APOLLO PIPES 2023-24 Annual Report Analysis

Thu, 19 Sep

APOLLO PIPES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

APOLLO PIPES Income Statement Analysis

• Operating income during the year rose 6.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.8% in FY24 as against 7.5% in FY23.
• Depreciation charges increased by 4.7% and finance costs decreased by 38.8% YoY, respectively.
• Other income grew by 98.8% YoY.
• Net profit for the year grew by 77.5% YoY.
• Net profit margins during the year grew from 2.6% in FY23 to 4.3% in FY24.

APOLLO PIPES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,145	9,771	6.8%
Other income	Rs m	20	39	98.8%
Total Revenues	Rs m	9,165	9,810	7.0%
Gross profit	Rs m	686	961	40.0%
Depreciation	Rs m	284	297	4.7%
Interest	Rs m	94	58	-38.8%
Profit before tax	Rs m	327	644	96.9%
Tax	Rs m	88	220	149.4%
Profit after tax	Rs m	239	424	77.5%
Gross profit margin	%	7.5	9.8
Effective tax rate	%	27.0	34.1
Net profit margin	%	2.6	4.3

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APOLLO PIPES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 19.6%.
• Current assets fell 22% and stood at Rs 3 billion, while fixed assets rose 71% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 24%.

APOLLO PIPES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,553	5,090	11.8
Current Liabilities	Rs m	1,984	2,372	19.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,620	8,237	24.4
Current assets	Rs m	3,303	2,579	-21.9
Fixed Assets	Rs m	3,317	5,658	70.6
Total Assets	Rs m	6,620	8,237	24.4

APOLLO PIPES Cash Flow Statement Analysis

• APOLLO PIPES's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 79.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 214.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 764 million, an improvement of 1,080% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -143 million from the Rs -70 million net cash flows seen during FY23.

APOLLO PIPES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	687	1,230	79.0%
Cash Flow from Investing Activities	Rs m	-680	-2,137	-
Cash Flow from Financing Activities	Rs m	-78	764	-
Net Cash Flow	Rs m	-70	-143	-

Current Valuations for APOLLO PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an improvement from the EPS of Rs 6.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 600.0, stands at 58.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 36.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	232.5	248.3
TTM Earnings per share	Rs	6.1	10.8
Diluted earnings per share	Rs	5.8	10.3
Price to Cash Flow	x	43.3	36.2
TTM P/E ratio	x	94.8	58.0
Price / Book Value ratio	x	4.5	5.1
Market Cap	Rs m	20,268	26,150
Dividends per share (Unadj.)	Rs	0.6	1.0

Ratio Analysis for APOLLO PIPES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.7x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 12.2x during FY24, from 4.5x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 8.3% during FY24, from 5.3% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 13.8% during FY24, from 9.3% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 5.9% during FY24, from 5.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.7	1.1
Debtors’ Days	Days	262	195
Interest coverage	x	4.5	12.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.0	5.9
Return on equity	%	5.3	8.3
Return on capital employed	%	9.3	13.8

To see how APOLLO PIPES has performed over the last 5 years, please visit here.

APOLLO PIPES Share Price Performance

Over the last one year, APOLLO PIPES share price has moved down from Rs 692.3 to Rs 600.0, registering a loss of Rs 92.3 or around 13.3%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for APOLLO PIPES and quarterly results for APOLLO PIPES)