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IIFL FINANCE 2017-18 Annual Report Analysis
Sat, 31 Mar

IIFL FINANCE has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

IIFL FINANCE Income Statement Analysis

  • Operating income during the year rose 31.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 25.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 64.3% in FY18 as against 67.5% in FY17.
  • Depreciation charges increased by 24.3% and finance costs increased by 30.1% YoY, respectively.
  • Other income grew by 46.2% YoY.
  • Net profit for the year grew by 24.8% YoY.
  • Net profit margins during the year declined from 17.1% in FY17 to 16.2% in FY18.

IIFL FINANCE Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 48,159 63,211 31.3%
Other income Rs m 1,277 1,867 46.2%
Total Revenues Rs m 49,436 65,078 31.6%
Gross profit Rs m 32,490 40,639 25.1%
Depreciation Rs m 540 671 24.3%
Interest Rs m 20,987 27,295 30.1%
Profit before tax Rs m 12,240 14,539 18.8%
Tax Rs m 4,018 4,275 6.4%
Profit after tax Rs m 8,222 10,265 24.8%
Gross profit margin % 67.5 64.3
Effective tax rate % 32.8 29.4
Net profit margin % 17.1 16.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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IIFL FINANCE Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 209 billion as compared to Rs 156 billion in FY17, thereby witnessing an increase of 34.0%.
  • Long-term debt stood at Rs 174 billion as compared to Rs 128 billion during FY17, a growth of 35.6%.
  • Current assets fell 70% and stood at Rs 55 billion, while fixed assets rose 126% and stood at Rs 386 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 441 billion as against Rs 352 billion during FY17, thereby witnessing a growth of 25%.

IIFL FINANCE Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 43,814 47,278 7.9
 
Current Liabilities Rs m 155,893 208,860 34.0
Long-term Debt Rs m 128,011 173,599 35.6
Total Liabilities Rs m 352,229 441,035 25.2
 
Current assets Rs m 181,475 54,877 -69.8
Fixed Assets Rs m 170,707 386,158 126.2
Total Assets Rs m 352,229 441,035 25.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



IIFL FINANCE Cash Flow Statement Analysis

  • IIFL FINANCE's cash flow from operating activities (CFO) during FY18 stood at Rs -105 billion, an improvement of 142.1% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 85 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -24 billion from the Rs 6 billion net cash flows seen during FY17.

IIFL FINANCE Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m -43,294 -104,835 -
Cash Flow from Investing Activities Rs m -41,648 -3,741 -
Cash Flow from Financing Activities Rs m 90,936 84,682 -6.9%
Net Cash Flow Rs m 5,993 -23,894 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for IIFL FINANCE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.2, an improvement from the EPS of Rs 25.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 703.6, stands at 34.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 3.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 18.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 151.5 198.2
TTM Earnings per share Rs 25.7 32.2
Diluted earnings per share Rs 21.5 27.0
Price to Cash Flow x 17.3 18.5
TTM P/E ratio x 20.6 34.9
Price / Book Value ratio x 2.2 4.3
Market Cap Rs m 96,755 202,233
Dividends per share (Unadj.) Rs 4.5 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for IIFL FINANCE

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY18, from 1.2x during FY17. 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 deteriorated and stood at 1.5x during FY18, from 1.6x during FY17. 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 21.7% during FY18, from 18.8% during FY18. 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 declined and down at 18.9% during FY18, from 19.3% during FY17. 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 8.5% during FY18, from 8.3% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.2 0.3
Debtors’ Days Days 40 17
Interest coverage x 1.6 1.5
Debt to equity ratio x 2.9 3.7
Return on assets % 8.3 8.5
Return on equity % 18.8 21.7
Return on capital employed % 19.3 18.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how IIFL FINANCE has performed over the last 5 years, please visit here.

IIFL FINANCE Share Price Performance

Over the last one year, IIFL FINANCE share price has moved up from Rs 399.6 to Rs 703.6, registering a gain of Rs 304.0 or around 76.1%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for IIFL FINANCE and quarterly results for IIFL FINANCE)

Annual Report FAQs

What is the current share price of IIFL FINANCE?

IIFL FINANCE currently trades at Rs 351.3 per share. You can check out the latest share price performance of IIFL FINANCE here...

What was the revenue of IIFL FINANCE in FY18? How does it compare to earlier years?

The revenues of IIFL FINANCE stood at Rs 65,078 m in FY18, which was up 31.6% compared to Rs 49,436 m reported in FY17.

IIFL FINANCE's revenue has grown from Rs 18,866 m in FY12 to Rs 65,078 m in FY18.

Over the past 7 years, the revenue of IIFL FINANCE has grown at a CAGR of 22.9%.

What was the net profit of IIFL FINANCE in FY18? How does it compare to earlier years?

The net profit of IIFL FINANCE stood at Rs 10,265 m in FY18, which was up 24.8% compared to Rs 8,222 m reported in FY17.

This compares to a net profit of Rs 5,548 m in FY16 and a net profit of Rs 1,361 m in FY12.

Over the past 7 years, IIFL FINANCE net profit has grown at a CAGR of 40.0%.

What does the cash flow statement of IIFL FINANCE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of IIFL FINANCE reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs -104,835 m as compared to Rs -43,294 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -3,741 m as compared to Rs -41,648 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs 84,682 m as compared to Rs 90,936 m in FY17.

Here's the cash flow statement of IIFL FINANCE for the past 7 years.

(Rs m)FY12FY16FY17FY18
From Operations-18,533-541-43,294-104,835
From Investments-6,196-6,707-41,648-3,741
From Financial Activity25,0305,24990,93684,682
Net Cashflow302-1,9995,993-23,894

What does the Key Ratio analysis of IIFL FINANCE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of IIFL FINANCE reveals:

  • Operating profit margins witnessed a fall and stood at 64.3% in FY18 as against 67.5% in FY17.
  • Net profit margins declined from 17.1% in FY17 to 16.2% in FY18.
  • Debt to Equity ratio for FY18 stood at 3.7 as compared to 2.9 in FY17.

Here's the ratio/financial analysis of IIFL FINANCE for the past 7 years.

 FY12FY16FY17FY18
Operating Profit Margin (%)41.965.567.564.3
Net Profit Margin (%)7.214.017.116.2
Debt to Equity Ratio (x)1.92.72.93.7

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