IIFL SECURITIES 2023-24 Annual Report Analysis

Wed, 17 Jul

IIFL 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.

IIFL SECURITIES Income Statement Analysis

• Operating income during the year rose 59.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 90.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 40.4% in FY24 as against 33.8% in FY23.
• Depreciation charges increased by 70.2% and finance costs increased by 96.1% YoY, respectively.
• Other income grew by 176.2% YoY.
• Net profit for the year grew by 105.5% YoY.
• Net profit margins during the year grew from 18.5% in FY23 to 23.8% in FY24.

IIFL SECURITIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,521	21,613	59.8%
Other income	Rs m	270	746	176.2%
Total Revenues	Rs m	13,791	22,359	62.1%
Gross profit	Rs m	4,574	8,723	90.7%
Depreciation	Rs m	668	1,138	70.2%
Interest	Rs m	767	1,505	96.1%
Profit before tax	Rs m	3,409	6,826	100.3%
Tax	Rs m	911	1,693	85.9%
Profit after tax	Rs m	2,498	5,133	105.5%
Gross profit margin	%	33.8	40.4
Effective tax rate	%	26.7	24.8
Net profit margin	%	18.5	23.8

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IIFL SECURITIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 61 billion as compared to Rs 39 billion in FY23, thereby witnessing an increase of 56.6%.
• Current assets rose 56% and stood at Rs 72 billion, while fixed assets rose 9% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 78 billion as against Rs 52 billion during FY23, thereby witnessing a growth of 51%.

IIFL SECURITIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,410	17,720	32.1
Current Liabilities	Rs m	38,877	60,864	56.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	52,071	78,394	50.6
Current assets	Rs m	46,516	72,342	55.5
Fixed Assets	Rs m	5,555	6,052	9.0
Total Assets	Rs m	52,071	78,394	50.6

IIFL SECURITIES Cash Flow Statement Analysis

• IIFL SECURITIES's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -739 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion, an improvement of 246% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -9 billion net cash flows seen during FY23.

IIFL 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	-7,930	-1,176	-
Cash Flow from Investing Activities	Rs m	1,631	-739	-
Cash Flow from Financing Activities	Rs m	-2,955	4,303	-
Net Cash Flow	Rs m	-9,254	2,388	-

Current Valuations for IIFL SECURITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.7, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 190.2, stands at 11.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 5.6 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	44.3	70.2
TTM Earnings per share	Rs	8.2	16.7
Diluted earnings per share	Rs	8.1	16.7
Price to Cash Flow	x	4.9	5.6
TTM P/E ratio	x	6.2	11.4
Price / Book Value ratio	x	1.8	2.0
Market Cap	Rs m	23,546	35,382
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for IIFL SECURITIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 improved and stood at 5.5x during FY24, from 5.4x 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 29.0% during FY24, from 18.6% 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 47.0% during FY24, from 31.1% 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 8.5% during FY24, from 6.3% 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	1.2
Debtors’ Days	Days	14	11
Interest coverage	x	5.4	5.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.3	8.5
Return on equity	%	18.6	29.0
Return on capital employed	%	31.1	47.0

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

IIFL SECURITIES Share Price Performance

Over the last one year, IIFL SECURITIES share price has moved up from Rs 65.5 to Rs 190.2, registering a gain of Rs 124.7 or around 190.4%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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