ICICI SECURITIES 2023-24 Annual Report Analysis

Wed, 28 Aug

ICICI SECURITIES 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.

ICICI SECURITIES Income Statement Analysis

• Operating income during the year rose 47.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 60.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 66.8% in FY24 as against 61.6% in FY23.
• Depreciation charges increased by 45.1% and finance costs increased by 84.0% YoY, respectively.
• Other income declined by 80.6% YoY.
• Net profit for the year grew by 51.8% YoY.
• Net profit margins during the year grew from 32.7% in FY23 to 33.6% in FY24.

ICICI SECURITIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	34,158	50,492	47.8%
Other income	Rs m	97	19	-80.6%
Total Revenues	Rs m	34,255	50,511	47.5%
Gross profit	Rs m	21,028	33,715	60.3%
Depreciation	Rs m	751	1,089	45.1%
Interest	Rs m	5,363	9,870	84.0%
Profit before tax	Rs m	15,011	22,775	51.7%
Tax	Rs m	3,835	5,808	51.5%
Profit after tax	Rs m	11,176	16,967	51.8%
Gross profit margin	%	61.6	66.8
Effective tax rate	%	25.5	25.5
Net profit margin	%	32.7	33.6

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ICICI SECURITIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 222 billion as compared to Rs 127 billion in FY23, thereby witnessing an increase of 74.7%.
• Current assets rose 68% and stood at Rs 253 billion, while fixed assets rose 9% and stood at Rs 37 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 290 billion as against Rs 184 billion during FY23, thereby witnessing a growth of 57%.

ICICI SECURITIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	28,039	38,365	36.8
Current Liabilities	Rs m	126,986	221,891	74.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	184,455	290,168	57.3
Current assets	Rs m	150,537	253,188	68.2
Fixed Assets	Rs m	33,918	36,980	9.0
Total Assets	Rs m	184,455	290,168	57.3

ICICI SECURITIES Cash Flow Statement Analysis

• ICICI SECURITIES's cash flow from operating activities (CFO) during FY24 stood at Rs -56 billion, an improvement of 733.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 105.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 57 billion, an improvement of 2,049% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs -5 billion net cash flows seen during FY23.

ICICI SECURITIES 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	-6,742	-56,211	-
Cash Flow from Investing Activities	Rs m	-1,248	-2,569	-
Cash Flow from Financing Activities	Rs m	2,660	57,149	2,048.5%
Net Cash Flow	Rs m	-5,330	-1,631	-

Current Valuations for ICICI SECURITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.5, an improvement from the EPS of Rs 34.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 828.3, stands at 13.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 5.3 times.
• The company's price to cash flow (P/CF) ratio stood at 11.6 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	105.8	156.2
TTM Earnings per share	Rs	34.6	52.5
Diluted earnings per share	Rs	34.5	52.4
Price to Cash Flow	x	11.6	11.6
TTM P/E ratio	x	12.4	13.7
Price / Book Value ratio	x	6.1	5.4
Market Cap	Rs m	171,063	209,015
Dividends per share (Unadj.)	Rs	19.0	29.0

Ratio Analysis for ICICI SECURITIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.2x 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 3.3x during FY24, from 3.8x 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 44.2% during FY24, from 39.9% 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 85.1% during FY24, from 72.7% 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 9.2% during FY24, from 9.0% 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	1.2	1.1
Debtors’ Days	Days	83	69
Interest coverage	x	3.8	3.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.0	9.2
Return on equity	%	39.9	44.2
Return on capital employed	%	72.7	85.1

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

ICICI SECURITIES Share Price Performance

Over the last one year, ICICI SECURITIES share price has moved up from Rs 622.8 to Rs 828.3, registering a gain of Rs 205.6 or around 33.0%.

Overall, the S&P BSE SENSEX is up 26.1% over the year.

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