IIFL FINANCE 2023-24 Annual Report Analysis

Tue, 10 Sep

IIFL FINANCE has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

IIFL FINANCE Income Statement Analysis

• Operating income during the year rose 24.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 63.5% in FY24 as against 63.4% in FY23.
• Depreciation charges increased by 18.5% and finance costs increased by 24.7% YoY, respectively.
• Other income declined by 7.9% YoY.
• Net profit for the year grew by 22.8% YoY.
• Net profit margins during the year declined from 19.4% in FY23 to 19.1% in FY24.

IIFL FINANCE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	82,697	103,228	24.8%
Other income	Rs m	2,636	2,427	-7.9%
Total Revenues	Rs m	85,332	105,656	23.8%
Gross profit	Rs m	52,469	65,575	25.0%
Depreciation	Rs m	1,526	1,808	18.5%
Interest	Rs m	32,454	40,475	24.7%
Profit before tax	Rs m	21,125	25,719	21.7%
Tax	Rs m	5,050	5,977	18.4%
Profit after tax	Rs m	16,076	19,742	22.8%
Gross profit margin	%	63.4	63.5
Effective tax rate	%	23.9	23.2
Net profit margin	%	19.4	19.1

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IIFL FINANCE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 59 billion as compared to Rs 43 billion in FY23, thereby witnessing an increase of 36.7%.
• Long-term debt stood at Rs 441 billion as compared to Rs 382 billion during FY23, a growth of 15.5%.
• Current assets rose 20% and stood at Rs 564 billion, while fixed assets rose 2% and stood at Rs 59 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 623 billion as against Rs 529 billion during FY23, thereby witnessing a growth of 18%.

IIFL FINANCE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	89,824	105,711	17.7
Current Liabilities	Rs m	42,841	58,565	36.7
Long-term Debt	Rs m	381,893	441,245	15.5
Total Liabilities	Rs m	528,801	622,694	17.8
Current assets	Rs m	470,977	563,988	19.7
Fixed Assets	Rs m	57,746	58,706	1.7
Total Assets	Rs m	528,801	622,694	17.8

IIFL FINANCE Cash Flow Statement Analysis

• IIFL FINANCE's cash flow from operating activities (CFO) during FY24 stood at Rs -58 billion, an improvement of 11.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -14 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 60 billion, an improvement of 13% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -12 billion from the Rs -26 billion net cash flows seen during FY23.

IIFL FINANCE Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-52,254	-58,480	-
Cash Flow from Investing Activities	Rs m	-27,160	-13,564	-
Cash Flow from Financing Activities	Rs m	53,613	60,421	12.7%
Net Cash Flow	Rs m	-25,801	-11,623	-

Current Valuations for IIFL FINANCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.7, an improvement from the EPS of Rs 42.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 467.9, stands at 10.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	217.4	270.5
TTM Earnings per share	Rs	42.3	51.7
Diluted earnings per share	Rs	37.9	46.5
Price to Cash Flow	x	11.8	9.0
TTM P/E ratio	x	12.9	10.8
Price / Book Value ratio	x	1.7	1.8
Market Cap	Rs m	156,205	194,103
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for IIFL FINANCE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 9.6x during FY24, from 11.0x during FY23. 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 deteriorated and stood at 1.6x during FY24, from 1.7x during FY23. 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 18.7% during FY24, from 17.9% during FY24. 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 12.1% during FY24, from 11.4% during FY23. 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 9.7% during FY24, from 9.2% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	11.0	9.6
Debtors’ Days	Days	1	0
Interest coverage	x	1.7	1.6
Debt to equity ratio	x	4.3	4.2
Return on assets	%	9.2	9.7
Return on equity	%	17.9	18.7
Return on capital employed	%	11.4	12.1

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

IIFL FINANCE Share Price Performance

Over the last one year, IIFL FINANCE share price has moved down from Rs 613.2 to Rs 467.9, registering a loss of Rs 145.3 or around 23.7%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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