India Infoline Limited

Results for Quarter ended December 31, 2010 
February 5, 2011
 • Performance highlights

• Business review

• Corporate overview
Corporate overview

• Industry update

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)
Results for Quarter ended December 31, 2010 2
Performance highlights – Quarter ended Dec 31, 2010
Overall consolidated financial performance
Overall consolidated financial performance
¸ For the quarter, Income stood at `4,596 mn, up 59% yoy and 35% qoq
¸ EBIDTA margin was 47.8% as compared to 39.9% in the previous quarter
¸ PAT stood at `671 mn up 13% yoy and 24% qoq

Equities Broking and related 
¸ Average daily turnover was around `62 bn, up 66 % yoy, up 34 % qoq
¸ IIFL market share in NSE was 4.2% during the quarter
¸ The Wealth Management business continues to grow. The assets under advisory are over `150 bn
¸ During the quarter, our Investment Banking team handled Qualified Institutional Placements (QIPs) of 
three mid‐sized companies

Financing and Investing
¸ The aggregate loan book size increased to around `30 bn from `25.7 bn in the last quarter
¸ NPAs on the book continue to remain less than 1%

Insurance, Marketing and Distribution 
¸ Insurance premium mobilization in the quarter was around `666 mn, up 7 % yoy
¸ During the quarter, share of ULIP has increased from 8% to 26%

Results for Quarter ended December 31, 2010 3
Financial highlights: Quarter ended Dec 31, 2010

` Mn  Q3FY11  Q2FY11  Q‐Q  Q3FY10  Y‐Y 

Equities, Broking and related income 1,870.1  1,634.0 14.5% 1,929.1  (3.1%)
Financing and Investing income 2,253.3  1,252.7 79.9% 598.4  276.6%
Marketing and Distribution income
Marketing and Distribution income  471 1
471.1  507 0
507.0 (7 1%)
(7.1%) 366 3
366.3  28 6%
28.6%
Other income 1.8  5.4 (66.5%) 3.5  (47.9%)
Total Income  4,596.3  3,399.1 35.2% 2,897.3  58.6%
A. Direct cost  695.7  444.6 56.5% 423.8  64.2%
B. Employee cost  1,041.8  986.8 5.6% 828.2  25.8%
C. Administration expenses  659.8  610.1 8.1% 516.4  27.8%
EBITDA  2,199.0 1,357.6 62.0% 1,128.9 94.8%
Interest  1,042.3  385.3 170.5% 10.4  9969.4%
Depreciation and amortization   150.6  155.3 (3.0%) 150.0  0.4%
Profit / (Loss) before tax  1,006.1  817.0 23.1% 968.5  3.9%
Provision for taxation
Provision for taxation  322.7 267.5 20.6% 341.7 (5.6%)
Profit/(Loss) after tax before minority 683.4  549.5 24.4% 626.8  9.0%
Minority Interest   12.8  8.1 58.6% 31.7  (59.6%)
Profit/(Loss) after tax 670.6  541.4 23.9% 595.1  12.7%

Results for Quarter ended December 31, 2010 4
Financial highlights: April to December, 2010

` Mn  9MFY11  9MFY10  Y‐Y 

Equities, Broking and related income 5,047.4  5,370.8  (6.0%)
Financing and Investing income 4,603.8  1,949.4  136.2%
Marketing and Distribution income
Marketing and Distribution income  1 395 1
1,395.1  814 0
814.0  71 4%
71.4%
Other income 9.0  6.6  35.9%
Total Income  11,055.3  8,140.8  35.8%
A. Direct cost  1,617.7  1,170.8  38.2%
B. Employee cost  2,948.3  2,207.1  33.6%
C. Administration expenses  1,842.5  1,418.8  29.9%
EBITDA  4646.8 3344.1 39.0%
Interest  1,710.5  173.1  888.2%
Depreciation and amortization   460.0  415.6  10.7%
Profit / (Loss) before tax  2,476.3  2,755.4  (10.1%)
Provision for taxation
Provision for taxation  802.9 938.3 (14.4%)
Profit/(Loss) after tax before minority 1,673.4  1,817.1  (7.9%)
Minority interest   29.9  125.0  (76.0%)
Profit/(Loss) after tax 1,643.5  1,692.1  (2.9%)

Results for Quarter ended December 31, 2010 5
 • Performance highlights

• Business review

• Corporate overview
Corporate overview

• Industry update

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)
Results for Quarter ended December 31, 2010 6
 Equities
¸ M k t h
Market share on NSE increased to 4.2% in Q3FY11 
NSE i d t 4 2% i Q3FY11
¸ Average daily turnover up 66% yoy in Q3FY11 to around `62 bn 
¸ Present in over 2,700 business locations through branches and sub‐brokers
¸ We launched of our latest version of the Trader Terminal which has a lightning fast execution speed, 
world class user interface and a single‐click access to our world‐class research

Average Daily Turnover (` mn) Market share on NSE (in %)

Results for Quarter ended December 31, 2010 7
 Commodities
¸ C
Commodities market share increased to 2.1% in Q3FY11 
diti k t h i d t 2 1% i Q3FY11
¸ Average daily turnover up 79% yoy in Q3FY11 to around `8 bn
¸ The commodities market turnover has increased by 12% over the last quarter

Average Daily Turnover (` mn) Market share (in %)

2.2%
9,000 
2.1%
7,801  2.0%
8,000 
2.0%
7,000  6,547 
1.8% 1.8%
6,000 
5,206  1.7%
1.6%
5,000  4,660 
4,367  1.6%
4,000 

3,000  1.4%

2,000 
1.2%
1,000 

‐ 1.0%
Dec 09 Mar 10 June 10 Sep 10 Dec 10 Dec 09 Mar 10 June 10 Sep 10 Dec 10

Results for Quarter ended December 31, 2010 8
 Research
¸ Over 150 stocks under coverage
g
¸ Our in‐depth, thematic research has been well received. Our recent research reports include:
¸ INCH Chartbook: Sizing Up India and China
¸ India Gas: High on Gas 
India Gas: High on Gas – A detailed analysis on how natural gas will transform India
A detailed analysis on how natural gas will transform India’ss energy 
energy
consumption
¸ Singapore Commodities – A detailed report on three leading Singapore‐based commodity 
traders
¸ IIFL’s 2nd Global Investors’ Conference, ‘Enterprising India II’ is scheduled to be held in Mumbai 
this month. We have received an overwhelming response from global investors, corporates and 
eminent leaders
Research offerings – a few reports
Research offerings  a few reports
INCH Chartbook: High on Gas: How natural Three leading Discover Sri Lanka: A Black Diamond: A Rigorous company
Sizing Up India and gas will transform India’s Singapore-based primer on this promising detailed analysis of research that goes far
China energy consumption commodity traders market India’s coal industry beyond the basics

Results for Quarter ended December 31, 2010 9
 Insurance

¸ bl d`
Insurance premium mobilization in Q3FY11 was around `666 mn, up 7% yoy
¸ During the quarter,  share of ULIP has increased from 8% to 26% due to launch of new low 
charge products by manufacturers 
¸ The changes made by the regulator will benefit the consumers and strengthen the fundamentals 
Th h d b th l t ill b fit th d t th th f d t l
of the industry in the long term

Changing product mix Marketing and Distribution income (` mn)

600
Q2FY11 Q3FY11 507 0
507.0
500 479.0 471.1
1%
18% 417.0
26% 400 366.4

8% 300
1%
200
73% 73%
100

Endowment
Guaranteed return ULIPs ULIP Pension Health 0
Dec 09 Mar 10 Jun 10 Sep 10 Dec 10

Results for Quarter ended December 31, 2010 10
 Financing and Investing
¸ Th l D b 31 2010 i dt d `30 b
The loans portfolio as on December 31, 2010 increased to around `30 bn
tf li
¸ 99% of the loan portfolio is secured against collateral of mortgages, shares, debentures and 
other securities
¸ Mortgages contribute to 52% of the lending book, followed by margin funding, loan against 
b f h l d b k f ll db f d l
securities and personal loans at 27%, 20% and 1% respectively

Loan Portfolio (` bn)

Loan Portfolio (` Portfolio break‐up
Portfolio break‐up

35
29.7 Q2FY11 Q3FY11
30
25 5
25.5 1%
2%
25 20%
21%
19.5
20
16.3 43%
15 52%
12.0
27%
10 34%

0 Personal Loan
Personal Loan Mortagage
Mortagage Loan
Loan
Mortgage Loan
Mortgage Loan
Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Margin Funding LAS/Debenture

Results for Quarter ended December 31, 2010 11
 Financing and Investing
¸ NPA
NPAs on the books continue to remain less than 1%
th b k ti t i l th 1%
¸ Net interest margin and loan spreads, both are at healthy levels
¸ During the quarter, we commenced Healthcare Financing. The products being offered include 
project financing for brown field expansion medical equipment & ancillary equipment finance re‐
project financing for brown field expansion, medical equipment & ancillary equipment finance, re
finance on existing equipment

Net Interest Margin and Loan Spread (%) Gross and Net NPA (%)
Gross NPA Net NPA

0.9%
NIM Spread
0.8% 0.8%
16%
13 8%
13.8% 0.7%
14% 12.8% 0.7% 0.7%
12% 0.6% 0.6%
10.3%
0.5% 0.5%
10% 0.5%
0.5% 0.4%
8% 7.2% 0.4%
9 0%
9.0%
6% 7.6% 0.3%
7.0%
4% 4.9% 0.2%
2% 0.1%
0%
0.0%
FY10 Q1FY11 Q2FY11 Q3FY11
FY10 Q1FY11 Q2FY11 Q3FY11

Results for Quarter ended December 31, 2010 12
Wealth management
¸ Assets under advisory over `150 bn
Assets under advisory over `150 bn
¸ Introduced Family Office – A multi‐manager investment platform offering a complete wealth 
structuring solution including inter‐generational transfer, to clients
¸ Have continuously invested in upgradation of systems, technology and processes and built a 
Have continuously invested in upgradation of systems, technology and processes and built a
robust platform supporting multiple asset classes

Product Platform

Equity Debt Real Estate Cash

Direct Equity Bonds & Other Debt Cash & Cash 

RE Advisory
Equivalents
RE managed Accounts 
RE managed Accounts
Equity Mutual Funds Debt Mutual Funds (Discretionary PMS)
Equity Structure  Debt Structured 
Products Products
Equity Managed A/c’s  Debt Managed A/c’s 
(DPMS) (DPMS)
Managed Accounts 
Loan Assignments
(Discretionary PMS)
Private Equity 
Transactions

Separate Demat

Results for Quarter ended December 31, 2010 13
Investment banking
¸ Our Investment Banking team handled Qualified Institutional Placements (QIPs) of three mid
Our Investment Banking team handled Qualified Institutional Placements (QIPs) of three mid‐
sized companies
¸ The company continues to invest in strengthening its investment banking team and infrastructure
¸ The deal flow in primary and secondary market has declined significantly during the quarter
The deal flow in primary and secondary market has declined significantly during the quarter
Deal Snapshot: 9MFY11

QIP QIP GDR

Rs 1 350mn
Rs.1,350mn Rs 2 000mn
Rs.2,000mn Rs3,040mn
Rs3 040mn

Tilaknagar Industries Ltd. Vardhman Textiles Ltd. Cox & Kings India Ltd.

2010 2010 2010
BRLM Sole BRLM BRLM

IPO Rights IPO

Rs 774mn Rs11 563mn
Rs11,563mn Rs 2,000mn

Parabolic Drugs Limited
Talwalkars Better Value  Videocon
Fitness Limited Industries Limited 2010
2010 2010
Member of the 
Sole BRLM Lead Manager Syndicate

Results for Quarter ended December 31, 2010 14
 International Operations
¸ IIFL
IIFL commenced broking operations in Colombo and Singapore 
d b ki ti i C l b d Si
¸ The company donated its entire first week commissions from trading operations in SGX to 
Community Chest, Singapore
¸ IIFL received FSA License in London, UK for advising on investments and arranging deals in 
d d f d d d l
investments for eligible counterparty and Professional Investors

IIFL Securities research products Our international footprint

INCH Chartbook: Three leading
Sizing Up India and Singapore-based
Singapore based
China commodity traders

London

New York

Dubai Colombo
Singapore

Results for Quarter ended December 31, 2010 15
 • Performance highlights

• Business review

• Corporate overview
Corporate overview

• Industry update

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)
Results for Quarter ended December 31, 2010 16
Evolution
1995 ¸ Commenced operations as an Equity Research firm Income (`
( mn))
¸ Launched research products  of leading Indian  11,239 11,055
1997 companies, key sectors and the economy 9,280 8,775
¸ Client included leading FIIs, banks and companies

1999 ¸ Launched www.indiainfoline.com  3 974

3,974
2,021
¸ Launched online trading through www.5paisa.com 742
2000 ¸ Started distribution of life insurance and mutual fund
¸ Launched proprietary trading platform Trader Terminal  FY05 FY06 FY07 FY08 FY09 FY10 9MFY11
2003 for retail customers
for retail customers Net Profit (` mn)
Net Profit (`
¸ Acquired commodities broking license 2,320
2004 ¸ Launched Portfolio Management Service
1,599 1,643
2005 ¸ Maiden IPO and listed on NSE, BSE 1,448

¸ Acquired membership of DGCX 756
2006 ¸ Commenced the lending business
492
217
¸ Commenced institutional equities business under IIFL
2007 ¸ Formed Singapore subsidiary, IIFL (Asia) Pte Ltd FY05 FY06 FY07 FY08 FY09 FY10 9MFY11
Networth (`
( mn))
¸ Launched IIFL Wealth
h d lh
2008 ¸ Transitioned to insurance broking model 16,053
17,995
14,892 15,447
¸ Acquired registration for Housing Finance
2009 ¸ SEBI in‐principle approval for Mutual Fund 
¸ Obtained Venture Capital license
Obtained Venture Capital license
3,251
1,943
¸ Received membership of the Singapore Stock Exchange 522
2010 ¸ Received membership of the Colombo Stock Exchange 
FY05 FY06 FY07 FY08 FY09 FY10 H1FY11
9MFY11

Results for Quarter ended December 31, 2010 17
 Business Model

• Equities, commodities broking • Wealth management Our service offerings

• Mutual funds distribution • Financial advisory
• Insurance distribution
Insurance distribution • Financing 
Financing Equities
• Loans

Insurance

Retail Affluent
Credit & finance

CUSTOMER
SEGMENTS Wealth management
Wealth management

Corporate Institutional
Asset management

Investment banking
• Investment banking • Institutional equities
• Corporate debt • Derivatives

Results for Quarter ended December 31, 2010 18
 Corporate Structure

India Infoline Ltd.
(Bloomberg: IIFL IN)

India Infoline
India Infoline  India Infoline 
India Infoline  Media &  IIFL Wealth 
Investment  Marketing IIFL (Asia) Pte IIFL Realty IIFL Capital IIFL Ventures
Commodities  Research  Management 
Services & Services 
Services

India Infoline  India Infoline  India Infoline  India Infoline 

Moneyline 
Housing  Distribution  Insurance  Insurance 
Credit
Finance Co. Services Brokers

* The above chart does not cover all group companies

Results for Quarter ended December 31, 2010 19
Vision and Strategy

Vision
“To become the Most Respected Company in the financial services space”

Business Strategy Customer Strategy People Strategy

¸ Continuously assimilate,  ¸ Drive stickiness through high  ¸ Attract exceptionally 
analyse and apply
analyse and apply  quality research & service
quality research & service talented and driven people
talented and driven  people 
knowledge to power  ¸ Maintain cutting‐edge  ¸ Ensure conducive 
superior financial decisions proprietary technology  environment 
¸ Focus on core competence in  ¸ Wide, multi‐modal
Wide, multi modal network 
network ¸ Liberal Ownership‐sharing
Liberal Ownership sharing
financial services serving as one‐stop shop to 
¸ Ensure de‐risked business  customers
through multiple products 
and diverse revenue streams
d di t

Results for Quarter ended December 31, 2010 20
 Management Team
¸ TTeam with impeccable academic and professional credentials
ith i bl d i d f i l d ti l
¸ Open door, transparent and performance oriented culture
¸ Increasing level of employee ownership

Management Team

Chairman and Managing Director Nirmal Jain Executive Director R. Venkataraman

Institutional  Equities H. Nemkumar Finance LP Aggarwal

Investment Banking Ajit Menon, Donald D’Souza Compliance R Mohan

Consumer Finance
Consumer  Finance Pratima Ram
Pratima Ram Operations Narendra Jain
Narendra Jain

Retail Broking Nandip Vaidya Audit & Risk Upendra Jaiswal 

Wealth  Management Karan Bhagat Human Resources Capt Rahul Sharma

International Operations Bharat Parajia Technology Sankarson Banerjee

Deepesh Pandey, Manish 
Offshore Asset Management
Srivastava
Insurance Distribution Mukesh Kumar Singh
g

Verticals Corporate Functions

Results for Quarter ended December 31, 2010 21
Corporate governance
Eminent independent directors of group companies
Name Designation Brief Profile

• Joined State Bank in 1968 and became chairman in 2002
A.K. Purwar Independent Director • Became Chairman of  Indian Banks Association in the year 2005‐06
y g y
• Received CEO of the year’ and ‘Outstanding Achiever of the year’ award
• Chartered Accountant and partner  of Khimji Kunverji & Co
Nilesh Vikamsey Independent Director • Part of the Managing Council and heading the Corporate Members 
Committee of the Chamber of Tax Consultants (CTC)
• Director and Chief Executive of LIC Housing Finance Limited ‐1998 to 2002 
Kranti Sinha
Kranti Sinha Independent Director
Independent Director • Concurrently was the MD of LICHFL Care Homes
Concurrently was the MD of LICHFL Care Homes
• Served as Deputy President of Governing Council of Insurance Institute

• Joined the ‘Indian Police Service’ in 1967
M. N. Singh Independent Director • Worked as the chiefs of the crime branch of Mumbai Police, State CID and 
Anti‐Corruption Bureau

Category‐wise shareholding (%) Board Committees

Board Committees Key Role

11.7%
MFs, UTI,
, ,
FI, Banks 31.3% Audit Committee Supervise financial reporting process and ensure
Promoter &  compliance with statutory requirements
Promoter 
27.0% Compensation  Review compensation of Executive & Non – Executive 
Group
FIIs Committee Directors and senior employees
Public & 
Others Share Transfer
Sh T f & 
& R i i
Review investor grievances and ensure redressal to  
t i d d lt
Investor Grievance the satisfaction of the shareholders
30.0%

Results for Quarter ended December 31, 2010 22
How we differentiate ourselves

• Promoted by first generation professional entrepreneurs
Managerial depth
• Highly qualified and experienced Management team

• Net worth approximately `18 bn
Well‐capitalized
• Significant unutilized capacity to leverage

• Present at over 2,700 business locations across 500 cities across India
Present at over 2 700 business locations across 500 cities across India
Distribution reach
• Global footprint covers Colombo, Dubai, New York and Singapore

• The top management is driven by pride and reward of ownership
Owner‐mindset
Owner mindset
• To think and work like an owner is part of organization’s DNA

• Uniquely placed with proprietary front, mid and back office software
Technology edge
• Effectively harnessed technology to provide superior customer experience
Effectively harnessed technology to provide superior customer experience

• De‐risked and diversified business model across multiple revenue streams
De‐risked
• Multiple products across all segments of financial services

Results for Quarter ended December 31, 2010 23
 • Performance highlights

• Business review

• Corporate overview
Corporate overview

• Industry update

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)

Results for Quarter ended December 31, 2010 24
 Equities
Daily cash market turnover (US$bn)
Daily cash market turnover (US$bn) Daily derivatives market turnover (US$bn)
Daily derivatives market turnover (US$bn)

Source: Bloomberg, IIFL Research Source: Bloomberg, IIFL Research

Institutional Share of cash market volumes Increasing share of derivatives turnover in market

Source: Bloomberg, IIFL Research. Based on  provisional data from the exchanges Source: Bloomberg, IIFL Research

Results for Quarter ended December 31, 2010 25
 Insurance
APE yoy growth (%) – Dec 2010 APE market share (%) – Dec 2010

Source: IRDA Source: IRDA
APE growth YTD yoy (%) – Dec 2010 Annual life insurance premiums in USD bn (2008)
1
1
5
6
8
11
22
49
53
66
96
111
181
343
578

Source: IRDA 0 100 200 300 400 500 600 700

Source: IIFL Research
Results for Quarter ended December 31, 2010 26
 Mutual funds
Total AUM for the industry (` bn) 
Total AUM for the industry (` bn) – Dec 2010
Dec 2010 Top 5 AMCs contribution (` bn) 
Top 5 AMCs contribution (` bn) – Dec 2010
Dec 2010

Source: AMFI Source: AMFI
AUM by asset class (` bn) Domestic equity MFs have seen net outflows YTD (` bn)

Source: AMFI Source: IIFL Research

Results for Quarter ended December 31, 2010 27
 Capital raising and Fund flows
Capital raised through QIPs (` bn)  Capital raised through IPOs (` bn) 

Source: Bloomberg, IIFL Research Source: Bloomberg, IIFL Research

Net FII flows (US$bn) FDI inflows (US$bn)

Source: Bloomberg, IIFL Research Source: RBI, CMIE, IIFL Research

Results for Quarter ended December 31, 2010 28
 Thank you

Published in February 2011. © India Infoline Ltd 20010‐11.

India Infoline Ltd. All rights reserved. Regd. Off: IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B‐23, Thane Industrial Area, Wagle Estate, Thane – 400604.
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 for
the 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
person from any inadvertent error in the information contained in this publication.
publication The recipients of this report should rely on their own investigations.
investigations IIL and/or
its subsidiaries and/or directors, employees or associates may have interests or positions, financial or otherwise in the securities mentioned in this report.

29