Results for Quarter ending June 30

Q g th,, 2009

July 17, 2009
 Presentation structure

• Performance highlights

• Business review

• Corporate overview
Corporate overview

• Business strategy

• Industry

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)
2
Performance highlights‐ Q1FY10
Overall financial performance
Overall financial performance
¸ Quarterly Income at Rs2.57bn up 37% qoq
¸ EBIDTA margin for the quarter was 37.4%, as compared to 30.3% in the previous quarter
¸ PBT and PAT were at Rs816.9 mn, and Rs516.8mn, up 180% qoq and 104% qoq respectively

Equities
¸ Overall market share on the NSE stood at 3.63% compared to  3.53% in the previous quarter
¸ Average daily volumes stood at Rs32.25 bn as compared to Rs19.16 bn in Q4FY09, an increase of 68% qoq
¸ Strategic agreement with Interactive Brokers LLC will provide India Infoline clients access to 80 exchanges 
across 18 countries
across 18 countries

Life Insurance
¸ Commenced business for several insurance companies including Max New York Life Insurance, MetLife, 
Reliance Life Insurance, Birla Sunlife
, and Kotak Life Insurance
¸ Annualized Premium Income mobilized stood at Rs.38.40 crores
¸ While the outlook of the business will remain linked with the industry fortune, the company’s position as a 
broker will improve over next few quarters

Credit and Finance
Credit and Finance
¸ Re‐commenced Mortgage business in June 2009 given easing of credit markets
¸ Book size Rs9.22bn  at the end of June 2009

Wealth Management
¸ Assets under management crossed Rs20 bn
¸ Increased the base for families under advisory 
¸ Applied to the FSA in United Kingdom for licence

3
 Performance in pictures‐ Q1FY10
Performance review
Revenues (Rs Mn) EBITDA (Rs Mn)

30,000 27,667.8 12,000

26,904.5
25,633.9 9,982.6
25,000 10,000 9,581.2
23,039.6
8,790.7
,

20,000 18,696.7 8,000

6,088.8
15,000 6,000
4,364.6
10 000
10,000 4 000
4,000

5,000 2,000

- -
Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10

PBT (Rs Mn) EBITDA margin (%)
9,000 40% 37% 37%
8,168.6
7,770.3
8,000
32%
7,000 6,733.8
30%
26%
6,000
23%
5,000 4,535.5
20%
4,000
2,909.3
3,000
10%
2,000

1,000

- 0%
Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10
4
Financial highlights‐ Q1FY10
Rs Mn
Rs Mn  Q1FY10
Q1FY10  Q1FY09
Q1FY09  Q4FY09
Q4FY09  Y‐Y
Y‐Y  Q‐Q
Q‐Q 

Income from operations  2,562.6  2,684.0  1,867.1  ‐4.5% 37.3%

Equities brokerage & related   1,768.0  1,584.9  1,152.6  11.5% 53.4%
Financing and Investment  488.8  649.8  345.2  ‐24.8% 41.6%
M k ti
Marketing and online media 
d li di 96 1
96.1  175 8
175.8  169 3
169.3  ‐45.3%
45 3% ‐43.2%
43 2%
Life Insurance distribution   83.7  155.6  89.3  ‐46.2% ‐6.2%
Commodities brokerage & related   66.0  49.9  55.0  32.2% 19.9%
Wealth and Mutual fund advisory  50.9  63.5  55.4  ‐19.8% ‐8.1%
Merchant Banking  9.0  4.4  0.3  103.3% 2982.2%
Other income  0.8  6.5  2.6  ‐87.1% ‐68.2%
Total Income  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. Employee cost 
p y 642.8  626.2  632.6  2.7% 1.6%
C. Administration expenses  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%
Depreciation & amortisation
Depreciation & amortisation   134 1
134.1  85 0
85.0  122 7
122.7  57 7%
57.7% 9 3%
9.3%

Profit / (Loss) before tax  816.9  777.0  290.9  5.1% 180.8%

Provision for taxation  269.7  243.1  31.2  11.0% 765.8%

P fit/(L ) ft t
Profit/(Loss) after tax after extraordinary 
ft t di 547 1
547.1  534 0
534.0  259 8
259.8  2 5%
2.5% 110 6%
110.6%
Minority Interest   30.4  38.6  6.9  339.3%

Profit / (Loss) After Tax  516.8  495.4  252.9  4.3% 104.4%

 Presentation structure

• Performance highlights

• Business review

• Corporate overview
Corporate overview

• Business strategy

• Industry

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)
6
 Retail equities
Performance review
¸ Market share on NSE at 3.63% in Q1FY10 as 
Market share on NSE at 3 63% in Q1FY10 as
Retail customer base for equity broking
compared to 3.53% in the previous quarter
¸ Average daily turnover up 68% yoy to Rs32.25 bn in  800,000 
Number of clients
676,107
Q1FY10 as compared to Rs19.16 bn in the previous  700,000 
596,056 
quarter
t 600,000 

¸ Retail customer base has increased by 36% yoy to  500,000  438,864 

0.67 mn in Q1FY10 400,000 

¸ Tie‐up with Interactive brokers will provide clients  300,000 

access to 80 exchanges in 18 countries 200,000  150,000 

75,000 
100,000 
5,500 
0 
FY05 FY06 FY07 FY08 FY09 Q1FY10

Equities broking (Cash & FAO) IIL market share
2,500 Equities Brokerage Rs Mn (LHS) Av. Daily Vol (Rs.Mn) 40,000 4.5%
NSE Market Share
2150
35,000
2 000
2,000 1914 3.8%
3 8% 3 63%
3.63%
1768 30,000
1585
1483
1,500 25,000 3.2%
1125 1114 1153 20,000 3.03%

1,000 2.6%
15,000
692
10,000 1.9%
500
5,000
1.3%
0 0
Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09
Jun‐07 Sep‐07 Dec‐07 Mar‐08 Jun‐08 Sep‐08 Dec‐08 Mar‐09 Jun‐09
7
 Institutional equities
Performance review
¸ Trading for most local institutions and over 100 global investors in India
Trading for most local institutions and over 100 global investors in India
¸ Increased presence in the US markets by hiring of a senior resource stationed in New York
¸ 150+ stocks under coverage, targeting to double coverage universe
¸ In‐depth and thematic printed reports on ‘Gold’, ‘Protectionism’ and ‘India and CHina chartbook’ (a 
compendium of 100 charts comparing the 2 economies) were well received by clients
¸ Established credentials in executing large block deals
¸ Deal flow for the Investment banking division expected to improve with improving market sentiments

Research offering
Thematic research that Sizing Up India & China: 100
Sectoral special on Gold with goes far beyond balance charts to compare and
a foreword by ‘Jim Rogers’ sheets and P&L accounts contrast the two economies

8
 Insurance
Performance review
¸ Most leading private sector players in Life Insurance industry have recorded a yoy
Most leading private sector players in Life Insurance industry have recorded a yoy decline
¸ Insurance mobilization in Q1FY10 stood at Rs384 mn
¸ Product mix has been significantly changed to increase the contribution of endowment products
¸ Outlook of the business will remain linked with the industry fortunes, but the company’s position as a 
broker will improve over next few quarters

Changing product mix Mobilization (Rs Mn)
2,500  Mobilization (Rs mn)
Q1FY09 Q1FY10
1,945
2,000 

29% 27% 26% 1,500 

1,102
1,000  891 844
50% 806
1% 613
530
432 384
500 
23%

44%
ENDOWMENT HEALTH ‐
PENSION ULIP 2%
9
 Credit and finance
Performance review
Total portfolio size was Rs9 22bn as on June 30th, 2009
¸ Total portfolio size was Rs9.22bn as on June 30 2009
¸ Economy has shown signs of recovery and the demand for credit also is picking up
¸ Have  resumed secured lending against the security of residential and commercial property

Number of disbursals Portfolio break‐up
1,574 Q1FY09 Q1FY10
1,600 Secured loans
1,416
Unsecured loans
1,229
10%
1 200
1,200 16% 18% 17%

17%
800 12%
587
528 471
433
368
400 29
291
106 54% 56%
15 28
0
Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Personal Loan Mortagage Loan
Margin Funding LAS/Debenture 10
 Wealth management
Performance review
¸ Assets under management crossed Rs20 bn
Assets under management crossed Rs20 bn with increased traction for Family office offering
with increased traction for Family office offering
¸ Products include structures notes, NABARD and bonds, and long‐dated options
¸ Growing domestic and international presence
¸ Created markets for primary/secondary NABARD bonds, Long‐dated options and  FCCBs

I I F L  P r i vate   We a l t h ’s   P ro d u c t   P ro p o s i t i o n

Managed Accounts Advisory Accounts Executionary Platform Custody and Trust

¸ Independent  Asset  ¸ In‐house equity and  ¸ In‐house equity  ¸ Family Office 

Managers debt advisory  broking proposition
¸ Partners for the USD 
P t f th USD ¸ ‘Pure Advisory’ 
‘P Ad i ’ ¸ NBFC credit
NBFC dit ¸ Trust services and 
T t i d
200,000 opportunity agreements succession planning
¸ Commodity trading
¸ Commodity and  ¸ Derivatives and  ¸ Currency trading
currency PMS/trusts Options strategy
¸ Mutual Funds ¸ Real Estate advisory
¸ RE and PE Funds ¸ Private Placements
¸ International 
platform
p
¸ Structured Notes
¸ Term Cover insurance

11
Recent awards and accolades
Performance review

BEST BROKER ‐ MOST IMPROVED ‐ FASTEST GROWING ‐

INDIA INDIA LARGE BROKER
Awarded ‘Best Broker‐ Awarded ‘Most  Awarded ‘Fastest 
India’ by FinanceAsia Improved  d growing Equity 
as a part of its survey  brokerage’ in India  Broking House –
of financial services  by AsiaMoney as a  Large firms’ in India 
firms across Asia for  part of its survey of  for the year 2008 by 
2008 brokerages in 
g Dun & Bradstreet
countries across 
Asia for 2008

12
 Presentation structure

• Performance highlights

• Business review

• Corporate overview
Corporate overview

• Business strategy

• Industry

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)
13
 The journey so far
Corporate overview

Ê Housing Finance 
registration
Ê IIFL Wealth 
launched Ê In‐principle approval 
for Mutual Fund 
Ê Insurance broking 
approval Ê Venture Capital license
p
300 Ê FII registration
Ê ‘Best Broker’ award
Revenues EBITDA PBT PAT
256
250 241

200 Ê CLSA team joins
Ê Formed IIFL (Asia) 
USD Mn)

Pte Ltd
Ê Launched online 
150 trading
(U

Ê Li ti
Listing on 
Ê Became corporate  NSE, BSE Ê DGCX 
agent for ICICI  Ê Launched  membership 106 101
Prudential Ê Commodities  proprietary 
100 broking
Ê Started  trading platform
Ê Launched  71 73
Ê Launched  distribution of  Ê Launched PMS
financial products
financial products proprietary 
p p y 55 55
www.indiain
i di i
platform for  48
50 foline.com 
online trading  35 36
29
19 2218 19
9 3 8 6 5 12
2 3 4 3 2 2
0
2000 2001 2002 2003 2004 200
2005 2006 200
2007 2008 2009

-50

14
 Vision and strategy

Business Strategy
gy Vision Customer Strategy
gy
¸ Focus on core  ¸ Drive customer stickiness 
TO BECOME THE 
competence in financial  through quality 
MOST RESPECTED COMPANY IN 
services THE FINANCIAL SERVICES SPACE
advice, best value and a 
¸ Multiple products and 
d l hf l
delightful experience
diverse revenue streams  ¸ Cutting‐edge proprietary 
ensure de‐risked  ¸ Shareholders: High  technology for 
businesses
businesses  OC O
ROCE, ROE execution back office
execution, back‐office 
¸ Asset‐heavy or long‐
and customer service
¸ Customers: Value and 
gestation businesses  experience ¸ Wide, multi‐modal 
through separate JVs/
through separate JVs/  network serving as one
network serving as one‐
¸ Employees: Rewards and 
group companies stop shop to customers
growth

15
 Corporate structure

India Infoline Ltd.
(Bloomberg: IIFL IN)

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

India Infoline  India Infoline  India Infoline  India Infoline 

Moneyline
Housing  Distribution  Insurance  Insurance 
Credit Ltd.
Finance Ltd. Co. Ltd. Services Ltd. Brokers Ltd.

* The above chart does not cover all group companies

16
 Management team with proven track record
Corporate overview
¸ Attract and build a team with impeccable academic and professional credentials
Att t d b ild t ith i bl d i d f i l d ti l
¸ Open door, transparent and performance oriented culture
¸ Increasing level of employee ownership

Executive  Directors Non‐Executive Directors Independent Directors

Nirmal Jain, R Venkataraman Sat Pal Khattar A . K. Purwar, N.Vikamsey, K. Sinha

Key Management Personnel

Institutional  Equities H. Nemkumar, Vasudev Jagannath,  Finance Kapil Krishan

Aniruddha Dange

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

Consumer Finance
Consumer  Finance Apul Nayyar
Apul Nayyar Operations Narendra Jain
Narendra Jain

Retail Broking Nandip Vaidya Audit Upendra Jaiswal 

Wealth  Management Karan Bhagat, Yatin Shah Human Resources Capt R Sharma

International Operations Bharat Parajia Technology Titus G

Offshore Asset Management Deepesh Pandey, Manish 

Srivastava

Insurance Distribution Sateesh Kumar

Verticals Corporate Functions

17
 Presentation structure

• Performance highlights

• Business review

• Corporate overview
Corporate overview

• Business strategy

• Industry

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)
18
Well‐diversified financial services company
Business and Strategy

Our service offerings

Equities
• Equities • Wealth management
• Mutual funds • Advisory
Insurance
• Insurance • Financing 

Credit & finance
Retail Affluent
CUSTOMER
SEGMENTS
Wealth management
Corporate Institutional

• Investment banking • Institutional equities Asset Management

• Corporate debt • Derivatives

Investment banking

19
Business strategy
Business and Strategy

Focused on financial services De‐risked business model
• Equities Equities  Non‐equities
• Consumer finance Retail Institutional
• Investment banking
Investment banking Buy side
Buy‐side Sell side
Sell‐side
• Life Insurance Retail assets Retail liabilities
• Mutual Funds Mass‐affluent HNIs
• Wealth Management India International

STRATEGY
Operational  excellence Attract exceptional  people with 
owner mindset
• Innovative processes powered by  • Successful integration of 
cutting‐edge technology Institutional equities and Wealth 
• Use of technology is all pervasive
Use of technology is all pervasive M
Management teams
tt
• Risk Management has withstood  • Building up of the Asset  
trial by fire Management team
• Lean and scalable platform with  • Entrepreneurial and professional 
low fixed costs
low fixed costs environment
• Liberal ‘Ownership‐sharing’

20
How we differentiate ourselves
Business and Strategy

• Promoted by first generation professional entrepreneurs
Managerial depth • Management team unmatched in terms of professional 
credentials, experience as well as academic background

• Net worth approximately Rs 16 bn with negligible debt
Well‐capitalized
• Well‐funded to not just weather but take advantage of downturn

• Present at 1,616 business locations, with over 500 own branches
Distribution reach
• Effectively cover 445 cities across India

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

• Only player with proprietary trading platform
Technology edge • Effectively harnessed technology to facilitate processes and provide 
superior customer experience

21
Focus going forward
Business and Strategy

Execution to 
Execution to Operational 
Operational Customer 
Customer
Skill development
advisory excellence experience

• Focus on  • Focus on  • Focus on  • Focus on 

sharpening
sharpening  perfecting
perfecting  attracting the
attracting the  personalized
personalized 
research  processes best talents  skilled service 
capabilities 

• Training and  • Leveraging  • Giving them  • Use of 

development  technology  superior  technology to 
of human  environment  give the best 
resources and training experience

22
 Presentation structure

• Performance highlights

• Business review

• Corporate overview
Corporate overview

• Business strategy

• Industry

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)
23
Long term macro growth drivers
Industry overview

1 Growing economy‐ India’s GDP expected to grow at 8%, Financial services 
likely to grow at 2x GDP

2 Favorable demographics‐ 60% of the population is below 35years of age 
about to enter prime age for savings and investing

3 Under‐penetrated market‐ Very low penetration of equity assets as well as 
mortgages

4 Capital inflow‐ Indian economy will continue to attract foreign capital owing 
to its capacity to absorb capital productively

5 Consolidation in Indian financial services sector, driven by increasing need

Consolidation in Indian financial services sector, driven by increasing need 
for Capital, Compliance and Research expertise

24
 Industry
Total cash market turnover (Rs mn)
Total cash market turnover (Rs mn) Total derivatives market turnover (Rs mn)
Total derivatives market turnover (Rs mn)
600,000  1,200,000 

500,000  1,000,000 

400,000  800,000 

300,000  600,000 

200,000  400,000 

100,000  200,000 

‐ ‐
Apr‐05 Apr‐06 Apr‐07 Apr‐08 Apr‐09 Apr‐05 Apr‐06 Apr‐07 Apr‐08 Apr‐09
Source: NSE, BSE Source: NSE,

Share of top ‘N’

Share of top  N  brokers (%)
brokers (%) Demat accounts  (mn)
accounts (mn)

Top 5 Next 5 Next 15 Next 50 Next 25 17

80
16
70 15
60 14
13
50 12
40 11
10
30 9
20 8
7
10 6
0 5
Apr‐04 Feb‐05 Dec‐05 Oct‐06 Aug‐07 Jun‐08 Apr‐09
Source: NSE Source: NSDL, CDSL
 Industry
Total AUM for the industry (Rs bn)
Total AUM for the industry (Rs bn) Top 5 AMCs contribution (Rs bn)
Top 5 AMCs contribution (Rs bn)

8,000 
6,717  1,200 
7,000 
6,000  5,327  1,000 
4,940 
5 000
5,000  800 
4,000  3,264  600 
3,000  2,319 
400 
2,000  1,396  1,496 
795  200 
1,000 
,
‐ ‐
Mar‐03 Mar‐04 Mar‐05 Mar‐06 Mar‐07 Mar‐08 Mar‐09 Jun‐09 Reliance Mutual  HDFC Mutual  ICICI Prudential  UTI Mutual  Birla Sun Life 
Source: AMFI Fund Fund Mutual Fund Fund Mutual Fund
Source: AMFI

APE market share (%)

APE market share (%) APE growth yoy (%)
APE growth yoy
110 
105 Private Players LIC Private Players LIC

90 80 
85 72  80 
75 73
50  54 
64 63 39 
60 59 35 
29 
48 55 20  19 
45 14  16 
7  4 
52 45
30 37 41 (10) (4) (5)
36 (6) (12)
27 (19) (25) (17) ((18)
(16)
)
15 (23) (23) (23)
15 (40) (27)
(39)
0
(70) (61)
FY04 FY05 FY06 FY07 FY08 FY09 2M FY10
May‐08 Jul‐08 Sep‐08 Nov‐08 Jan‐09 Mar‐09 May‐09
Source: IRDA
Source: IRDA Source: IRDA
 Thank you

Published in July 2009. © India Infoline Ltd 2009‐10.

India Infoline Ltd. All rights reserved. Regd. Off: 75, Nirlon Complex, Off W E Highway, Goregaon (E) Mumbai‐400 063.
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 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.

27