IIFL

CORPORATE/RESULTS

IIFL Consolidated Profit after Tax^* at `67 cr for Q2FY13

Up 27% qoq, up 199% yoy

Results (consolidated) for the quarter ended September 30, 2012

Ö  Income for the quarter at `653 cr, up 12% qoq, up 59% yoy

Ö  Profit before Tax at `96 cr, up 17% qoq, up 172% yoy

Ö  Profit after Tax^* at `67 cr, up 27% qoq, up 199% yoy

Summary consolidated financials           

                                                                                                                                     

(` Mn) ` Crores	Quarter ended         Sep 30, 2012	Quarter ended            June 30, 2012	Quarter ended         Sep 30, 2011	% Quarter-on-Quarter	% Year-on- Year
Income	653.2	582.6	410.9	12%	59%
EBIDTA	312.5	292.0	161.1	7%	94%
Profit Before Tax	95.8	82.1	352.8	17%	172%
Profit After Tax*	67.2	52.2	22.5	27%	199%

*Before providing for Minority interest, PAT after Minority interest is ` 66 cr

Mr Nirmal Jain, Chairman, IIFL, commenting on the financial results of Q2FY13 said, “We continue to consolidate our position in all our core businesses. During the quarter ended September 2012, consumer finance, financial products distribution and advisory businesses were the key growth drivers. With higher volumes, we derived benefits of operating leverage as well. Government's recent reforms initiatives have turned the sentiment positive and we look forward to the second half with renewed optimism.”

Equities and Commodities Broking

Equities, broking and related revenue was `134 cr in Q2FY13, up 7% qoq, down 4% yoy. Our average daily turnover of equity during the period was `4,355 cr, down 4% qoq and down 17% yoy. Average daily volumes in our commodities business stood at `2,254 cr during the quarter, up 51% on a qoq basis and up 27% yoy. Average daily volume for the currency business was `722 cr for Q2FY13

Our in-depth, thematic research continues to get positive response from domestic as well as global fund managers. Our recent research reports include Indian Cement Sector, covering mid-cap cement companies in detail; India – Economics: detailed report on India’s worsening external balance; Jubliant Foodworks: a company report etc.

Financing and Investment

The NBFC subsidiary’s loan portfolio increased to `7,849 cr as on September 30, 2012. Our loan book is entirely secured. In Q2FY13, portfolio comprised secured lending like mortgages, capital market products, gold loans and medical equipment financing. Gold and Mortgage/LAP loans forms 37% and 35% respectively of financial assets of our NBFC company as at end of September 2012 quarter. We continue to maintain high quality of assets as evident in Gross NPA on our overall portfolio at 0.6% and Net NPA is 0.3%. Capital adequacy at the quarter end was a robust 21%.

Distribution and Marketing

During the period under review, our income from this segment was `59 cr, up 24% qoq, up 41% yoy. In this segment, distribution of life insurance, mutual fund and portfolio advisory are major contributors to income.

Investment Banking

IIFL was sole financial advisor to Cox & Kings for $138 mn investment by Citi Venture Capital International (CVCI) in its UK subsidiary. In view of improved market sentiments, outlook for Equity Capital Markets (ECM) and M&A is expected to improve.

Issue of Unsecured Redeemable NCDs `500 cr

The NBFC subsidiary of IIFL, India Infoline Finance Limited, successfully completed its bond issue of Un-Secured Redeemable Non-Convertible Debentures, considered as Tier II capital. The NCDs were rated ‘[ICRA]AA- (stable)’ by ICRA and ‘CRISIL AA-/Stable’ by CRISIL. The issue received an overwhelming response and got subscribed over 2.36 times the base issue of `250 cr. All categories were oversubscribed and over 25,000 applications received from all over the country. The company exercised its green-shoe option to retain over-subscription upto `250 cr, thus raising an aggregate of `500 cr.

Awards and Accolades

IIFL won the ‘Best Broker with Global Presence’ award at the BSE IPF – D&B Equity Broking Awards 2012.

The wealth subsidiary of India Infoline Ltd, IIFL Wealth Private Ltd, was awarded the ‘Best Wealth Management House – India’ at the The Asset Triple A Investment Awards, 2012. The Asset Triple A Awards are Asia’s defining recognition for excellence in the industry. This is the second consecutive year that IIFL has won both these awards.

About IIFL

IIFL (India Infoline group), comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian financial services space. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small savings instruments. It owns and manages the website, www.indiainfoline.com, which is one of India’s leading online destinations for personal finance, stock markets, economy and business.

IIFL has received ‘Best Equity Broking House with Global Presence’ at the D&B Equity Broking Awards 2012 as well as for 2011. IIFL Wealth was awarded ‘Best Wealth Management House – India’ at The Asset Triple A Investment Awards, 2012 as well as for 2011. IIFL has also been awarded as the ‘Best Broker in India, 2011’, by FinanceAsia and the 'Best Equity Broker of the Year, 2011' by Bloomberg UTV. A forerunner in the field of equity research, IIFL’s research is acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’. IIFL research is available not just over the Internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst one of the most read Indian brokers.

A network of over 4,000 business locations spread over more than 900 cities and towns across India facilitates the smooth acquisition and servicing of a large customer base. All our offices are connected with the corporate office in Mumbai with cutting edge networking technology. The group caters to a customer base of over a million customers, over a variety of mediums viz. online, over the phone and at our branches.