SHARE INDIA SECURITIES 2021-22 Annual Report Analysis

Thu, 31 Mar

SHARE INDIA 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.

SHARE INDIA SECURITIES Income Statement Analysis

• Operating income during the year rose 91.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 129.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.1% in FY22 as against 28.3% in FY21.
• Depreciation charges increased by 108.2% and finance costs increased by 26.7% YoY, respectively.
• Other income grew by 149.5% YoY.
• Net profit for the year grew by 150.1% YoY.
• Net profit margins during the year grew from 18.0% in FY21 to 23.6% in FY22.

SHARE INDIA SECURITIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	4,480	8,565	91.2%
Other income	Rs m	59	146	149.5%
Total Revenues	Rs m	4,538	8,711	92.0%
Gross profit	Rs m	1,270	2,917	129.7%
Depreciation	Rs m	44	92	108.2%
Interest	Rs m	250	316	26.7%
Profit before tax	Rs m	1,034	2,655	156.6%
Tax	Rs m	227	637	179.9%
Profit after tax	Rs m	807	2,018	150.1%
Gross profit margin	%	28.3	34.1
Effective tax rate	%	22.0	24.0
Net profit margin	%	18.0	23.6

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SHARE INDIA SECURITIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 10 billion as compared to Rs 6 billion in FY21, thereby witnessing an increase of 70.2%.
• Current assets rose 64% and stood at Rs 10 billion, while fixed assets rose 92% and stood at Rs 5 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 15 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 72%.

SHARE INDIA SECURITIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	2,804	4,466	59.3
Current Liabilities	Rs m	5,798	9,868	70.2
Long-term Debt	Rs m	0	0	-100.0
Total Liabilities	Rs m	8,535	14,717	72.4
Current assets	Rs m	5,993	9,850	64.3
Fixed Assets	Rs m	2,541	4,867	91.5
Total Assets	Rs m	8,535	14,717	72.4

SHARE INDIA SECURITIES Cash Flow Statement Analysis

• SHARE INDIA SECURITIES's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 46.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -287 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 317 million, an improvement of 195% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 3 billion from the Rs 563 million net cash flows seen during FY21.

SHARE INDIA 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	2,358	3,443	46.0%
Cash Flow from Investing Activities	Rs m	-1,462	-287	-
Cash Flow from Financing Activities	Rs m	-332	317	-
Net Cash Flow	Rs m	563	3,473	516.6%

Current Valuations for SHARE INDIA SECURITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.2, an improvement from the EPS of Rs 25.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,023.5, stands at 11.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.7 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	140.4	268.4
TTM Earnings per share	Rs	25.3	63.2
Diluted earnings per share	Rs	24.8	62.0
Price to Cash Flow	x	19.3	12.2
TTM P/E ratio	x	20.2	11.1
Price / Book Value ratio	x	1.9	5.7
Market Cap	Rs m	5,344	25,670
Dividends per share (Unadj.)	Rs	2.0	6.0

Ratio Analysis for SHARE INDIA SECURITIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY22, from 1.0x 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 improved and stood at 9.4x during FY22, from 5.1x 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 improved and stood at 45.2% during FY22, from 28.8% 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 66.5% during FY22, from 45.8% 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 improved and stood at 15.9% during FY22, from 12.4% 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	1.0	1.0
Debtors’ Days	Days	19	24
Interest coverage	x	5.1	9.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.4	15.9
Return on equity	%	28.8	45.2
Return on capital employed	%	45.8	66.5

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

SHARE INDIA SECURITIES Share Price Performance

Over the last one year, SHARE INDIA SECURITIES share price has moved down from Rs 1,089.0 to Rs 1,023.5, registering a loss of Rs 65.5 or around 6.0%.

Overall, the S&P BSE SENSEX is up 7.7% over the year.

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