SHARE INDIA SECURITIES 2023-24 Annual Report Analysis

Wed, 11 Sep

SHARE INDIA 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.

SHARE INDIA SECURITIES Income Statement Analysis

• Operating income during the year rose 36.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 44.2% in FY24 as against 45.4% in FY23.
• Depreciation charges increased by 16.7% and finance costs increased by 56.2% YoY, respectively.
• Other income declined by 48.3% YoY.
• Net profit for the year grew by 28.8% YoY.
• Net profit margins during the year declined from 30.4% in FY23 to 28.7% in FY24.

SHARE INDIA SECURITIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,882	14,828	36.3%
Other income	Rs m	115	59	-48.3%
Total Revenues	Rs m	10,997	14,887	35.4%
Gross profit	Rs m	4,942	6,561	32.8%
Depreciation	Rs m	121	141	16.7%
Interest	Rs m	577	901	56.2%
Profit before tax	Rs m	4,359	5,578	28.0%
Tax	Rs m	1,053	1,321	25.5%
Profit after tax	Rs m	3,307	4,258	28.8%
Gross profit margin	%	45.4	44.2
Effective tax rate	%	24.1	23.7
Net profit margin	%	30.4	28.7

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SHARE INDIA SECURITIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 34.3%.
• Current assets rose 50% and stood at Rs 28 billion, while fixed assets rose 163% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 30 billion as against Rs 19 billion during FY23, thereby witnessing a growth of 55%.

SHARE INDIA SECURITIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,000	16,380	104.8
Current Liabilities	Rs m	9,228	12,390	34.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,438	30,038	54.5
Current assets	Rs m	18,699	28,095	50.2
Fixed Assets	Rs m	739	1,943	162.9
Total Assets	Rs m	19,438	30,038	54.5

SHARE INDIA SECURITIES Cash Flow Statement Analysis

• SHARE INDIA SECURITIES's cash flow from operating activities (CFO) during FY24 stood at Rs -3 billion, an improvement of 83.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -494 million, an improvement of 232.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion, an improvement of 116% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 159 million from the Rs -102 million net cash flows seen during FY23.

SHARE INDIA 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	-1,695	-3,105	-
Cash Flow from Investing Activities	Rs m	-149	-494	-
Cash Flow from Financing Activities	Rs m	1,742	3,758	115.7%
Net Cash Flow	Rs m	-102	159	-

Current Valuations for SHARE INDIA SECURITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 111.2, an improvement from the EPS of Rs 101.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 295.0, stands at 14.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 2.7 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	334.4	387.3
TTM Earnings per share	Rs	101.6	111.2
Diluted earnings per share	Rs	15.4	19.9
Price to Cash Flow	x	13.2	2.7
TTM P/E ratio	x	13.7	14.2
Price / Book Value ratio	x	5.0	0.7
Market Cap	Rs m	40,054	11,839
Dividends per share (Unadj.)	Rs	1.7	1.8

Ratio Analysis for SHARE INDIA SECURITIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 2.0x 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 7.2x during FY24, from 8.6x 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 declined and down at 26.0% during FY24, from 41.3% 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 declined and down at 39.6% during FY24, from 61.7% 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 declined and down at 17.2% during FY24, from 20.0% 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	2.0	2.3
Debtors’ Days	Days	127	35
Interest coverage	x	8.6	7.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.0	17.2
Return on equity	%	41.3	26.0
Return on capital employed	%	61.7	39.6

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 up from Rs 272.7 to Rs 295.0, registering a gain of Rs 22.3 or around 8.2%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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