Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


IIFL SECURITIES 2020-21 Annual Report Analysis
Wed, 31 Mar

IIFL 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.

IIFL SECURITIES Income Statement Analysis

  • Operating income during the year rose 9.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 21.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 34.7% in FY21 as against 48.1% in FY20.
  • Depreciation charges decreased by 17.1% and finance costs decreased by 51.0% YoY, respectively.
  • Other income declined by 4.1% YoY.
  • Net profit for the year declined by 5.9% YoY.
  • Net profit margins during the year declined from 32.3% in FY20 to 27.8% in FY21.

IIFL SECURITIES Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 7,239 7,909 9.2%
Other income Rs m 1,112 1,066 -4.1%
Total Revenues Rs m 8,351 8,975 7.5%
Gross profit Rs m 3,484 2,742 -21.3%
Depreciation Rs m 553 459 -17.1%
Interest Rs m 1,028 503 -51.0%
Profit before tax Rs m 3,015 2,846 -5.6%
Tax Rs m 675 644 -4.6%
Profit after tax Rs m 2,339 2,201 -5.9%
Gross profit margin % 48.1 34.7
Effective tax rate % 22.4 22.6
Net profit margin % 32.3 27.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

IIFL SECURITIES Balance Sheet Analysis

  • The company's current liabilities during FY21 stood at Rs 26 billion as compared to Rs 15 billion in FY20, thereby witnessing an increase of 71.6%.
  • Current assets rose 80% and stood at Rs 29 billion, while fixed assets fell 22% and stood at Rs 6 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 35 billion as against Rs 24 billion during FY20, thereby witnessing a growth of 46%.

IIFL SECURITIES Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 8,769 9,631 9.8
 
Current Liabilities Rs m 14,998 25,738 71.6
Long-term Debt Rs m 532 0 -100.0
Total Liabilities Rs m 24,133 35,228 46.0
 
Current assets Rs m 15,992 28,842 80.4
Fixed Assets Rs m 8,141 6,386 -21.6
Total Assets Rs m 24,133 35,228 46.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



IIFL SECURITIES Cash Flow Statement Analysis

  • IIFL SECURITIES's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 1 billion, an improvement of 800.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -4 billion, an improvement of 30% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -620 million from the Rs -1 billion net cash flows seen during FY20.

IIFL 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 3,516 1,518 -56.8%
Cash Flow from Investing Activities Rs m 164 1,475 800.8%
Cash Flow from Financing Activities Rs m -5,138 -3,613 -
Net Cash Flow Rs m -1,412 -620 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for IIFL SECURITIES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an decline from the EPS of Rs 7.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 46.8, stands at 6.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.4 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 22.6 26.1
TTM Earnings per share Rs 7.3 7.3
Diluted earnings per share Rs 7.7 7.2
Price to Cash Flow x 3.3 5.4
TTM P/E ratio x 4.0 6.5
Price / Book Value ratio x 1.5 1.5
Market Cap Rs m 13,064 14,314
Dividends per share (Unadj.) Rs 2.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for IIFL SECURITIES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY21, from 1.1x 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 6.7x during FY21, from 3.9x 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 declined and down at 22.9% during FY21, from 26.7% 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 declined and down at 34.8% during FY21, from 43.5% 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 declined and down at 7.7% during FY21, from 14.0% 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 1.1 1.1
Debtors’ Days Days 19 21
Interest coverage x 3.9 6.7
Debt to equity ratio x 0.1 0.0
Return on assets % 14.0 7.7
Return on equity % 26.7 22.9
Return on capital employed % 43.5 34.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

IIFL SECURITIES Share Price Performance

Over the last one year, IIFL SECURITIES share price has moved up from Rs 31.1 to Rs 46.8, registering a gain of Rs 15.8 or around 50.7%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

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

Annual Report FAQs

What is the current share price of IIFL SECURITIES?

IIFL SECURITIES currently trades at Rs 122.7 per share. You can check out the latest share price performance of IIFL SECURITIES here...

What was the revenue of IIFL SECURITIES in FY21? How does it compare to earlier years?

The revenues of IIFL SECURITIES stood at Rs 8,975 m in FY21, which was up 7.5% compared to Rs 8,351 m reported in FY20.

IIFL SECURITIES' revenue has grown from Rs 5,084 m in FY17 to Rs 8,975 m in FY21.

Over the past 5 years, the revenue of IIFL SECURITIES has grown at a CAGR of 15.3%.

What was the net profit of IIFL SECURITIES in FY21? How does it compare to earlier years?

The net profit of IIFL SECURITIES stood at Rs 2,201 m in FY21, which was down -5.9% compared to Rs 2,339 m reported in FY20.

This compares to a net profit of Rs 1,750 m in FY19 and a net profit of Rs 1,864 m in FY18.

Over the past 5 years, IIFL SECURITIES net profit has grown at a CAGR of 30.5%.

What does the cash flow statement of IIFL SECURITIES 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 SECURITIES reveals:

  • Cash flow from operations decreased in FY21 and stood at Rs 1,518 m as compared to Rs 3,516 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs 1,475 m as compared to Rs 164 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs -3,613 m as compared to Rs -5,138 m in FY20.

Here's the cash flow statement of IIFL SECURITIES for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations-2,419-1,1055,8683,5161,518
From Investments-267-1,29331641,475
From Financial Activity-4024,625-4,936-5,138-3,613
Net Cashflow-3,0882,344935-1,412-620

What does the Key Ratio analysis of IIFL SECURITIES 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 SECURITIES reveals:

  • Operating profit margins witnessed a fall and stood at 34.7% in FY21 as against 48.1% in FY20.
  • Net profit margins declined from 32.3% in FY20 to 27.8% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.0 as compared to 0.1 in FY20.

Here's the ratio/financial analysis of IIFL SECURITIES for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)26.241.845.348.134.7
Net Profit Margin (%)15.022.321.032.327.8
Debt to Equity Ratio (x)0.00.20.10.10.0

Read: Latest Annual Report Analysis of IIFL SECURITIES

Equitymaster requests your view! Post a comment on "IIFL SECURITIES 2020-21 Annual Report Analysis". Click here!