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

• Income for the quarter at Rs. 5,826.0 mn, down 8% qoq, up 62% yoy
  
  
• Profit after Tax at Rs.522.2 mn, up 11% qoq, up 91% yoy
  
  
• Profit before Tax at Rs.820.8 mn, up 13% qoq, up 93% yoy
  
  

Summary consolidated financials

Nirmal Jain, Chairman, IIFL, commenting on the financial results of Q1FY13 said, “Our core businesses of equities and financial products distribution continue to face headwinds. But the overall performance has shown satisfactory growth, helped by steady growth in consumer finance business and tight cost controls." India Infoline Limited Press Release Financial Results: Q1FY13

Equities and Commodities Broking

Equities, broking and related revenue was Rs.1,250 mn in Q1FY13, down 15% qoq, down 7% yoy. Our average daily turnover of equity during the period was Rs.45 bn, down 17% qoq and down 13% yoy. Market volumes particularly of cash segment have fallen, impacting our performance as well. Average daily volumes in our commodities business stood at Rs.15 bn during the quarter, marginally up on a qoq basis and up 35% yoy. Our in-depth, thematic research continues to get positive response from domestic as well as global fund managers.

Financing and Investment

The NBFC loan portfolio increased to Rs`73.7 bn as on June 30, 2012. Our loan book is almost entirely secured. In Q1 FY13, portfolio largely comprised secured lending like mortgages, including NCDs classified as investments in the balance sheet, capital market products, gold loans and medical equipment financing. Gold loan forms 40% of the total assets of the NBFC company. Our unsecured loan book has fallen to less than 0.5% of the total loan book. Gross NPA on our overall portfolio is 0.54% whereas Net NPA is 0.38%.

Distribution and Marketing

During the period under review, our income from this segment was Rs.479 mn, down 49% qoq, up 15% yoy. In this segment, distribution of life insurance and mutual fund are major contributors to income. Generally for this business, first quarter of financial year is historically slack.

IIFL Mutual Fund

IIFL Mutual Fund announced its new offering of an open-ended Index Fund—IIFL Dividend Opportunities Index Fund, with an objective to provide returns to investors by investing in stocks which are constituents of its benchmark index - CNX Dividend Opportunities Index (a thematic index of 50 high dividend yield companies listed on NSE, spread across 25 diversified sectors and comprising large and mid-cap stocks). The Scheme is a passively managed which will track and replicate the constituents of CNX Dividend Opportunities Index, subject to tracking error. India Infoline Limited Press Release Financial Results: Q1FY13

Other updates

IIFL received Pension Regulator nod- India Infoline Finance Limited has received registration from Pension Fund Regulatory and Development Authority (“PFRDA”) to act as “Aggregator” under National Pension System (NPS). This will enable IIFL Finance to distribute pension products under PFRDANPS – LITE primarily targeting marginal investors and promote small savings among the public investors through its various branches and offices.

Further, it has also received registration from PFRDA to act as “Points of Presence (PoP)” under National Pension System (NPS) in June 2012. This will enable IIFL Finance to directly distribute pension products under NPS through its various branches and offices for all citizens, except Government Employees covered by NPS, and enable the common public access to their long term pension needs.

Dhruv Jain takes over as CFO - L P Aggarwal, the erstwhile Chief Financial Officer of the company has resigned from the services of the company. Mr Dhruv Jain takes charge as the CFO. Mr Dhruv Jain is a Chartered Accountant as well as a qualified Company Secretary and Cost Accountant. He has extensive experience in areas ranging  from Treasury, Project Appraisal, and Investment & Banking Management. His last assignment was as Senior Vice President and Treasurer of CITI-Financials.

Dr S Narayan, ex-Economic Advisor to Prime Minister, joins as Independent Director- The IIFL Board appointed Dr S Narayan, as an Independent Director of India Infoline Ltd. He served as Economic Advisor to the Prime Minister of India. He has rich experience in implementation of economic policies and monitoring of the special economic agenda of the Cabinet on behalf of the Prime Minister`s Office. He also has experience in formulation of macro-economic policy for the Government tariff and taxation polices, as well as initiatives for modernizing the capital markets. Dr Narayan holds M.Sc., MBM, M Phil, Ph.D. degree. For nearly four decades (1965 to 2004), he was in public service in the State and Central Government in development administration.

IIFL’s analyst rated as Best Market Analyst- Amit Harchekar was rated as the ‘Best Market Analyst’ by Zee Business at the Zee Business Market Analyst Awards 2012. He received the award from Honourable President, Shri Pranab Mukherjee, our then Finance Minister.