APL APOLLO

FINANCIAL
ANALYSIS
FY 2018-19

BY GROUP D
 MANUFACTURING INDUSTRY
Manufacturing industries are those which involve in the manufacturing and processing of items and indulge in
creation of new commodities.
Manufacturing industries are broadly categorized into engineering industries, construction industries,
electronics industries, chemical industries, energy industries, textile industries, food and beverage industries,
metalworking industries, plastic industries, transport and telecommunication industries.

Source: https://www.economywatch.com/world-industries/manufacturing/ 2
ABOUT

APL Apollo Tubes Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 5115.07 Crore) operating in
Metals - Ferrous sector.

APL Apollo Tubes Ltd. key Products/Revenue Segments include Pipes & Tubes Steel which contributed Rs 4288.39 Crore to Sales
Value (96.77 % of Total Sales), Scrap which contributed Rs 137.63 Crore to Sales Value (3.10 % of Total Sales), Export Incentives
which contributed Rs 4.21 Crore to Sales Value (0.09 % of Total Sales), Commission which contributed Rs .77 Crore to Sales Value
(0.01 % of Total Sales) and Job Work which contributed Rs .17 Crore to Sales Value (0.00 % of Total Sales)for the year ending 31-
Mar-2018.

For the quarter ended 31-12-2019, the company has reported a Consolidated sales of Rs 2040.45 Crore, up 28.83 % from last
quarter Sales of Rs 1583.81 Crore and up 25.83 % from last year same quarter Sales of Rs 1621.64 Crore Company has reported net
profit after tax of Rs 83.25 Crore in latest quarter.
The company’s top management includes Mr.Abhilash Lal, Mr.Anil Kumar Bansal, Mr.Ashok K Gupta, Mr.Romi Sehgal, Mr.Sanjay
Gupta, Mr.Vinay Gupta, Mr.Virendra Singh Jain, Ms.Neeru Abrol. Company has Deloitte Haskins & Sells LLP as its auditoRs As on 31-
12-2019, the company has a total of 24,867,265 shares outstanding.
Source: https://m.economictimes.com/apl-apollo-tubes-ltd/stocks/companyid-6683.cms

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BALANCE SHEET
A. BALANCE SHEET AS AT 43,555.00 43,190.00 FY 1 FY 2
ASSETS
NON CURRENT ASSETS
a) Property, plant and equipment 1,007.77 848.66 36.33% 38.91%
b) Capital work in progress 27.46 45.95 0.99% 2.11%
Investment Property 0.00 10.91 0.00% 0.50%

• Assets are concentrated in Property, plant and

c) Intangible Assets - (goodwill etc) 25.86 26.25 0.93% 1.20%
d) Financial Assets
Investments 49.38 1.11 1.78% 0.05%
Loans 0.50 0.00 equipment and Inventories as this is a
manufacturing company.
Other financial assets 40.39 20.00 1.46% 0.92%
e) Defered Tax Assets
f) Income Tax Net 0.66 0.00 0.02% 0.00%
e) Other Non-current assets 132.88 89.89 4.79% 4.12%
Total 1,284.90 1,042.77 46.32% 47.81% -Current assets increased by 30%
CURRENT ASSETS
a) Inventories 783.50 591.49 28.25% 27.12%
b) Financial Assets -Inventory went up by 32%
Investments 0.00 0.00 0.00% 0.00%
Trade Receivables 543.31 432.13 19.59% 19.81%
Cash and bank balances 47.80 6.80 1.72% 0.31%
Loans Receivable 1.32 1.16 0.05% 0.05%

• Liabilities are concentrated in equity, trade

Other financial assets 5.98 22.75 0.22% 1.04%
c) Inccome Tax (net) 0.00 0.00 0.00% 0.00%
Assets classified as Held for Sale 10.43 0.00 0.38% 0.00%
d) Other current assets 96.64 84.08 3.48% 3.85% payables and borrowings.
1,488.98 1,138.41 53.68% 52.19%
TOTAL 2,773.88 2,181.18 100.00% 100.00%
EQUITY AND LIABILITIES -Current liabilities increased by 29%
Equity
a) Share Capital 23.85 23.73 0.86% 1.09%
b) Other Equity
Total Equity
940.21
964.06
814.12
837.85
33.90%
34.75%
37.32%
38.41%
-Accounts Payable increased by 84%
NON CURRENT LIABILITIES
a) Financial Liabilities:
Borrowing 174.52 78.20 6.29% 3.59%
Other financial liabilities 0.65 0.59 0.02% 0.03%
b) Provisions
c) Defered Tax Liability 119.97
9.94
99.41
7.81 0.36%
4.32%
0.36%
4.56%
• Working capital increased by 217%
d) Other non-current liabilities 47.76 29.00 1.72% 1.33%
352.84 215.01 12.72% 9.86%
CURRENT LIABILITIES
a) Financial liabilities
Borrowing 535.59 595.15 19.31% 27.29%
Trade payables 698.92 379.27 25.20% 17.39%
Other fiancial liability 183.18 124.75 6.60% 5.72%
b) Provisions 0.84 0.29
c) Income Tax (net) 7.80 16.35
d) Other Current liabilities 30.65 12.51 1.10% 0.57%
1,456.98 1,128.32 52.52% 51.73%
TOTAL 2,773.88 2,181.18 100.00% 100.00%

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PROFIT & LOSS
B. PROFIT AND LOSS STATEMENT FYE 43,555.00 43,190.00 FY 1 FY 2
REVENUE
Revenue from Operations (Gross) 7,152.32 5,472.38 99.84% 99.85%
Other operating income 11.71 8.01 0.16% 0.15%
TOTAL REVENUE 7,164.03 5,480.39 100.00% 100.00%

EXPENSES
Cost of Materials Consumed 6,288.78 4,568.16 87.78% 83.35%
Purchases of Stock-in-Trade 107.20 56.23
Changes in Inventories of Finished goods,
Stock-in-Trade and Work-in-Progress
(88.30) (76.06) • Total revenue went up by 34%.
Excise Duty - 137.61
Employee benefit expenses 107.94 86.16 1.51% 1.57% • Operating expense went up by 36%.
Other expenses 343.86 329.24 4.80% 6.01%
TOTAL OPERATING CASH EXPENSES 6,759.48 5,101.34 94.09% 90.93% • Net Income(PAT) went down by 6% due to
higher finance costs.
EBITDA 404.55 379.05 5.65% 6.92%
Depreciation & Amortisation Expenses 64.26 53.41 0.90% 0.97% • Earnings per share went down by 4%
PBIT - OPERATING PROFIT 340.29 325.64 4.75% 5.94%

Finance costs 113.35 81.30 1.58% 1.48%

Profit Before Tax 226.94 244.34 3.17% 4.46%

Income Tax 78.69 86.21 1.10% 1.57%
Profit After Tax 148.25 158.13 2.07% 2.89%
Other Comprehensive Income 8.74 0.61 0.12% 0.01%
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 156.99 158.74 2.19% 2.90%

EARNINGS PER SHARE 124.23 132.47 5

RATIO ANALYSIS
D. KEY RATIOS 43,555.00 43,190.00
Profitability
### PROFITABILITY:
Sales growth 0.31 #DIV/0!
• Sales have increased by 31%
EBITDA growth
PBIT growth
0.07
0.04
#DIV/0!
#DIV/0!
• PAT has reduced by 6%, finance cost is high due to high borrowing.
PAT growth (0.06) #DIV/0!
• ROE (PAT/Equity) is good as per industry standards
Operating Cash Profit/Sales - EBITDA 0.06 0.07
Operating Profit/Sales - PBIT/Sales 0.05 0.06 Liquidity
• Quick ratio is 0.48 which is slightly less than industry standard.
PAT/Sales 0.02 0.03
ROCE - (PBIT/Capital Employed) 0.12 0.15
ROE - (PAT/Equity) 0.15 0.19
• Operating cycle is approx. 2 and half months.
### LIQUIDITY:
Current Ratio 1.02 1.01 Leverage
Quick Ratio 0.48 0.48
Net Working Capital 567.59 605.24 • Debt/Equity ratio is 0.37. Company has higher debts.
• Interest cover is good with 3.
NWC/Sales 0.08 0.11
Bank OD/NWC 0.94 0.98
Receivables days sales 27.68 28.78
Inventory Holding - days COS 45.47 47.26 Turnover
Trade Payables days COS 40.57 30.30
• Total assets turnover has increased 2.58 from 2.51 (utilization of assets has
### LEVERAGE:
Long Term Debt/Equity 0.37 0.26 increased)
Total Outside Liability/Total net worth 1.88 1.60
Interest Cover 3.00 4.01 Valuation
Debt Service Cover
• Total comprehensive income of the year has slightly reduced from 158.74 to
### TURNOVER:
Inventory Turn over 8.03 7.72 156.99 inspite of strong sales due to inventory losses.
Receivables Turnover
Total assets Turnover
13.19
2.58
12.68
2.51
• Hence Earnings per share and dividend pay out ratio has remained almost
constant.
### VALUATION:
Total Comprensive Income for the year 156.99 158.74
No. of Equity shares 139,125,159.00 139,125,159.00
Earnings Per Share 1.13 1.14
Market price per share
Price-Earnings ratio
Dividend Paid 837.00 1,004.00
Dividend Pay out ratio 5.33 6.32

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RECOMMENDATION & IMPRESSION

• Has high level of debt

• Dividend is unstable
Impressions

• Leverage is 0.38. The company can have up to 3.

However, the company should make sure the ROE
Recommendations
is good. The company can take more risks to
increase the profits.

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THANK YOU!