Share India Securities Limited (BSE: 540725) (SISL, NSE: SHAREINDIA), one of India’s leading tech based financial conglomerate announced a strong set of financial results for the quarter and year ended March 31st 2021 on Tuesday, May 25, 2020. Share India’s reported it’s highest ever PAT of INR 80.7cr with EPS of 25.3 for FY21. PAT margin remain stable at 18%. Final dividend of INR 0.5 declared to take full year dividend to INR2.
SISL is a key player in Indian derivative market segment with ~7% share of option premium turnover and 3% of future turnover in NSE. SISL over last few years have diversified into NBFC, Insurance Broking and Wealth Management. Share India is a pioneer when it comes to technology and has maintained its potion because of constant innovation and R&D. All its platforms are machine learning enabled and based on in-house technology.
Performance Highlights (Consolidated):
- Consolidated PAT at INR 80.7cr for FY21 increased 98% YoY; Q4 FY21 PAT at INR 35.8cr was up 114% YoY and 103% QoQ
- Consolidated Revenue for FY21 at INR 448cr increased 98% YoY; Q4 FY21 Revenue at INR 191cr was up 123% YoY and 83% QoQ
- EPS for FY21 was 25.31 (increased from 12.8 in FY20); EPS for Q4 FY21 was 11.23 (Q4FY20 5.24, Q3FY21 5.52)
- RoAE was 34.1% for FY21
Performance Highlights (Standalone):
- Standalone PAT for FY21 at INR 67.2cr 101% YoY; Q4 FY21 PAT at INR 29.7cr was up 102% YoY and 96% QoQ
- Standalone Revenue for FY21 at INR 383cr increased 83% YoY; Q4 FY21 Revenue at INR 150cr was up 83% YoY and 69% QoQ
- EPS for FY21 was 21.1 (increased from 10.5 in FY20); EPS for Q4 FY21 was 9.3 (Q4FY20 4.6, Q3FY21 4.76)
- RoAE was 30% for FY21
- Broking: Cash ADTO increased 57% to INR ~1,350cr, F&O ADTO increased 51% to INR ~4,350cr for FY21; 142 new AP/branches added in FY21. Client based broking revenue increased more than 1x in FY21 with revenue share of more than 20%.
- NBFC: Loan book at INR 78cr (FY20 INR 61cr); strong ground network led to minimal credit cost due to Covid outbreak. Branch count – 14 for Mar’21.
- Insurance Broking/Wealth Management: No. of lives covered – 22,955 (FY21), Insurance premium received – INR 18cr, AUM – INR 160cr
Commenting on the successful results, Mr. Kamlesh Vadilal Shah, Managing Director, SISL, said:
“FY 21 was a landmark year for Share India in many ways, including expansion of product portfolio, synergy in operation post acquisition of Total Securities Limited, listing on main board of NSE in addition to BSE, acquisition of Total Commodities Limited, expanding operations in overseas market through W.O.S. in Singapore and the list may go on and on.
On financial performance part – we had a memorable year whereby our revenue and profits grew by ~100 % compared to previous year. We are well placed for future consolidation in industry and maintain market leadership. We consider this as new beginning and with focused strategy which gives us confidence for a stronger year ahead. We are optimistic to achieve ~35% CAGR in revenue for next three years. Our focus will continue to be on technology including artificial intelligence. We are now known as full fledge fintech financial service provider.”
Mr. Sachin Gupta, CEO and Whole Time Director, said:
“This year is a testimony to our strong focus on technology led by constant innovation and R&D. Our client based broking revenue increased more than 1x to INR 82cr. There was an additional INR 7 mn software charges. We have grown from a traditional stock broker to now a hi-tech financial service provider. Company leverages on the artificial intelligence & financial technology based products to deliver superior products to our clients.
In alignment to our vision to be a complete financial service provider, we expanded our operations this year in the NBFC business, insurance broking, merchant banking and mutual funds distribution as well. In the upcoming times, we expect to multiply our growth and have strong foothold in being a complete financial service provider. We expect to maintain our current return ratios in our future growth as well. We are committed to continue on our strategic priorities to maximize shareholders value and thank all our stakeholders for their continuous support.”