ICICI SECURITIES 2020-21 Annual Report Analysis

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ICICI SECURITIES 2020-21 Annual Report Analysis
Wed, 27 Oct

ICICI SECURITIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

ICICI SECURITIES Income Statement Analysis

  • Operating income during the year rose 50.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 80.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 61.4% in FY21 as against 51.1% in FY20.
  • Depreciation charges decreased by 11.8% and finance costs increased by 24.2% YoY, respectively.
  • Other income declined by 81.1% YoY.
  • Net profit for the year grew by 97.0% YoY.
  • Net profit margins during the year grew from 31.1% in FY20 to 41.2% in FY21.

ICICI SECURITIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 17,191 25,862 50.4%
Other income Rs m 217 41 -81.1%
Total Revenues Rs m 17,407 25,903 48.8%
Gross profit Rs m 8,791 15,881 80.7%
Depreciation Rs m 614 542 -11.8%
Interest Rs m 864 1,073 24.2%
Profit before tax Rs m 7,529 14,308 90.0%
Tax Rs m 2,109 3,631 72.1%
Profit after tax Rs m 5,420 10,677 97.0%
Gross profit margin % 51.1 61.4
Effective tax rate % 28.0 25.4
Net profit margin % 31.1 41.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ICICI SECURITIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 63 billion as compared to Rs 32 billion in FY20, thereby witnessing an increase of 99.9%.
  • Current assets rose 96% and stood at Rs 78 billion, while fixed assets fell 5% and stood at Rs 20 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 98 billion as against Rs 61 billion during FY20, thereby witnessing a growth of 61%.

ICICI SECURITIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 12,038 18,049 49.9
 
Current Liabilities Rs m 31,504 62,982 99.9
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 61,166 98,417 60.9
 
Current assets Rs m 39,897 78,110 95.8
Fixed Assets Rs m 21,269 20,307 -4.5
Total Assets Rs m 61,166 98,417 60.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ICICI SECURITIES Cash Flow Statement Analysis

  • ICICI SECURITIES's cash flow from operating activities (CFO) during FY21 stood at Rs -16 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -402 million, an improvement of 77.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 14 billion, an improvement of 154% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -2 billion from the Rs -13 billion net cash flows seen during FY20.

ICICI SECURITIES Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m -18,783 -16,095 -
Cash Flow from Investing Activities Rs m -226 -402 -
Cash Flow from Financing Activities Rs m 5,588 14,170 153.6%
Net Cash Flow Rs m -13,421 -2,327 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ICICI SECURITIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.1, an improvement from the EPS of Rs 16.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 747.1, stands at 19.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 5.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 21.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 53.4 80.3
TTM Earnings per share Rs 16.8 33.1
Diluted earnings per share Rs 16.8 33.1
Price to Cash Flow x 39.9 21.5
TTM P/E ratio x 19.1 19.1
Price / Book Value ratio x 9.6 7.5
Market Cap Rs m 240,672 240,738
Dividends per share (Unadj.) Rs 11.0 21.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ICICI SECURITIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY21, from 1.3x during FY20. 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 14.3x during FY21, from 9.7x during FY20. 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 59.2% during FY21, from 45.0% during FY21. 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 85.2% during FY21, from 69.7% during FY20. 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 11.9% during FY21, from 10.3% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.3 1.2
Debtors’ Days Days 19 65
Interest coverage x 9.7 14.3
Debt to equity ratio x 0.0 0.0
Return on assets % 10.3 11.9
Return on equity % 45.0 59.2
Return on capital employed % 69.7 85.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

ICICI SECURITIES Share Price Performance

Over the last one year, ICICI SECURITIES share price has moved up from Rs 468.1 to Rs 747.1, registering a gain of Rs 279.1 or around 59.6%.

Overall, the S&P BSE SENSEX is up 52.3% over the year.

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

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