IIFL WEALTH MANAGEMENT 2020-21 Annual Report Analysis

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

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

IIFL WEALTH MANAGEMENT 2020-21 Annual Report Analysis
Wed, 27 Oct

IIFL WEALTH MANAGEMENT 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 WEALTH MANAGEMENT Income Statement Analysis

  • Operating income during the year rose 4.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 49.4% in FY21 as against 45.9% in FY20.
  • Depreciation charges increased by 4.7% and finance costs decreased by 17.6% YoY, respectively.
  • Other income grew by 54.9% YoY.
  • Net profit for the year grew by 83.5% YoY.
  • Net profit margins during the year grew from 11.4% in FY20 to 19.9% in FY21.

IIFL WEALTH MANAGEMENT Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 17,392 18,102 4.1%
Other income Rs m 306 474 54.9%
Total Revenues Rs m 17,698 18,576 5.0%
Gross profit Rs m 7,984 8,940 12.0%
Depreciation Rs m 410 430 4.7%
Interest Rs m 5,016 4,135 -17.6%
Profit before tax Rs m 2,864 4,849 69.3%
Tax Rs m 853 1,157 35.7%
Profit after tax Rs m 2,012 3,692 83.5%
Gross profit margin % 45.9 49.4
Effective tax rate % 29.8 23.9
Net profit margin % 11.4 19.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Watch Full Replay: Rahul Shah's Lazy Millionaire Summit

IIFL WEALTH MANAGEMENT Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 12 billion as compared to Rs 37 billion in FY20, thereby witnessing an decrease of -66.6%.
  • Long-term debt down at Rs 42 billion as compared to Rs 60 billion during FY20, a fall of 29.8%.
  • Current assets fell 16% and stood at Rs 66 billion, while fixed assets fell 59% and stood at Rs 21 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 87 billion as against Rs 130 billion during FY20, thereby witnessing a fall of 33%.

IIFL WEALTH MANAGEMENT Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 29,660 27,640 -6.8
 
Current Liabilities Rs m 37,129 12,392 -66.6
Long-term Debt Rs m 59,519 41,763 -29.8
Total Liabilities Rs m 130,210 87,388 -32.9
 
Current assets Rs m 78,734 66,453 -15.6
Fixed Assets Rs m 51,477 20,935 -59.3
Total Assets Rs m 130,210 87,388 -32.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



IIFL WEALTH MANAGEMENT Cash Flow Statement Analysis

  • IIFL WEALTH MANAGEMENT's cash flow from operating activities (CFO) during FY21 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs 41 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -48 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -3 billion from the Rs 6 billion net cash flows seen during FY20.

IIFL WEALTH MANAGEMENT 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 16,281 4,122 -74.7%
Cash Flow from Investing Activities Rs m -33,607 41,289 -
Cash Flow from Financing Activities Rs m 22,897 -48,356 -
Net Cash Flow Rs m 5,571 -2,945 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for IIFL WEALTH MANAGEMENT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.0, an improvement from the EPS of Rs 23.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,566.5, stands at 34.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 5.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 33.4 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 199.6 206.1
TTM Earnings per share Rs 23.1 42.0
Diluted earnings per share Rs 22.9 42.0
Price to Cash Flow x 56.4 33.4
TTM P/E ratio x 33.8 34.1
Price / Book Value ratio x 3.5 3.4
Market Cap Rs m 136,513 137,723
Dividends per share (Unadj.) Rs 20.0 70.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for IIFL WEALTH MANAGEMENT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 5.4x during FY21, from 2.1x 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 2.2x during FY21, from 1.6x 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 13.4% during FY21, from 6.8% 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 12.9% during FY21, from 8.8% 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 9.0% during FY21, from 5.4% 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 2.1 5.4
Debtors’ Days Days 76 69
Interest coverage x 1.6 2.2
Debt to equity ratio x 2.0 1.5
Return on assets % 5.4 9.0
Return on equity % 6.8 13.4
Return on capital employed % 8.8 12.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

IIFL WEALTH MANAGEMENT Share Price Performance

Over the last one year, IIFL WEALTH MANAGEMENT share price has moved up from Rs 898.1 to Rs 1,566.5, registering a gain of Rs 668.4 or around 74.4%.

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

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

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

  

Related Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

Tata Steel vs SAIL: Which Stock is Better?(Views On News)

Jan 13, 2022

With government initiatives set to boost the steel sector, find out who has a better chance of coming out on top.

These 5 Penny Stocks are Held by Rakesh Jhunjhunwala. Worth a Look?(Views On News)

Jan 18, 2022

Rakesh Jhunjhunwala is holding these penny stocks in his portfolio for several years now.

Tech Mahindra's CTC Acquisition: Too Expensive?(Views On News)

Jan 18, 2022

Tech Mahindra's acquisition of European IT-company fails to excite investors.

Time to Buy Energy Stocks(Fast Profits Daily)

Jan 14, 2022

Energy is a sector that looks set to take off. It's time to get in.

5 Hidden Tata Group Companies to Add to Your Watchlist(Views On News)

Jan 18, 2022

Here's all you need to know about these five Tata group stocks that aren't as popular as the others.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK IIFL WEALTH MANAGEMENT

  • Track your investment in IIFL WEALTH MANAGEMENT with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON IIFL WEALTH MANAGEMENT

IIFL WEALTH MANAGEMENT 5-YR ANALYSIS

COMPARE IIFL WEALTH MANAGEMENT WITH

MARKET STATS