HDFC Securities Annual Reports, Balance Sheet and Financials

HDFC Securities Limited Consolidated Balance Sheet (Rs in Lakhs)

 HDFC Securities Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

 HDFC Securities Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024 and 2025:

Cash Flows from Operating Activities

For the year ending 31st March 2025, the company reported a net cash inflow of ₹2,38,096 lakhs from operating activities, a significant improvement compared to the outflow of ₹2,74,697 lakhs in FY 2023–24. This positive shift is primarily due to better working capital management, including a substantial reduction in loans (₹51,337 lakhs) and an increase in trade payables (₹22,169 lakhs).

The profit before tax increased to ₹1,49,559 lakhs, up from ₹1,27,143 lakhs in the previous year. There were also higher finance costs of ₹78,104 lakhs (up from ₹59,504 lakhs), and positive adjustments such as share-based payments to employees and depreciation & amortisation, adding back non-cash expenses to the cash flow. Tax payments also increased slightly from ₹31,829 lakhs to ₹37,872 lakhs.

Cash Flows from Investing Activities

In FY 2024–25, the company saw a net cash outflow of ₹13,813 lakhs from investing activities, a reversal from the ₹20,704 lakhs inflow in the previous year. This decline is largely due to increased purchases of investments (₹14,434 lakhs) and lower proceeds from the sale of investments, which dropped significantly from ₹24,295 lakhs to ₹4,351 lakhs.

However, proceeds from the sale of property, plant, and equipment remained relatively stable, and interest and rental income continued to contribute marginal inflows.

Cash Flows from Financing Activities

Financing activities for FY 2024–25 reflect a net outflow of ₹2,20,996 lakhs, compared to a net inflow of ₹2,94,594 lakhs in the prior year. This drastic swing is primarily due to a higher redemption of debt securities (₹40,25,000 lakhs), which exceeded the new debt issuance (₹38,66,127 lakhs).

While there was a noticeable increase in securities premium received (₹1,08,405 lakhs), higher interest paid (₹77,705 lakhs) and dividend payments (₹89,834 lakhs) contributed to the overall outflow. The company also experienced a marginal refund from share application money.

Net Cash Movement

Despite the negative cash flow from financing and investing activities, the strong inflows from operations resulted in a net increase in cash and cash equivalents of ₹3,287 lakhs during the year. This brought the year-end cash balance to ₹83,098 lakhs, up from ₹79,811 lakhs at the beginning of the year.

 Financial ratios of HDFC Securities

Current Ratio

The current ratio marginally increased from 1.07 in 2024 to 1.19 in 2025, indicating a slight improvement in the company’s ability to meet short-term obligations with current assets. While the ratio is still modest, it is above 1, which is a minimum benchmark for short-term financial health. It shows that the company has sufficient liquidity but may need to improve its working capital buffer to comfortably manage unforeseen needs.

Debt-Equity Ratio

This ratio declined significantly from 4.70 in 2024 to 2.37 in 2025, reflecting a marked improvement in the company’s capital structure. A high debt-equity ratio indicates a greater reliance on borrowed funds, which increases financial risk. The decline means the company has either reduced its debt or increased equity—likely through retained earnings—leading to a more balanced and less risky capital structure.

Debt Service Coverage Ratio (DSCR)

The DSCR improved slightly from 0.19 to 0.27, though it remains below the ideal benchmark of 1.0. This ratio measures the company’s ability to service debt—both interest and principal—from operating profits. A DSCR below 1 implies that current operating profits are not sufficient to fully cover debt obligations, which may raise concerns for lenders or investors unless future performance improves or refinancing is planned.

Interest Service Coverage Ratio (ISCR)

The ISCR dropped slightly from 3.12 to 2.91, suggesting a modest decline in the company’s ability to cover interest expenses with earnings before interest and taxes (EBIT). Despite the decrease, a ratio above 2 is still strong, indicating that the company earns nearly three times its interest obligations—reflecting sound debt servicing capacity.

Current Liability Ratio

This ratio remained steady at 0.99 across both years, indicating that current liabilities form nearly the entire portion of total liabilities. While not inherently negative, it highlights the company’s dependence on short-term financing. Such a structure may pressure liquidity if not balanced with strong operational cash flows.

Total Debts to Assets Ratio

The ratio improved from 0.68 in 2024 to 0.57 in 2025, showing that the proportion of total assets funded by debt has declined. This reduction enhances the company’s solvency position and reduces credit risk. It’s a positive signal, showing progress toward a more asset-backed, less debt-heavy structure.

Debt Turnover Ratio

This efficiency ratio increased from 2.07 to 2.77, implying that the company is generating more revenue per unit of debt in 2025 compared to the prior year. A higher debt turnover means better utilization of borrowed funds in generating sales, which suggests improved financial efficiency and lower dependence on external borrowings for operations.

Operating Profit Ratio

The operating profit ratio dipped slightly from 48% to 46%, showing a marginal decline in the operating efficiency of the business. While still strong, this drop could be due to increased costs, reduced pricing power, or lower operating leverage. It 's worth monitoring to ensure it doesn 't signal a downward trend in operational control.

Net Profit Margin

The net profit margin also saw a slight decline from 36% to 34%, mirroring the trend seen in operating margins. Though still high, this drop indicates that slightly more costs or tax obligations may have eaten into bottom-line profits. Nonetheless, a 34% margin is excellent, reflecting continued strong profitability.