IIFL HOLDINGS 2017-18 Annual Report Analysis

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IIFL HOLDINGS 2017-18 Annual Report Analysis
Fri, 4 Jan

IIFL HOLDINGS 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 HOLDINGS Income Statement Analysis

  • Operating income during the year rose 21.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 13.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 73.0% in FY18 as against 77.8% in FY17.
  • Depreciation charges increased by 9.1% and finance costs increased by 6.6% YoY, respectively.
  • Other income grew by 58.9% YoY.
  • Net profit for the year grew by 39.4% YoY.
  • Net profit margins during the year grew from 14.2% in FY17 to 16.2% in FY18.

IIFL HOLDINGS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 31,379 38,126 21.5%
Other income Rs m 262 415 58.9%
Total Revenues Rs m 31,640 38,542 21.8%
Gross profit Rs m 24,428 27,815 13.9%
Depreciation Rs m 159 173 9.1%
Interest Rs m 17,794 18,968 6.6%
Profit before tax Rs m 6,737 9,089 34.9%
Tax Rs m 2,260 2,850 26.1%
Profit after tax Rs m 4,478 6,240 39.4%
Gross profit margin % 77.8 73.0
Effective tax rate % 33.5 31.4
Net profit margin % 14.2 16.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



IIFL HOLDINGS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 240 billion as compared to Rs 150 billion in FY17, thereby witnessing an increase of 60.6%.
  • Long-term debt down at Rs 127 billion as compared to Rs 128 billion during FY17, a fall of 0.7%.
  • Current assets rose 23% and stood at Rs 215 billion, while fixed assets rose 18% and stood at Rs 7 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 437 billion as against Rs 338 billion during FY17, thereby witnessing a growth of 29%.

IIFL HOLDINGS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 43,814 50,657 15.6
 
Current Liabilities Rs m 149,544 240,168 60.6
Long-term Debt Rs m 128,011 127,110 -0.7
Total Liabilities Rs m 337,607 437,033 29.5
 
Current assets Rs m 175,126 215,405 23.0
Fixed Assets Rs m 6,130 7,251 18.3
Total Assets Rs m 337,607 437,033 29.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



IIFL HOLDINGS Cash Flow Statement Analysis

  • IIFL HOLDINGS's cash flow from operating activities (CFO) during FY18 stood at Rs -70 billion, an improvement of 819.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 66 billion, an improvement of 130% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -7 billion from the Rs 6 billion net cash flows seen during FY17.

IIFL HOLDINGS 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 -7,561 -69,552 -
Cash Flow from Investing Activities Rs m -20,102 -1,805 -
Cash Flow from Financing Activities Rs m 28,869 66,452 130.2%
Net Cash Flow Rs m 5,993 -6,948 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for IIFL HOLDINGS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.6, an improvement from the EPS of Rs 14.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 496.4, stands at 15.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 5.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 24.0 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 98.7 119.5
TTM Earnings per share Rs 14.1 19.6
Diluted earnings per share Rs 14.4 20.1
Price to Cash Flow x 34.0 24.0
TTM P/E ratio x 16.0 15.6
Price / Book Value ratio x 2.2 4.0
Market Cap Rs m 157,811 153,998
Dividends per share (Unadj.) Rs 4.5 5.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for IIFL HOLDINGS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.9x 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 1.4x 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 12.3% during FY18, from 10.2% 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 improved and stood at 15.8% during FY18, from 14.3% 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 declined and down at 5.8% during FY18, from 6.6% 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 0.9
Debtors’ Days Days 62 25
Interest coverage x 1.4 1.5
Debt to equity ratio x 2.9 2.5
Return on assets % 6.6 5.8
Return on equity % 10.2 12.3
Return on capital employed % 14.3 15.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

IIFL HOLDINGS Share Price Performance

Over the last one year, IIFL HOLDINGS share price has moved up from Rs 670.3 to Rs 496.4, registering a loss of Rs 173.9 or around 25.9%.

Overall, the S&P BSE SENSEX is up 4.8% over the year.

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

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