HDFC Securities Limited has announced its FY24 result. As per result, im during FY24, it has posted strong financial performance in FY 2024, achieving impressive revenue growth and solidifying its position in the competitive financial services sector. The company has demonstrated robust profitability while efficiently managing its operational costs.

Below are the key financial highlights:

1. Revenue Growth :  
   Total revenue from operations surged from ₹1,891.27 crore in FY 2023 to ₹2,660.12 crore in FY 2024, marking a growth of 40.7%. This significant increase underscores the company's ability to expand its market reach and capitalize on higher market activity, resulting in increased revenue from interest and commission-based services.

2. Gross Margins :  
   Gross margins improved in FY 2024, driven by higher fees and commission income, as well as gains in interest income. The company’s ability to manage its core operations effectively has resulted in improved overall profitability despite rising operational costs.

3. Total Expenses :  
   Other expenses rose to ₹1389 crore in FY 2024, up from ₹849 crore in FY 2023, reflecting a 63% increase. This was largely driven by higher operational, technology, and administrative costs as the company scaled its business. However, the overall expense increase was well-managed in comparison to revenue growth.

4. Operating Profit Margin (OPM) :  
   Operating profit margin (OPM) increased from 22.9% in FY 2023 to 26.3% in FY 2024, highlighting improved operational efficiency. The company successfully converted a greater portion of its revenues into operating profits, demonstrating tighter control over costs and increased business activity.

5. Finance Costs :  
   Finance costs jumped to ₹80.05 crore in FY 2024, up from ₹29.59 crore in FY 2023. This significant increase reflects higher borrowings or the cost of maintaining liquidity, which has been managed effectively given the increase in interest income and overall profit margins.

6. EBIT (Earnings Before Interest and Taxes) :  
   EBIT for FY 2024 amounted to ₹701.43 crore, compared to ₹1,040.19 crore in FY 2023, showing a decline due to the sharp rise in finance costs and other operating expenses. Despite this, the company maintained strong profitability from its core operations.

7. Profit Before Tax (PBT) :  
   PBT stood at ₹701.43 crore in FY 2024, down from ₹1,040.19 crore in FY 2023. Although there was a decline, this reflects the company's steady operational performance amidst higher finance costs and investments in growth areas.

8. Profit After Tax (PAT) :  
    Profit after tax (PAT) for FY 2024 was ₹378.89 crore, down from ₹772.22 crore in FY 2023. The reduction in PAT is primarily due to higher finance costs and increased employee benefit expenses. Despite this, the company remained profitable and focused on sustainable growth.

9. Net Profit Margin (NPM) :  
    Net profit margin decreased from 40.8% in FY 2023 to 23.2% in FY 2024. The lower NPM reflects the impact of rising costs, but the company continues to maintain healthy margins due to strong revenue generation from core financial services.

10. Earnings Per Share :  
    Basic EPS was ₹597.42 in FY 2024, a significant rise from ₹489.84 in FY 2023. The decline in EPS is aligned with the lower PAT, yet it still reflects strong shareholder returns.

 Cash flow Analysis 

 1. Operating Activities :
Net cash flow used in operating activities:

- 2024: ₹(27,469.7) crores
- 2023: ₹369.65 crores
- A substantial cash outflow in 2024 indicates operational challenges.

    Major adjustments :
- Decrease in loans: ₹3,277.67 crores.
- Increase in trade payables: ₹1,192.62 crores.
- Increase in trade receivables: ₹893.60 crores.

 2. Investing Activities :
Net cash flow from investing activities:
- 2024: ₹207.04 crores (inflow)
- 2023: ₹(973.39) crores (outflow)

The positive inflow in 2024 comes mainly from:
- Proceeds from the sale of investments: ₹242.95 crores.
- Sale of property, plant, and equipment: ₹74.28 crores.

 3. Financing Activities :
Net cash flow from financing activities:
- 2024: ₹2,945.94 crores (inflow)
- 2023: ₹(322.06) crores (outflow)

The sharp increase is due to:
- Proceeds from the issuance of debt securities: ₹32,478.41 crores in 2024, compared to ₹19,350.95 crores in 2023. 
- Redemption of debt securities: ₹28,200 crores in 2024.
- The company had notable interest payments of ₹590.78 crores and dividend payments of ₹812.46 crores in 2024.

 4. Net Increase in Cash and Cash Equivalents :Net increase in cash and cash equivalents: 
- 2024: ₹406.01 crores
-  2023: ₹(925.81) crores
   - Cash and cash equivalents at the end of 2024 increased to ₹798.11 crores, compared to ₹392.10 crores in 2023.

 The company saw a significant operating cash outflow in 2024, but managed to offset this with strong inflows from investing and financing activities. The reliance on debt issuance played a major role in improving cash reserves, despite the heavy operational outflows.

Market Focus 
HDFC Securities continues to expand its market share by enhancing its product offerings and growing its client base. The company is focused on strengthening relationships with retail investors, high-net-worth individuals, and institutional clients. With a comprehensive suite of financial services, including trading, brokerage, and investment advisory, the company is well-positioned to capitalize on growing market demand.

 Digital Initiatives and Technological Upgrades 

The company has placed significant emphasis on enhancing its digital platform, enabling seamless customer experiences. HDFC Securities continues to invest in its technology infrastructure, ensuring robust trading platforms, mobile applications, and AI-driven advisory tools. This digital transformation is a key driver of its future growth strategy, catering to the increasing demand for tech-enabled financial services.

HDFC Securities has delivered a commendable financial performance in FY 2024. Despite challenges such as rising finance costs, the company continues to show strong revenue growth and operational efficiency. By focusing on its core strengths—digital innovation, customer engagement, and a comprehensive range of financial services—HDFC Securities is poised for sustained growth in the coming years.