Cil Securities Ltd Management Discussions

Industry Structure & Developments

		Membership of Company with Stock Exchange(s)
		Clearing cum Trading Member:				Trading Member
	Cash Market	Future & Options	Mutual Fund Service System	Securities Lending & Borrowing Mechanism	Currency Derivative Segment	Commodities Segment
NSE						-
BSE			-		-	-
MCX	-	-	-	-	-

The Company provide services in diversified Financial Services:

(i) Merchant Banker—Category I

(ii) Registrar & Share Transfer Agent-Category I (iii) Depository Participant - CDSL

(iv) Depository Registrar- CDSL/ NSDL

(v) Providing Broking Services to Retail, high Networth Clients and Institutional Clients

The Company follows all the rules and regulations of the respective exchange(s); Depositories & SEBI.

Opportunities and Threats

The Company being a player in the financial market, the performance of the Company largely depends on the National and Global Capital Markets. Your Company continues to work on cost effective solutions through the application of technology. We believe that implementation of technology can unlock growth for us in the future.

Opportunities

• Regulatory reforms would aid greater participation by all the class of investors.

• Leverage technology to enable best practices and processes.

• Increased retail participation in capital markets.

Threats

• Slowdown in global liquidity flows

• Intense competition from local and global players.

• Unfavorable economic conditions

Segment Wise or Product Wise Performance

The Company carries on Stock Broking which is its core activity, besides undertaking other Capital Market activities. The segment wise performance of the Company is as under:

(Rs. in Lakhs)

SEGMENT	GROSS INCOME
	31st March, 2025	31st March, 2024
Securities Dealings & Broking	879.86	958.85
Merchant Banking	10.35	4.80
Registrar & Share Transfer Agent	59.62	64.24
Demat & Depository	25.21	23.72
Consultancy Fee	7.80	1.78

The key financial ratios are as under:

Particulars	Financial year 2024-25	Financial Year 2023-24	% change	Reasons for change/Explanation
Debtors Turnover Ratios	2.70	3.18	-	The decline in the ratio indicates slower recovery of receivables, due to reduced trading activity and delayed client settlements in a weaker market.
Inventory Turnover Ratio	1.28	1.82	-	The decline in the ratio indicates that inventory was held for a longer period, reflecting reduced transaction volumes and slower movement of f inancial instruments.
Interest Coverage Ratio	-	-	-	-
Current Ratio	2.35	1.93	21.76	The increase is primarily due to higher level of current assets, reflecting an improved short term liquidity position
Debt Equity Ratio	NA	NA	-	Not applicable as the company continues to operate without any significant debt exposure
Operating Profit Margin (%)	29.55	37.88		The decline is primarily attributable to a reduction in turnover, driven by an external market condition. Additionally, fixed operating costs remained elevated year- over-year.
Net Profit Margin (%)	20.94	27.32		Net margins declined due to lower revenues amid subdued market activity, while cost structures remained relatively constant, exerting pressure on overall profitability.
Return on Net Worth (%)	6.57	9.83		The decrease is due to lower net earnings resulting from weak market sentiment and reduced investor participation, impacting return generation on shareholders equity.

Financial Performance with Respect to Operational Performance

During the financial year 2024-25, the Company reported revenue from operations of Rs 984 24 lakhs, a decline of 6.72% from Rs. 1,055.10 lakhs in FY 2023-24. EBIT stood at Rs. 290.85 lakhs (PY: Rs.399.67 lakhs), and EBT was Rs 275.88 lakhs (PY: Rs.384.91 lakhs). Net Profit declined by 28.51%, from Rs.288.31 lakhs to Rs.206.10 lakhs. The decline in performance was mainly due to several factors, including slower GDP growth in India, foreign fund outflow, and rising global inflation and interest rates. These challenges led to lower investor confidence, reduced trading volumes, and less participation from retail investors. Additionally, changes in Tax policies and weaker domestic consumption further affected market activity, particularly in the cash segment.

Despite these market challenges, the Companys disciplined approach to cost management and operational efficiency allowed us to maintain an EBIT margin of 29.55% and a Net Profit Margin of 20.94%, demonstrating resilience in a difficult market environment. We remain committed to optimizing our operations, retaining clients, and strengthening our business to overcome such challenges and build a foundation for future growth.

Outlook

In sync with the uncertainties playing out in the Financial Markets most of the market intermediaries, especially with a predominant Equity Segment focus are facing a very challenging situation currently. As such it is a well-known theme that the Equity Markets, across the Globe, are most sensitive to "Uncertainties" and in the current times we are facing these headwinds of unusual magnitude. Hence, we view this as very challenging situation. However, as a multi decades existing Entity in these business segments, we are geared up much better then several peer players. For instance, we continue to thrust on core skills like technology competency & Research capabilities & we are confident that these virtues will stand us in good stead & stay ahead of competition, although the bigger picture worries remain as realistic threats for the first half of the new Financial Year.

Challenges, Risk, Concern

The Company faces normal business challenges of market competition in its business and needs to continuously seek attractive growth opportunities. The Company adopts suitable business strategies to counter these challenges.

As a part of the overall risk management strategy, the Company consistently insures its assets and generally follows a conservative financial profile by following prudent business practices.

Internal Control System and their adequacy

The Company has a proper and adequate internal control system commensurate with its size and nature of business to meet the following objectives:

• Providing assurance regarding the effectiveness and efficiency of operations;

• Efficient use and safeguarding of resources;

• Compliance with policies, procedures and applicable laws and regulations;

• The systems are IT enabled which facilitate effective checks and tight monitoring of all parameters and control on continuous basis.

The Audit Committee actively reviews the adequacy and effectiveness of internal control systems and suggests improvements for strengthening measures from time to time.

Risk assessment reports received from various departments are reviewed periodically and steps are initiated for elimination whenever needed.

Human Resource Development

The Company has a group of able and experienced employees. The Company believes that the quality of its employees is the key to its success in the long run. The Company continues to have cordial relations with its employees and provides personal development opportunities for all round exposure to them. As on 31^st March, 2025, Company had 32 employees.

	By Order of the Board of Directors of
	CIL SECURITIES LMITED
Registered office
214, Raghava Ratna Towers,	Krishna Kumar Maheshwari
Chirag Ali lane, Abids	Managing Director and CFO
Hyderabad-500 001	DIN: 00223241
Place: Hyderabad
Date: 29th April, 2025