|
| India Infoline FY09 income and net profit at Rs 9,630 mn and Rs 1,448 mn |
| Announcement / Corporate Apr 28, 2009, 20:42 IST |
|
Results (consolidated) for the quarter and year ended March 31, 2009
- Income for the year at Rs9,630.9 mn, down 5.9% yoy
- Profit before Tax for the year at Rs2,194.7 mn, down 22.4% yoy
- EBIDTA margins in FY09 at 30.3% as compared to 39.3% in FY08
Quarter ended Mar.31, 2009 Quarter ended Mar.31, 2008 %; Year-on-year Year ended Mar.31, 2009 Year ended Mar.31, 2008 %
Year-on-year Income 1,910.5 3,842.1 (50.3) 9,630.9 10,235.80 (5.9) EBIDTA 436.5 1,677.0 (74.0) 2,922.6 4,022.10 (27.3) Profit Before Tax 290.8 927.3 (68.6) 2,194.8 2827.5 (22.4) Profit After Tax 252.7 658.8 (61.6) 1,448.1 1598.7 (9.4) Mr Nirmal Jain, Chairman, India Infoline, commented on the financial results “During 2008 -09, our business faced strong headwinds. In that backdrop, I look back at the performance with great satisfaction. Our company has one of the most robust balance sheets in the sector. But what I am pleased to note is that during last year, we made extra- ordinary progress on things beyond balance sheet, such as our brand image, productivity of people, operational efficiency, service quality and our product offerings.”
Equities
The market share on the NSE for the year under review has grown by 11% yoy to 3.76% as compared to 3.40% in the previous year. Our average daily volumes for the equity business stood at Rs22.37 bn as compared to Rs24.31 bn in FY08, a decrease of 8% yoy. Our broking customer base grew by 36% to about 0.6 mn customers at the end of FY09. Average daily volumes in our commodities broking business were Rs2.63 bn for FY09 which was an increase of 47% as compared to Rs1.80 bn in FY08. IIFL, our institutional equities arm, has scaled up its research capabilities as well as client base significantly. IIFL’s client list encompasses practically all active large local institutions as well as global institutional investors in India. IIFL is already one of the leading institutional players in India. IIFL’s international research division, based out of Singapore, launched its maiden international research report. The report, a part of our India China (INCH) coverage, is captioned ‘Two Bright Spots in a Gloomy World’. It has a compilation of facts, pictures and analysis of thirty three different facets for these two most promising long term investment destinations. The report was received very well by institutional investing community.Our investment banking business was affected by the overall slowdown in capital markets. There has been industry wide drying up of deals and we were no exception. However with a longer-term perspective, we continue to retain the team and expect that improved market sentiment will lead to resuscitation of the market.
Life Insurance distribution
During 2008-09, the weighted annualized premium mobilized for ICICI Prudential, which forms the dominant part of our Insurance distribution business, was Rs2.66 bn in FY09, about 40% lower than that in the previous year 2007-08. The decline was primarily on account of adverse market conditions and restructuring of the business. During the year, we also managed the transition from a corporate agency to an Insurance broker, the license for which was received in the third quarter of the last fiscal. We have already commenced distribution of Life Insurance products for Max New York Life, MetLife and LIC and are tying up with other major insurance companies as well.
Retail consumer finance
The total lending portfolio stood at Rs10.17 bn as at end March 2009, as against Rs9.37 bn last year. In view of adverse credit market conditions, we had scaled down origination of fresh assets since September 2008. The non performing assets for the portfolio are less than 1%. Despite adverse conditions in credit markets, our low NPA levels reaffirm our sound credit and underwriting policies and processes. We received the registration for our Housing Finance subsidiary India Infoline Housing Finance Ltd from National Housing Bank (NHB) in this quarter, which will help us in raising resources and will also aid in optimizing our tax liabilities. Mr Apul Nayyar, CEO, Moneyline said,”While the portfolio has been exhibiting a steady performance, the economic environment does require the business to be cautious. Our processes, systems & manpower continue to ensure best-in-class offerings to our customers.”
Wealth management
In 2008-09, our wealth management business, has forged many new relationships. The business has created a foothold in ten cities across four countries, driven strongly by its product innovation. This has seen the team achieve various successes including structured note issuances and high volumes in both primary and secondary bond markets, specifically in NABARD bonds. Its ‘Family Office’ proposition reiterates the team’s resolve to provide unbiased advice to clients, avoid product-push-based selling and limit the risk in client portfolios. The team has also built a robust technology platform that enables External Asset Managers to use IIFL’s products and back-office operations while independently managing their client portfolios.Karan Bhagat, CEO, IIFL Wealth said, “The team looks forward to gain market share and consolidate its position in the current adverse phase in equity market. With its focus on transparency and unbiased advice, it is well on its way to become the pre-eminent advisory firm for private wealth clients in India.”
Asset Management business
During the third quarter of FY09, the company received the in-principle approval from SEBI towards sponsoring a Mutual Fund. The company is now in the process of setting up a Trustee company and an Asset Management Company.
Buyback of shares
The Company commenced Buy-back of Equity Shares through open market on Stock Exchanges. The Board had earmarked Rs98.91 crores towards this buyback through stock exchanges upto a maximum price of Rs43.20 per share, i.e. total utilization of Rs10.80 crores for buy back.As on March 31st, 2009, pursuant to the resolution of the Board of Directors passed at the Meeting held on November 29, 2008 and Public Announcement released on December 5, 2008, the Company had bought Back 25,57,915 equity Shares of (par value) Rs2/- each.
Awards and accolades
The Company was awarded the ‘Best Broker- India’ award by FinanceAsia. This was a result of FinanceAsia’s annual look at the best financial services firms in each country around Asia for the period from June 2007 to May 2008. Besides, in a poll conducted by AsiaMoney, we were adjudged as the ‘Most improved brokerage’ in India. These awards are a further testament to our path-breaking research, superior service and increased visibility.
Launch of branding campaign- Things beyond money
Ten years ago, we had launched India Infoline website with a tag line ‘It’s all about money, honey!’; a catch phrase that captured the essence of our business, which revolves around advising and managing money. However, it was felt that the brand positioning did not capture the emotional aspects of need for earning and managing money. Our new branding campaign captioned ‘Things Beyond Money’ highlights the fact that there are many things beyond money in life but they all cost money, for instance, daughter’s marriage, child’s education, health care, foreign holidays, a good house etc. Money is also testimony to your hard earned success and we at India Infoline have the proven expertise in advising and managing money so that it grows quickly and without taking any undue risks.
About India Infoline Ltd (Bloomberg: IIFL)
The India Infoline group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and it’s subsidiaries, is one of the leading players in the Indian financial services space. India Infoline offers advice and execution platform for the entire gamut 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. India Infoline has recently been awarded the ‘Best Broker, India’ by FinanceAsia and the ‘Most improved brokerage, India’ in the AsiaMoney polls. A forerunner in the field of equity research, India Infoline’s research is acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’. India Infoline’s 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 1,361 business locations spread over 428 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 about a million customers, over a variety of mediums viz. online, over the phone and at our branches. India Infoline refers to India Infoline Ltd and its group companies.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
