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SBI Life Insurance Key Financial Ratios

NSE:SBILIFE | FINANCIAL INSTITUTION

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Profitability Margins

2-year trend showing gross, operating, and net profit margins

FY 2019 - FY 2020

SBI Life Insurance's net profit margin of 73.1% in FY2020 reflects excellent profitability, with operating margin at 70.9%.

Understanding Profitability Margins

In FY 2020, SBI Life Insurance posted an operating margin of 70.9%, a net margin of 73.1%. Operating Margin = EBIT / Revenue; Net Margin = Net Income / Revenue. Typical healthy ranges: Operating 10-20%, Net 5-10%+. Consistent or improving margins indicate strong competitive positioning.

Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2019 - FY 2020

SBI Life Insurance's revenue grew 28.2% to 19.46B and net profit grew 7.2% to 14.22B YoY in FY2020, indicating strong business momentum.

Understanding Company Performance

In FY 2020, SBI Life Insurance's revenue grew by 28.2% year-over-year. Revenue is total income from operations. Gross Profit is revenue minus cost of goods. Net Profit is the bottom line after all expenses. Consistent growth across all three signals a healthy, expanding business.

Return on Equity (ROE)

2-year trend showing shareholder returns

FY 2019 - FY 2020

SBI Life Insurance's ROE of 16.3% in FY2020 indicates good shareholder returns.

Understanding Return on Equity (ROE)

In FY 2020, SBI Life Insurance reported an ROE of 16.3%. ROE = (Net Income / Shareholders' Equity) x 100. Measures how efficiently the company turns equity into profit. Above 15% is generally strong; above 25% is excellent. Very high ROE may signal high leverage — check alongside debt levels.

Net NPA Ratio

2-year trend showing asset quality

FY 2019 - FY 2020

SBI Life Insurance's net NPA ratio of 0.0% in FY2020 indicates strong asset quality.

Understanding Net NPA Ratio

In FY 2020, SBI Life Insurance reported a net NPA ratio of 0.00%. Net NPA Ratio measures bad loans (after provisions) as a percentage of total loans. Below 2% is healthy for NBFCs; above 3-4% signals stress. A declining trend indicates improving asset quality.

Net Income vs Free Cash Flow

2-year trend comparing profitability with cash generation

FY 2019 - FY 2020

Understanding Net Income vs Free Cash Flow

In FY 2020, SBI Life Insurance's free cash flow exceeded net income. Free Cash Flow = Operating Cash Flow - Capital Expenditure. For NBFCs, FCF is typically negative because cash outflows for loan disbursements are part of core operations, not traditional capex. A negative FCF here does not signal financial weakness — it usually reflects a growing loan book.

Net Income vs Operating Cash Flow

2-year trend comparing profitability with cash from operations

FY 2019 - FY 2020

Understanding Net Income vs Operating Cash Flow

In FY 2020, SBI Life Insurance's operating cash flow exceeded net income. Operating Cash Flow is cash generated from core operations. For NBFCs, OCF is often negative because loan disbursements (a core activity) consume cash. Negative OCF alongside rising net income typically reflects aggressive loan book growth, not operational weakness.

Leverage Ratios

Measure a company's financial leverage, liquidity, and ability to meet financial obligations.

Current Ratio Analysis

2-year trend showing short-term liquidity position

FY 2019 - FY 2020

Understanding Current Ratio

In FY 2020, SBI Life Insurance reported a current ratio of 1.93. Current Ratio = Current Assets / Current Liabilities. For NBFCs, a low current ratio is normal because large short-term borrowings are part of the business model. Liquidity is managed through Asset-Liability Management (ALM), not by maintaining high current ratios.

Interest Coverage Ratio Analysis

2-year trend showing ability to service debt

FY 2019 - FY 2020

Understanding Interest Coverage Ratio

Interest Coverage = EBIT / Interest Expense. For NBFCs, interest expense is a core operating cost — their business model relies on the spread between interest earned and interest paid. A low ICR here does not indicate debt stress.

Debt-to-Equity Ratio Analysis

2-year trend showing financial leverage and capital structure

FY 2019 - FY 2020

SBI Life Insurance's debt-to-equity ratio of 8.53x in FY2020 reflects high leverage that may stretch capital adequacy limits.

Understanding Debt-to-Equity Ratio

In FY 2020, SBI Life Insurance reported a debt-to-equity ratio of 8.53. Debt-to-Equity = Total Debt / Total Equity. NBFCs naturally operate with high leverage (D/E of 3-7x is typical) because borrowing to lend is their core business. A high D/E here does not indicate financial distress — compare with NBFC peers for context.

Total Debt Analysis

2-year trend showing total debt with year-over-year changes

FY 2019 - FY 2020

SBI Life Insurance's borrowings grew 14.8% YoY in FY2020, indicating borrowing growth likely driven by loan book expansion.

Understanding Total Debt

In FY 2020, SBI Life Insurance's total debt increased by 14.8% year-over-year. Total Debt includes short-term debt, long-term loans, debentures, and capital leases. For NBFCs, rising debt typically reflects loan book growth, not financial distress. Compare debt growth with loan book and revenue growth for context.

Shares Outstanding

Year-over-year change in diluted shares outstanding

SBI Life Insurance's diluted shares remained virtually unchanged in FY2020.

Over 2 years (FY2019–FY2020), diluted shares remained essentially unchanged at 1.00B.

Understanding Shares Outstanding

In FY 2020, SBI Life Insurance's diluted shares remained flat by 0.0% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2020