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1/27

ResultsforQuarterendin June30th 2009

July17,2009


2/27

Presentation structure

Performancehighlights

Businessreview

Businessstrategy

Industry

2

Unlessotherwisementioned,factsandfiguresinthispresentationrefertothosefortheIndiaInfoline group(consolidated)


3/27

Performancehighlights Q1FY10

Overall financial erformance

QuarterlyIncomeatRs2.57bnup37%qoq

EBIDTAmarginforthequarterwas37.4%,ascomparedto30.3%inthepreviousquarter

PBTandPAT wereatRs816.9mn,andRs516.8mn,up180%qoq and104%qoq respectively

Equities

Overallmarket

share

on

the

NSE

stood

at

3.63%

compared

to

3.53%

in

the

previous

quarter

AveragedailyvolumesstoodatRs32.25bn ascomparedtoRs19.16bn inQ4FY09,anincreaseof68%qoq

StrategicagreementwithInteractiveBrokersLLCwillprovideIndiaInfolineclientsaccessto80exchanges

LifeInsurance

Commencedbusiness

for

several

insurance

companies

including

Max

New

York

Life

Insurance,

MetLife,

RelianceLifeInsurance,BirlaSunlife andKotak LifeInsurance

AnnualizedPremiumIncomemobilizedstoodatRs.38.40crores

Whiletheoutlookofthebusinesswillremainlinkedwiththeindustryfortune,thecompanyspositionasa

brokerwillimproveovernextfewquarters

RecommencedMortgagebusinessinJune2009giveneasingofcreditmarkets

BooksizeRs9.22bn attheendofJune2009

WealthManagement

3

AssetsundermanagementcrossedRs20bn

Increasedthebaseforfamiliesunderadvisory

Appliedto

the

FSA

in

United

Kingdom

for

licence


4/27

Performanceinpictures Q1FY10Performancereview

Revenues(RsMn) EBITDA(RsMn)

26,904.527,667.8

23,039.6

25,633.9

25,000

30,000

9,982.6

8,790.7

9,581.210,000

12,000

18,696.7

15,000

20,000

6,088.8

4,364.6

6,000

8,000

-

5,000

,

Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10

-

2,000

,


EBITDAmargin(%)PBT(RsMn)

7,770.3

6,733.8

8,168.6

7,000

8,000

9,000 37%

32%

37%40%

4,535.5

2,909.33,000

4,000

5,000

6,00026%

23%

20%

4

-

1,000

2,000


0%

10%



5/27

Financialhighlights Q1FY10

Incomefromoperations 2,562.6 2,684.0 1,867.1 4.5% 37.3%

Equitiesbrokerage&related 1,768.0 1,584.9 1,152.6 11.5% 53.4%

FinancingandInvestment 488.8 649.8 345.2 24.8% 41.6%

ar et ngan on neme a . . . . .

Life

Insurance

distribution

83.7

155.6

89.3

46.2%

6.2%Commoditiesbrokerage&related 66.0 49.9 55.0 32.2% 19.9%

WealthandMutualfundadvisory 50.9 63.5 55.4 19.8% 8.1%

MerchantBanking 9.0 4.4 0.3 103.3% 2982.2%

Otherincome 0.8 6.5 2.6 87.1% 68.2%

TotalIncome 2,563.4 2,690.5 1,869.7 4.7% 37.1%

A.Direct

cost

567.1

561.9

384.3

0.9% 47.6%

B.Em lo eecost 642.8 626.2 632.6 2.7% 1.6%

C.Administrationexpenses 395.4 504.1 416.3 21.6% 5.0%

EBITDA 958.1 998.3 436.5 4.0% 119.5%

Interest 7.2 136.2 22.8 94.7% 68.6%

. . . . .

Profit/(Loss)beforetax 816.9 777.0 290.9 5.1% 180.8%

Provisionfortaxation 269.7 243.1 31.2 11.0% 765.8%

ro t oss a tertaxa terextraor nary . . . . .

MinorityInterest 30.4 38.6 6.9 339.3%

Profit/(Loss)AfterTax 516.8 495.4 252.9 4.3% 104.4%


6/27

Presentationstructure


Businessreview

Businessstrategy

Industry

6

Unlessotherwisementioned,factsandfiguresinthispresentationrefertothosefortheIndiaInfolinegroup(consolidated)


7/27

RetailequitiesPerformancereview

ar e

s areon

a

.

n

as

comparedto3.53%inthepreviousquarter

Averagedailyturnoverup68%yoy toRs32.25bnin

Q1FY10ascomparedtoRs19.16bn intheprevious

Retailcustomerbaseforequitybroking

596,056

676,107700,000

800,000Numberofclients

quar er

Retailcustomer

base

has

increased

by

36%

yoy to

0.67mn inQ1FY10

TieupwithInteractivebrokerswillprovideclients

438,864

300,000

400,000

500,000

600,000

accessto80exchangesin18countries

5,500

75,000

150,000

0

100,000

200,000

FY05 FY06 FY07 FY08 FY09 Q1FY10

IILmarketshareEquitiesbroking(Cash&FAO)

EquitiesBrokerageRsMn (LHS) Av.DailyVol (Rs.Mn)

3 63%3.8%

4.5%NSE Market Share

2150

191435,000

40,0002,500

3.03%

.

2.6%

3.2%

692

1125

15851483

1114 1153

1768

15,000

20,000

25,000

30,000

1,000

1,500

,

7

1.3%

1.9%

Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-090

5,000

10,000

0

500

Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09


8/27

InstitutionalequitiesPerformancereview

ra ng

ormos

oca

ns u ons

an

over

g o a

nves ors

n

n a

IncreasedpresenceintheUSmarketsbyhiringofaseniorresourcestationedinNewYork

150+stocksundercoverage,targetingtodoublecoverageuniverse

IndepthandthematicprintedreportsonGold,ProtectionismandIndiaandCHina chartbook(a

compendiumof100chartscomparingthe2economies)werewellreceivedbyclients

Establishedcredentials

in

executing

large

block

deals

DealflowfortheInvestmentbankingdivisionexpectedtoimprovewithimprovingmarketsentiments

Researchoffering

Sectoral special on Gold witha foreword by Jim Rogers

Sizing Up India & China: 100charts to compare and

contrast the two economies

Thematic research thatgoes far beyond balancesheets and P&L accounts

8


9/27

InsurancePerformancereview

os

ea ngpr va e

sec or

p ayers

n

e

nsurance

n us ry

averecor e

ayoy ec ne

InsurancemobilizationinQ1FY10stoodatRs384mn

Productmixhasbeensignificantlychangedtoincreasethecontributionofendowmentproducts

Outlookofthebusinesswillremainlinkedwiththeindustryfortunes,butthecompanyspositionasa

brokerwillimproveovernextfewquarters

Changingproductmix Mobilization(RsMn)

Q1FY10Q1FY09

1,9452,000

2,500 Mobilization(Rsmn)

50%

26%27%

1%

29%

891

1,102

806 844

613

1,000

1,500

92%

23%

ENDOWMENT HEALTH

PENSION ULIP

44%

432 384

500


10/27

CreditandfinancePerformancereview

o a

por o os ze

was

s . n

as

on

une

,

Economyhasshownsignsofrecoveryandthedemandforcreditalsoispickingup

Have resumedsecuredlendingagainstthesecurityofresidentialandcommercialproperty

Numberofdisbursals Portfoliobreakup

1,229

1,416

1,5741,600 Securedloans

Unsecuredloans

Q1FY09

10%

Q1FY10

433528

368

587

471

800

, 18%

12%

17%

10

106

291

15 28

0

400

Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10

54% 56%

PersonalLoan MortagageLoan

MarginFunding LAS/Debenture


11/27

WealthmanagementPerformancereview

sse sun er

managemen

crosse

s

n w

ncrease

rac on

or

am y

o ce

o er ng

Productsincludestructuresnotes,NABARDandbonds,andlongdatedoptions

Growingdomesticandinternationalpresence

Createdmarketsforprimary/secondaryNABARDbonds,Longdatedoptionsand FCCBs

I I F L P r i v a t e W e a l t h s P r o d u c t P r o p o s i t i o n

AdvisoryAccounts

Inhouseequityand

debtadvisory

ExecutionaryPlatform

Inhouseequity

broking

CustodyandTrust

FamilyOffice

proposition

ManagedAccounts

Independent Asset

Managers

ure v sory

agreements

Derivativesand

Optionsstrategy

cre

Commoditytrading

Currencytrading

rus serv cesan

succession planning

ar ners or e

200,000opportunity

Commodityand

currencyPMS/trusts

RealEstate

advisory

PrivatePlacements

International

latform

MutualFunds

REandPEFunds

11

StructuredNotes

TermCover

insurance


12/27

RecentawardsandaccoladesPerformancereview

MOSTIMPROVED

INDIA

AwardedMost

BESTBROKER

INDIA

Awarded BestBroker

FASTESTGROWING

LARGEBROKER

AwardedFastest

Improved

brokerageinIndia

byAsiaMoney asa

partofitssurveyof

brokera esin

India byFinanceAsia

asapartofitssurvey

offinancialservices

firmsacrossAsiafor

growingEquity

BrokingHouse

LargefirmsinIndia

fortheyear2008by

Dun&Bradstreet

countriesacross

Asiafor2008

12


13/27



Businessreview

Businessstrategy

Industry

13



14/27

Corporateoverview

Thejourneysofar

IIFLWealth

launched

Insurancebroking

HousingFinance

registration

Inprincipleapproval

forMutualFund

VentureCapitallicense

256

241250

300

Revenues EBITDA PBT PAT BestBrokeraward FIIregistration

200 CLSAteamjoins

FormedIIFL(Asia)

Pte LtdSDM

n)

Launchedonline

106101

7371

100

Launched

Commodities

broking

LaunchedPMS

s ngon

NSE,BSE

Launched

proprietary

tradingplatform

DGCX

membership

(

Becamecorporate

agentforICICI

Prudential

Started

distributionof Launched

proprietary

2 3 4 39

19

38

22

35

26

1829

2 512

19

48

36

0

50

www. n a n

foline.com

nanc a pro uc s

platform

for

onlinetrading

14

-50

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


15/27

Visionandstrategy

BusinessStrategy CustomerStrategyVision

Focus

on

core

competenceinfinancial

services

Drive

customer

stickiness

throughquality

advice,bestvalueanda

TOBECOME

THE

MOSTRESPECTEDCOMPANYIN

THEFINANCIALSERVICESSPACE

Multipleproductsand

diverserevenuestreams

ensurede

risked

delightfulexperience

Cuttingedgeproprietary

technologyfor

Shareholders:High

Assetheavyorlong

gestationbusinesses

throu h se arate JVs

,

andcustomerservice

Wide,multimodal

network servin as one

ROCE,ROE

Customers:Valueand

experience

groupcompanies

stopshop

to

customers Employees:

Rewards

and

growth

15


16/27

Corporatestructure

IndiaInfolineLtd.(Bloomberg:IIFLIN)

IndiaInfoline

Commodities

Ltd.

IndiaInfoline

Investment

ServicesLtd.

IndiaInfoline

Media&

Research

ServicesLtd.

IIFLRealtyLtd.IIFL(Asia)Pte.

Ltd.

IIFLWealth

Management

Ltd.

IIFLVentures

Ltd.IIFLCapitalLtd.

IndiaInfoline

Marketing

andServicesLtd.

Moneyline

CreditLtd.

IndiaInfoline

Housing

FinanceLtd.

IndiaInfoline

Distribution

Co.Ltd.

IndiaInfoline

Insurance

BrokersLtd.

IndiaInfoline

Insurance

ServicesLtd.

16

*Theabovechartdoesnotcoverallgroupcompanies


17/27

Corporateoverview

Managementteamwithproventrackrecord

rac

an

u

a

eamw

mpecca e

aca em c

an

pro ess ona

cre en a s

Opendoor,transparentandperformanceorientedculture

Increasinglevelofemployeeownership

KeyManagementPersonnel

Executive

Directors Non

Executive

Directors Independent

DirectorsNirmalJain,RVenkataraman SatPalKhattar A.K.Purwar,N.Vikamsey,K.Sinha

Institutional Equities

InvestmentBanking

H.Nemkumar,VasudevJagannath,

AniruddhaDange

AjitMenon,DonaldDSouza

Finance

Compliance

KapilKrishan

RMohan

RetailBroking

Wealth Management

Nandip Vaidya

KaranBhagat,YatinShah

Audit

HumanResources

UpendraJaiswal

CaptRSharma

InternationalOperations Bharat

Parajia Technology Titus

G

OffshoreAssetManagementDeepesh Pandey,Manish

Srivastava

InsuranceDistribution Sateesh Kumar

17

CorporateFunctionsVerticals


18/27



Businessreview

Businessstrategy

Industry

18



19/27

WelldiversifiedfinancialservicescompanyBusinessandStrategy

Ourserviceofferings

Wealthmanagement

Advisory

Financing

Equities Mutualfunds

Insurance

Equities

Insurance

Retail AffluentCUSTOMERSEGMENTS

Credit&finance

InstitutionalCorporate

Institutionalequities Investmentbanking

Wealthmanagement

AssetManagement

Derivatives Corporatedebt

Investmentbanking

19


20/27

BusinessstrategyBusinessandStrategy

Focusedonfinancialservices Deriskedbusinessmodel

Equities

Consumerfinance

Equities

Retail

Nonequities

Institutional

LifeInsurance

MutualFunds

WealthManagement

Retailassets

Massaffluent

India

Retailliabilities

HNIs

International

STRATEGYOperational excellence Attractexceptional peoplewith

ownermindset Innovativeprocessespoweredby

cuttingedgetechnology Successfulintegrationof

InstitutionalequitiesandWealth

RiskManagement

has

withstood

trialbyfire

Leanandscalableplatformwith

anagemen eams

BuildingupoftheAssetManagementteam

Entrepreneurialandprofessional

LiberalOwnershipsharing

20


21/27

HowwedifferentiateourselvesBusinessandStrategy

Promotedbyfirstgenerationprofessionalentrepreneurs

Managementteamunmatchedintermsofprofessionalcredentials,experienceaswellasacademicbackground

Managerialdepth

NetworthapproximatelyRs16 bn withnegligibledebt

WellfundedtonotjustweatherbuttakeadvantageofdownturnWellcapitalized

Presentat1,616businesslocations,withover500ownbranches

Effectivelycover

445

cities

across

India

Distributionreach

Thetopmanagementisdrivenbyprideandrewardofownership

TothinkandworklikeanownerispartoforganizationsDNAOwnermindset

Onlyplayerwithproprietarytradingplatform

Effectivelyharnessedtechnologytofacilitateprocessesandprovidesuperiorcustomerexperience

Technologyedge

21


22/27

FocusgoingforwardBusinessandStrategy

Focuson

shar enin

Focuson

erfectin

Focuson

attractin the

Focuson

ersonalized

x u

advisory

excellenceSkilldevelopment

u

experience

research

capabilities

Trainingand

processes

Leveraging

besttalents

Givingthem

skilledservice

Useof

development

ofhuman

resources

technology superior

environment

andtraining

technologyto

givethebest

experience

22


23/27



Businessreview

Businessstrategy

Industry

23



24/27

LongtermmacrogrowthdriversIndustryoverview

Growingeconomy IndiasGDPexpectedtogrowat8%,Financialservices

likelyto

grow

at

2x

GDP

2 Favorabledemographics 60%ofthepopulationisbelow35yearsofageabouttoenterprimeageforsavingsandinvesting

3 Underpenetratedmarket Verylowpenetrationofequityassetsaswellasmortgages

4 Capitalinflow Indianeconomywillcontinuetoattractforeigncapitalowingtoitscapacitytoabsorbcapitalproductively

5 Consolidation in Indian financial services sector driven b increasin needfor

Capital,

Compliance

and

Research

expertise

24


25/27

Industry

400,000

500,000

600,000

800,000

1,000,000

1,200,000

100,000

200,000

300,000

200,000

400,000

600,000

Source:NSE,Source:NSE,BSE

Apr05 Apr06 Apr07 Apr08 Apr09

Apr05 Apr06 Apr07 Apr08 Apr09

14

15

16

17

60

70

80 Top5 Next5 Next15 Next50 Next25

8

9

10

1112

20

30

40

50

5

6

Apr04 Feb

05 Dec

05 Oct

06 Aug

07 Jun

08 Apr

09

0

10

Source:NSE Source:NSDL,CDSL


26/27

Industry

5,3274,940

6,717

6,000

7,000

8,000

1,000

1,200

795

1,396 1,496

2,319

3,264

1,000

2,000

3,000

4,000

,

200

400

600

800

APE rowth o %APE market share %

Source:AMFISource:AMFI

Mar03 Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Jun09

RelianceMutual

Fund

HDFCMutual

Fund

ICICIPrudential

MutualFund

UTIMutual

Fund

BirlaSunLife

MutualFund

7280

5450

80

110PrivatePlayers LIC

85

7375

90

105 PrivatePlayers LIC

39

35

7

(4)

(16)

4

29

19

(6)(12)

(17) (18)

(5)

14 16

(10)

20

2736

3752

59 55

64 63

48

4145

30

45

60

Source:IRDA

(27)25

(39)

(61)(70)

(40)

May08 Jul

08 Sep

08 Nov

08 Jan

09 Mar

09 May

09

15

0

FY04 FY05 FY06 FY07 FY08 FY09 2MFY10

Source:IRDASource:IRDA


27/27

Thankyou

Published in July 2009. India Infoline Ltd 200910.

India Infoline Ltd. All rights reserved. Regd. Off: 75, Nirlon Complex, Off W E Highway, Goregaon (E) Mumbai400 063.

Tel.: +(91 22)4007 7000 Fax: 2685 0451.

This report is for information purposes only and does not construe to be any investment, legal or taxation advice. It is not intended as an offer or solicitation forthe purchase and sale of any financial instrument. Any action taken by you on the basis of the information contained herein is your responsibility alone and India

Infoline Ltd (hereinafter referred as IIL) and its subsidiaries or its employees or directors, associates will not be liable in any manner for the consequences of such

action taken by you. We have exercised due diligence in checking the correctness and authenticity of the information contained herein, but do not represent that

it is accurate or complete. IIL or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any

27

. .

its subsidiaries and/or directors, employees or associates may have interests or positions, financial or otherwise in the securities mentioned in this report.

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India Info Intro