SIL INVESTMENTS 2023-24 Annual Report Analysis

Mon, 8 Jul

SIL INVESTMENTS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

SIL INVESTMENTS Income Statement Analysis

• Interest income during the year rose 16.4% on a year-on-year (YoY) basis.
• Interest expenses were down by 88.2% YoY during the same period.
• Operating expenses increased by 60.7% YoY during the year.
• The company's net interest income (NII) increased by 26.0% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 2.2% in FY24 as against 2.3% in FY23.
• Other income declined by 43.4% YoY during the year.
• Net profit for the year increased by 4.8% YoY.
• Net profit margins during the year declined to 57.7% in FY24 from 64.1% in FY23.

SIL INVESTMENTS Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	438	510	16.4%
Other Income	Rs m	59	33	-43.4%
Interest Expense	Rs m	37	4	-88.2%
Net Interest Income	Rs m	401	505	26.0%
Operating Expense	Rs m	67	107	60.7%
Pre-provision Operating Profit	Rs m	393	431	9.7%
Provisions & Contingencies	Rs m	53	115	116.2%
Profit before tax	Rs m	375	414	10.3%
Tax	Rs m	89	114	27.4%
Profit after tax	Rs m	281	294	4.8%
Minority Interest	Rs m	-5	-6	-14.4%
Net Interest Margin	%	2.3	2.2
Net profit margin	%	64.1	57.7

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SIL INVESTMENTS Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY23, a rise of 0.0%.
• Cost of deposits for SIL INVESTMENTS rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 22.5 bn during the year from Rs 17.2 bn in FY23.
• Borrowing stood at Rs 0 m, a growth of 0.0% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 24.2 bn as against Rs 18.9 bn during FY23, thereby witnessing a rise of 28.3%.

SIL INVESTMENTS Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,985	21,972	29.4%
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	17,172	22,456	30.8%
Borrowings	Rs m	0	0	0.0%
Total Assets	Rs m	18,889	24,227	28.3%

Current Valuations for SIL INVESTMENTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.8, an improvement from the EPS of Rs 26.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 592.0, stands at 15.4 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 0.3 times, while the price to income ratio stands at 8.9 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	41.3	48.1
Earnings per share (Unadj.)	Rs	26.5	27.8
Diluted earnings per share	Rs	26.5	27.8
Avg P/E ratio	Rs	12.7	15.4
Avg P/ABV ratio	Rs	0.2	0.3
Avg Market Cap	Rs	3,571	4,520
Dividends per share (Unadj.)	Rs	2.50	2.50

Ratio Analysis for SIL INVESTMENTS

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY24, from 0.0x during FY23. 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 0.00x during FY24, from 0.00x during FY23. 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): SIL INVESTMENTS's capital adequacy ratio (CAR) was at 151.3% as on 31 March 2024 as compared to 112.9% 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 1.3% during FY24, from 1.7% during FY23. 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 deteriorated and stood at 1.21% during FY24, from 1.49% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 2.12% during FY24, from 1.99% during FY23. 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. SIL INVESTMENTS's gross NPA ratio stood at 0.0% as of 31 March 2024 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 SIL INVESTMENTS was 0.0% in financial year 2024. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	112.9	151.3
Return on Equity	%	1.7	1.3
Return on Assets	%	1.5	1.2
Return on Capital Employed	%	2.0	2.1
% 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 SIL INVESTMENTS has performed over the last 5 years, please visit here.

SIL INVESTMENTS Share Price Performance

Over the last one year, SIL INVESTMENTS share price has moved up from Rs 325.0 to Rs 592.0, registering a gain of Rs 267.1 or around 82.2%.

Overall, the S&P BSE SENSEX is up 22.1% over the year.

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