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Working Capital: Apl Apollo Tubes LTD
Working Capital: Apl Apollo Tubes LTD
Working Capital: Apl Apollo Tubes LTD
Overdraft
Bills Discounting
Bank Guarantee
Structured Product:
Factoring
Commercial Paper
Securitization of receivables
Buyers/Supplier credit.
APL Apollo Tubes Ltd.
Among the 3 top manufacturer of the steel tubes, pipes and
hollow sections in India.
Delhi based with 5 manufacturing location at
northern, southern and western part of the India with installed
capacities ½ Million MTPA.
Despite a slowdown in the Indian economy Company has
recorded a gross sales growth of 56% over 2010-11, EBIDTA
growth of 26.19% and net profit growth of 13.83%.
Intends to double production capacity to a million tonnes per
annum by 2015 and generating revenues worth US$1 billion.
Plan to increase presence in new geographies including Tier II
& Tier III cities.
Working Capital Cycle
APL Apollo Tubes Ltd
40 Days
Tubes Industry
44
Days 34 30 Days
Days
30
Days 60 Days 60
Days
30 Days
Operating Cycle in number of days
Finished Goods 16 35
Debtors 44 46
Total 74 103
Creditors 34 36
Net Working Capital 40 68
Current Ratio - Analysis
5.00
4.50 4.45
4.00 3.87
3.50 3.60
3.00 3.00
2.78
2.50
2.00
1.50
1.00
0.50
0.00
Mar '12 Mar '11 Mar '10 Mar '09 Mar '08
As per Tondon Committee
Sources Of Funds
Total Share Capital 21.3 27.6 35.3
KEY RATIOS APL Man Mah
Equity Share Capital
Share Application Money
21.3
8.3
27.6
-
35.3
-
Ind Seam
Reserves 236.9 617.3 2,724.6
Networth 266.5 644.9 2,759.8
Secured Loans
Unsecured Loans
192.5
-
230.2
-
1.6
29.3
Current Ratio 3.6 1.4 3.4
Total Debt 192.5 230.2 30.9
Total Liabilities 459.0 875.2 2,790.7
Holding Days
Application Of Funds Inventory
Gross Block 140.8 589.8 1,502.2
Less: Accum. Depreciation 16.7 241.8 179.5
Net Block 124.1 348.0 1,322.7 Raw Material 14.0 18.6 94.0
Capital Work in Progress 33.9 0.9 9.9
Investments 76.8 302.5 473.6
Inventories 93.0 160.2 717.2 Finished Goods 16.0 13.8 24.6
Sundry Debtors 139.9 298.5 362.2
Cash and Bank Balance 3.2 107.8 20.1
Total Current Assets 236.0 566.5 1,099.6 Sundry Debtors 44.0 63.2 54.5
Loans and Advances 85.0 284.5 261.1
Total CA, Loans & Advances 321.1 851.0 1,360.6
Current Liabilities 87.4 557.5 366.7 Sundry Creditors 34.0 132.9 31.1
Provisions 9.6 69.7 9.4
Total CL & Provisions 96.9 627.2 376.1
Net Current Assets 224.1 223.8 984.6
Total Assets 459.0 875.2 2,790.7
Recommendation
Pros Cons
Signifies efficient Risk of failure to meet
working capital short-term obligation.
management. May result in lower
Saving in interest
credit rating because of
failure/delay in
expenses. payments.
Less risk of Bad-debt Bank may charge
For eg. Automobile higher interest rate.
Industry For eg. Steel Industry
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