IIFL has posted Consolidated results for the third quarter ended December 31, 2011.
Results (consolidated) for the quarter ended December 31, 2011
Income for the quarter at Rs4,804.4 mn, up 16.9% qoq (up 4.5% yoy)
Profit after Tax at Rs358.1 mn, up 62.2% qoq (down 46.6% yoy)
Financing and distribution business have driven income growth
Nirmal Jain, Chairman, IIFL, commenting on the financial results of Q3FY12 said, “On a QoQ basis, we have been able to improve our performance significantly despite continued sluggishness in equities trading volumes.Our growth has been driven by distribution of financial products like insurance and growth in retail loan book.The operating environment for all our businesses is likely to improve in 2012”.
Equities and Commodities Broking
Equities, broking and related revenue was Rs1,262.4 mn in Q3FY12, down 9.1% qoq, down 32.5% yoy.In equities brokerage, our average daily turnover during the year was Rs51.8 bn, down 0.6% qoq and 17% yoy.Market share on the NSE was at 3.7% in Q3FY12 as against 3.6% in Q2FY12. The market share saw a marginal
increase due to increase in our cash market share. Average daily volumes in our commodities business stood at Rs15.6 bn during the quarter, down 12.3% qoq, up 100% yoy.Our in-depth, thematic research has always been very well-received. Our recent research reports include Insights: Key charts on eight important facets of the Indian economy; India – Internet: Emergence of internetbased industries as India’s internet userbase reaches a tipping point; India – Highways: An analysis of operational BOT road projects.
Distribution and Marketing
During the year under review, our income from this segment was Rs655.0 mn, up 55.5% qoq, up 39.1% yoy. Our product portfolio is dominated by long term endowment products. It is also diversified across several leading insurance companies which include SBI Life, Reliance Life Insurance, HDFC Standard Life, Tata AIG, ICICI
Prudential etc.
Insurance industry volumes down 19% yoy for the first 8 months of current fiscal, however IIFL distribution and marketing revenue increased by 7% in the first nine months of the fiscal year.
Financing and Investment
The NBFC loan portfolio increased to Rs62.2 bn as on December 31, 2011. Our loan book largely comprises secured lending with mortgages contributing to 50%, capital market products contributing to 16%, gold loans contributing to 32% and medical equipment financing contributing to 1.5%. Our unsecured loan book has fallen to less than 0.5% of the total book. NPAs on our overall portfolio are less than 0.5%.
Mutual fund
IIFL AMC launched its first New Fund Offer (NFO) IIFL Nifty ETF on September 28, 2011 and received an overwhelming response from investors. IIFL Nifty ETF was among the top 2 equity oriented ETF in terms of total trading volumes for the month of December because of its high retail participation.IIFL Mutual Fund also launched its first debt scheme, IIFL Fixed Maturity Plan Series 1. The scheme is a close ended income scheme for a tenure of 550 days. The performance of the scheme would be benchmarked against CRISIL Short Term Bond Index. The scheme opened on January 13, 2012 and closed for subscription on January 19, 2012. The fund received a good response and collected around Rs320 million.
IIFL Real Estate Fund (Domestic) Series 1 raises Rs5 bn
India Infoline Venture Capital Fund (IIFL VCF), the venture capital arm of India Infoline Group (IIFL), successfully completed the launch of its Real Estate Fund – ‘IIFL Real Estate Fund (Domestic) Series 1’ on January 25, 2012.The fund was fully subscribed to its issue size of Rs5 bn. The fund is a debt and equity linked investment instrument focusing on affordable residential segment across the top 7 cities in the country. IIFL Alternate Asset Advisors Limited is the Investment Manager of the fund