IIFL SECURITIES 2022-23 Annual Report Analysis

Mon, 9 Oct

IIFL SECURITIES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

IIFL SECURITIES Income Statement Analysis

• Operating income during the year rose 9.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.8% in FY23 as against 39.3% in FY22.
• Depreciation charges increased by 5.3% and finance costs decreased by 25.0% YoY, respectively.
• Other income declined by 67.9% YoY.
• Net profit for the year declined by 18.3% YoY.
• Net profit margins during the year declined from 24.8% in FY22 to 18.5% in FY23.

IIFL SECURITIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,323	13,521	9.7%
Other income	Rs m	841	270	-67.9%
Total Revenues	Rs m	13,164	13,791	4.8%
Gross profit	Rs m	4,838	4,574	-5.5%
Depreciation	Rs m	635	668	5.3%
Interest	Rs m	1,024	767	-25.0%
Profit before tax	Rs m	4,021	3,409	-15.2%
Tax	Rs m	963	911	-5.4%
Profit after tax	Rs m	3,058	2,498	-18.3%
Gross profit margin	%	39.3	33.8
Effective tax rate	%	23.9	26.7
Net profit margin	%	24.8	18.5

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IIFL SECURITIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 39 billion as compared to Rs 49 billion in FY22, thereby witnessing an decrease of -20.0%.
• Current assets fell 12% and stood at Rs 47 billion, while fixed assets fell 23% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 52 billion as against Rs 60 billion during FY22, thereby witnessing a fall of 13%.

IIFL SECURITIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,738	13,410	14.2
Current Liabilities	Rs m	48,593	38,877	-20.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	60,174	52,071	-13.5
Current assets	Rs m	52,982	46,516	-12.2
Fixed Assets	Rs m	7,192	5,555	-22.8
Total Assets	Rs m	60,174	52,071	-13.5

IIFL SECURITIES Cash Flow Statement Analysis

• IIFL SECURITIES's cash flow from operating activities (CFO) during FY23 stood at Rs -8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -9 billion from the Rs 8 billion net cash flows seen during FY22.

IIFL SECURITIES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	7,949	-7,930	-
Cash Flow from Investing Activities	Rs m	-858	1,631	-
Cash Flow from Financing Activities	Rs m	1,076	-2,955	-
Net Cash Flow	Rs m	8,168	-9,254	-

Current Valuations for IIFL SECURITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an decline from the EPS of Rs 10.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 88.1, stands at 9.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	40.5	44.3
TTM Earnings per share	Rs	10.1	8.2
Diluted earnings per share	Rs	10.0	8.2
Price to Cash Flow	x	7.3	7.4
TTM P/E ratio	x	8.9	9.6
Price / Book Value ratio	x	2.3	1.8
Market Cap	Rs m	26,556	23,546
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for IIFL SECURITIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.1x during FY22. 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 5.4x during FY23, from 4.9x during FY22. 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 18.6% during FY23, from 26.1% during FY23. 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 31.1% during FY23, from 43.0% during FY22. 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 6.3% during FY23, from 6.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	14	14
Interest coverage	x	4.9	5.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.8	6.3
Return on equity	%	26.1	18.6
Return on capital employed	%	43.0	31.1

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 69.8 to Rs 88.1, registering a gain of Rs 18.3 or around 26.1%.

Overall, the S&P BSE SENSEX is up 12.5% over the year.

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