IIFL SECURITIES 2020-21 Annual Report Analysis

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IIFL SECURITIES 2020-21 Annual Report Analysis
Mon, 8 Nov

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 28.0% in FY20 to 24.5% 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 % 28.0 24.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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 100.9, stands at 11.4 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 11.5 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 22.6 26.1
TTM Earnings per share Rs 7.3 7.3
Diluted earnings per share Rs 7.7 7.3
Price to Cash Flow x 11.1 11.5
TTM P/E ratio x 12.0 11.4
Price / Book Value ratio x 1.5 1.5
Market Cap Rs m 32,249 30,592
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 38.7 to Rs 100.9, registering a gain of Rs 62.2 or around 160.7%.

Overall, the S&P BSE SENSEX is up 49.1% over the year.

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

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