CIL SECURITIES 2021-22 Annual Report Analysis

Fri, 20 May

CIL SECURITIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

CIL SECURITIES Income Statement Analysis

• Operating income during the year rose 45.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 149.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 37.3% in FY22 as against 21.8% in FY21.
• Depreciation charges decreased by 12.2% and finance costs decreased by 13.1% YoY, respectively.
• Other income grew by 325.0% YoY.
• Net profit for the year grew by 200.0% YoY.
• Net profit margins during the year grew from 13.3% in FY21 to 27.3% in FY22.

CIL SECURITIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	57	83	45.6%
Other income	Rs m	0	0	325.0%
Total Revenues	Rs m	57	83	45.8%
Gross profit	Rs m	12	31	149.3%
Depreciation	Rs m	1	1	-12.2%
Interest	Rs m	1	1	-13.1%
Profit before tax	Rs m	10	29	187.7%
Tax	Rs m	3	6	150.8%
Profit after tax	Rs m	8	23	200.0%
Gross profit margin	%	21.8	37.3
Effective tax rate	%	25.2	21.9
Net profit margin	%	13.3	27.3

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CIL SECURITIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 266 million as compared to Rs 171 million in FY21, thereby witnessing an increase of 55.9%.
• Current assets rose 23% and stood at Rs 444 million, while fixed assets rose 124% and stood at Rs 64 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 507 million as against Rs 389 million during FY21, thereby witnessing a growth of 30%.

CIL SECURITIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	216	238	10.5
Current Liabilities	Rs m	171	266	55.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	389	507	30.3
Current assets	Rs m	361	444	22.9
Fixed Assets	Rs m	28	64	124.3
Total Assets	Rs m	389	507	30.3

CIL SECURITIES Cash Flow Statement Analysis

• CIL SECURITIES's cash flow from operating activities (CFO) during FY22 stood at Rs 58 million, an improvement of 11.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 12 million, an improvement of 60.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 0 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 70 million from the Rs 60 million net cash flows seen during FY21.

CIL SECURITIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	52	58	11.5%
Cash Flow from Investing Activities	Rs m	8	12	60.2%
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	60	70	17.9%

Current Valuations for CIL SECURITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an improvement from the EPS of Rs 1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 30.7, stands at 6.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 5.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	11.4	16.6
TTM Earnings per share	Rs	1.5	4.5
Diluted earnings per share	Rs	1.5	4.5
Price to Cash Flow	x	7.7	5.1
TTM P/E ratio	x	8.6	6.8
Price / Book Value ratio	x	0.3	0.5
Market Cap	Rs m	62	119
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CIL SECURITIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY22, from 2.1x during FY21. 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 24.0x during FY22, from 8.0x during FY21. 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 9.5% during FY22, from 3.5% during FY22. 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 12.7% during FY22, from 5.3% during FY21. 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 4.7% during FY22, from 2.3% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.1	1.7
Debtors’ Days	Days	164,553,330	119,290,482
Interest coverage	x	8.0	24.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.3	4.7
Return on equity	%	3.5	9.5
Return on capital employed	%	5.3	12.7

To see how CIL SECURITIES has performed over the last 5 years, please visit here.

CIL SECURITIES Share Price Performance

Over the last one year, CIL SECURITIES share price has moved up from Rs 12.0 to Rs 30.7, registering a gain of Rs 18.6 or around 154.6%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for CIL SECURITIES and quarterly results for CIL SECURITIES)

Read: Latest Annual Report Analysis of CIL SECURITIES