ICICI SECURITIES 2021-22 Annual Report Analysis

Thu, 31 Mar

ICICI 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.

ICICI SECURITIES Income Statement Analysis

• Operating income during the year rose 32.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 63.4% in FY22 as against 61.4% in FY21.
• Depreciation charges increased by 15.4% and finance costs increased by 155.1% YoY, respectively.
• Other income grew by 172.0% YoY.
• Net profit for the year grew by 29.5% YoY.
• Net profit margins during the year declined from 41.3% in FY21 to 40.3% in FY22.

ICICI SECURITIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	25,862	34,350	32.8%
Other income	Rs m	41	112	172.0%
Total Revenues	Rs m	25,903	34,461	33.0%
Gross profit	Rs m	15,881	21,778	37.1%
Depreciation	Rs m	542	625	15.4%
Interest	Rs m	1,073	2,737	155.1%
Profit before tax	Rs m	14,308	18,528	29.5%
Tax	Rs m	3,631	4,702	29.5%
Profit after tax	Rs m	10,677	13,826	29.5%
Gross profit margin	%	61.4	63.4
Effective tax rate	%	25.4	25.4
Net profit margin	%	41.3	40.3

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ICICI SECURITIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 112 billion as compared to Rs 63 billion in FY21, thereby witnessing an increase of 77.8%.
• Current assets rose 69% and stood at Rs 132 billion, while fixed assets rose 43% and stood at Rs 29 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 161 billion as against Rs 98 billion during FY21, thereby witnessing a growth of 64%.

ICICI SECURITIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	18,049	24,034	33.2
Current Liabilities	Rs m	62,982	112,006	77.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	98,417	161,397	64.0
Current assets	Rs m	78,110	132,280	69.4
Fixed Assets	Rs m	20,307	29,117	43.4
Total Assets	Rs m	98,417	161,397	64.0

ICICI SECURITIES Cash Flow Statement Analysis

• ICICI SECURITIES's cash flow from operating activities (CFO) during FY22 stood at Rs -26 billion, an improvement of 61.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -688 million, an improvement of 71.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 31 billion, an improvement of 121% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 5 billion from the Rs -2 billion net cash flows seen during FY21.

ICICI 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	-16,095	-25,975	-
Cash Flow from Investing Activities	Rs m	-402	-688	-
Cash Flow from Financing Activities	Rs m	14,170	31,305	120.9%
Net Cash Flow	Rs m	-2,327	4,642	-

Current Valuations for ICICI SECURITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.8, an improvement from the EPS of Rs 33.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 621.7, stands at 14.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.4 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 14.2 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	80.3	106.5
TTM Earnings per share	Rs	33.1	42.8
Diluted earnings per share	Rs	33.1	42.8
Price to Cash Flow	x	11.0	14.2
TTM P/E ratio	x	11.5	14.5
Price / Book Value ratio	x	7.5	8.6
Market Cap	Rs m	135,444	205,692
Dividends per share (Unadj.)	Rs	21.5	24.0

Ratio Analysis for ICICI SECURITIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY22, from 1.2x 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 deteriorated and stood at 7.8x during FY22, from 14.3x 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 declined and down at 57.5% during FY22, from 59.2% 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 88.5% during FY22, from 85.2% 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 declined and down at 10.3% during FY22, from 11.9% 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	1.2	1.2
Debtors’ Days	Days	65	41
Interest coverage	x	14.3	7.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.9	10.3
Return on equity	%	59.2	57.5
Return on capital employed	%	85.2	88.5

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 381.6 to Rs 621.7, registering a gain of Rs 240.1 or around 62.9%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

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

Read: Latest Annual Report Analysis of ICICI SECURITIES