INDIANIVESH 2021-22 Annual Report Analysis

Thu, 31 Mar

INDIANIVESH has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during the year 2021-22.

INDIANIVESH Income Statement Analysis

• Interest income during the year fell 19.0% on a year-on-year (YoY) basis.
• Interest expenses were down by 40.8% YoY during the same period.
• Operating expenses increased by 2.3% YoY during the year.
• The company's net interest income (NII) increased by 56.5% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at -19.0% in FY22 as against -50.3% in FY21.
• Other income declined by 64.7% YoY during the year.
• Net profit for the year increased by 68.3% YoY.
• Net profit margins during the year increased to -69.0% in FY22 from -176.3% in FY21.

INDIANIVESH Income Statement – 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Interest Income	Rs m	70	56	-19.0%
Other Income	Rs m	91	32	-64.7%
Interest Expense	Rs m	167	99	-40.8%
Net Interest Income	Rs m	-97	-42	56.5%
Operating Expense	Rs m	54	55	2.3%
Pre-provision Operating Profit	Rs m	-60	-65	-8.3%
Provisions & Contingencies	Rs m	12,049	1,891	-84.3%
Profit before tax	Rs m	-97	-78	19.1%
Tax	Rs m	32	-39	-224.7%
Profit after tax	Rs m	-123	-39	68.3%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	-50.3	-19.0
Net profit margin	%	-176.3	-69.0

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INDIANIVESH Balance Sheet Analysis

• The company's deposits during FY22 stood at Rs 0 m as compared to Rs 0 m in FY21, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY21, a rise of 0.0%.
• Cost of deposits for INDIANIVESH rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 223 m during the year from Rs 193 m in FY21.
• Borrowing stood at Rs 1.2 bn, a fall of 25.5% as compared to previous year.
• Overall, the total assets and liabilities for FY22 stood at Rs 856 m as against Rs 2,666 m during FY21, thereby witnessing a fall of 67.9%.

INDIANIVESH Balance Sheet – as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	-214	-338	-58.0%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	193	223	15.5%
Borrowings	Rs m	1,621	1,209	-25.5%
Total Assets	Rs m	2,666	856	-67.9%

Current Valuations for INDIANIVESH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.0, a decline from the EPS of Rs -3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 17.5, stands at -17.1 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at -2.0 times, while the price to income ratio stands at 11.8 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Income per share (Unadj.)	Rs	1.8	1.5
Earnings per share (Unadj.)	Rs	-3.3	-1.0
Diluted earnings per share	Rs	-3.3	-1.0
Avg P/E ratio	Rs	-7.1	-17.1
Avg P/ABV ratio	Rs	-1.6	-2.0
Avg Market Cap	Rs	878	663
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for INDIANIVESH

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY22, from 0.0x during FY21. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio increased and stood at -3.58x during FY22, from -7.58x during FY21. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): INDIANIVESH's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2022 as compared to 0.0% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company deteriorated and stood at 11.5% during FY22, from 57.4% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at -4.55% during FY22, from -4.60% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company deteriorated and stood at 1.78% during FY22, from 3.61% during FY21. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. INDIANIVESH's gross NPA ratio stood at 0.0% as of 31 March 2022 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of INDIANIVESH was 0.0% in financial year 2022. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	-7.6	-3.6
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	0.0	0.0
Return on Equity	%	57.4	11.5
Return on Assets	%	-4.6	-4.5
Return on Capital Employed	%	3.6	1.8
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.0	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

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

INDIANIVESH Share Price Performance

Over the last one year, INDIANIVESH share price has moved up from Rs 9.3 to Rs 17.5, registering a gain of Rs 8.3 or around 89.7%.

Overall, the S&P BSE SENSEX is up 16.8% over the year.

(To know more, you can check out historical annual results for INDIANIVESH here and quarterly results for INDIANIVESH here)