Iifl Capital Services Ltd · NSE:IIFLCAPS
Iifl Capital Services — IIFL Securities — Q3 FY2020 Earnings Presentation
28 slides from Iifl Capital Services's earnings presentation, Feb 7, 2020
Slide 1: Cover letter to stock exchanges
IIFL SECURITIES February 07, 2020 The Manager, The Manager, Listing Department, Listing Department, The National Stock Exchange of India Ltd., SSE Limited, Exchange Plaza, 5 Floor, Plot C/1, G Block, Phiroze Jeejeebhoy Tower, Sandra - Kurla Complex, Sandra (E), Dalal Street, Mumbai 400 051. Mumbai 4
Slide 2: Investor Presentation
Investor Presentation NSE : IIFLSEC BSE : 542773 IIFL Securities Limited indiainfoline.com | iiflcap.com
Slide 3: Key highlights
Key highlights 1. Financial highlights for the period ended December 31, 2019 i. Total revenue grew by 14% q-o-q to ` 2,102 Mn for the quarter ii. Profit before tax grew 30% q-o-q to ` 630 Mn for the quarter iii. Profit after tax (TCI) grew 94%* q-o-q to ` 458 Mn for the quarter iv. Annualised Retur
Slide 4: Table of Contents
Table of Contents Section Contents Slide reference 1 Financial Highlights 4–6 2 Business Segments and Strategy 7-8 3 Business Performance 9 – 21 4 Other Updates 22 – 23 5 Governance and Awards 24 – 27 3
Slide 5: Financial Highlights
Section 1: Financial Highlights 4
Slide 6: Consolidated Results (as per IND AS)
Consolidated Results (as per IND AS) Quarter ended December 31, 2019 Rs Mn Q3FY20 Q2FY20 Q-o-Q Q3FY19 Y-o-Y 9MFY20 9MFY19 Y-o-Y FY19 Revenue from Operations 1,895.7 1,736.8 9% 1,917.8 (1%) 5,273.8 6,285.5 (16%) 8,351.3 Other income 206.6 111.8 85% 115.9 78% 527.3 314.3 68% 404.3 Total income 2,102.3
Slide 7: Financial Trends
Financial Trends Total Revenue (₹ Mn)* Profit after tax (TCI) (₹ Mn)* Return on Equity (%)* CAGR: 9% CAGR: 23% 9,472 35% 8,756 29% 27%^ 7,317 25% 5,801 1,798 1,949^ 1,721 1,145 FY17 FY18 FY19 9MFY20 FY17 FY18 FY19 9MFY20 FY17 FY18 FY19 9MFY20 Net Worth (₹ Bn)* EPS (₹)* DPS (₹)* Book Value Per Share
Slide 8: Business Segments and Strategy
Section 2: Business Segments and Strategy 7
Slide 9: Customer Segments
Customer Segments RETAIL INSTITUTIONAL RM Self- Partner Institutional Investment Serviced Serviced Serviced Equities Banking Foreign Portfolio Corporates Primary Mass Affluent, Millenials, Retail clients Investors , Mutual looking to raise customer High Value Do-it-yourself in smaller Funds, Private
Slide 10: Business Performance
Section 3: Business Performance 9
Slide 11: Retail Broking and Distribution
Retail Broking and Distribution Institutional Broking Investment Banking 10
Slide 12: Legacy business in Retail Broking and Distribution
Legacy business in Retail Broking and Distribution Legacy of about two decades in retail broking and financial product distribution. Business offerings comprise equity, commodities and currency broking, DP services portfolio advisory and distribution of investment products Assets Under Managemen
Slide 13: One Stop Shop for investment products
One Stop Shop for investment products Product offerings Mutual Other Insurance IPOs Funds Products Life General Health PMS AIFs Loans NPS FDs Bonds MF and Insurance are retail focus products with good long term growth prospects SIP transactions of a monthly average of 89k for the period ended De
Slide 14: Retail focus on Insurance and Mutual Funds
Retail focus on Insurance and Mutual Funds Mutual Fund AUM (₹ Bn) SIP Transactions (Count) SIP AUM as of December 31, 2019 is ₹7.1Bn, up 33% y-o-y 34.4 33.7 35.5 33.3 88,837 88,298 89,076 89,406 28.8 85,008 18.6 40,175 FY17 FY18 FY19 Q1FY20 Q2FY20 Q3FY20 FY17 FY18 FY19 Q1FY20 Q2FY20 Q3FY20 Life Insu
Slide 15: Mobile First approach to retail customers
Mobile First approach to retail customers Technology has been the cornerstone for IIFL’s strong presence in the broking industry The self-serviced segment is catered to with a Digital, Mobile First strategy. Our mobile applications IIFL Markets and IIFL Mutual Funds are widely used for mobile trad
Slide 16: Institutional Broking
Retail Broking and Distribution Institutional Broking Investment Banking 15
Slide 17: Pedigreed Institutional Broking Franchise
Pedigreed Institutional Broking Franchise Among the top franchises on the street, 83 member team with offices in Mumbai, New York and London 650+ institutional (domestic and foreign) clients Wide customer base covering sovereign wealth funds, foreign portfolio investors, mutual funds, insuranc
Slide 18: Strong Research Capabilities
Strong Research Capabilities Comprehensive Research Coverage across Sectors Sector-wise break up of stocks under coverage Market Cap^ break up of stocks under coverage Agriculture Auto IIFL Research Banking & Fin Market Cap bracket Building Material Universe Capital Goods Above US$ 10 bn 42 Cement C
Slide 19: Turnover and Market Share – Retail & Institutional Broking
Turnover and Market Share – Retail & Institutional Broking IIFL Average Daily Turnover – Cash (₹ Bn)* IIFL Average Daily Turnover – Total (₹ Bn)* Annual Quarterly Annual Quarterly 12.6 13.3 226.4 11.5 11.6 11.3 11.2 11.2 11.4 210.0 10.8 191.6 177.1 165.9 170.2 169.3 163.0 139.9 FY18 FY19 Q1FY19 Q2FY
Slide 20: Investment Banking
Retail Broking and Distribution Institutional Broking Investment Banking 19
Slide 21: Leading Investment Bank in India
Leading Investment Bank in India Rapidly growing franchise – ranked #1* in the league tables in #1 FY18 and FY19 in equity raising for private sector corporates Strong pipeline and product diversity with presence in ECM, Private Equity and DCM IIFL ranks #1 Investment Banker Advising a large n
Slide 22: Select Marquee Deals
Select Marquee Deals Completed Transactions in FY19 and 9MFY20 Ujjivan Small Finance RBL Bank EtechAces Marketing CSB Bank and Consulting LoanTap Bank Rs.10,000Mn Rs.27,002Mn Rs.1,750mn Rs.4,097Mn Rs.800Mn IPO + Pre IPO QIP + Pref Allotment Private Round IPO Private Equity Dec 2019 Dec 2019 Dec 2019
Slide 23: Other Updates
SECURITIES Section 4: Other Updates
Slide 24: High-quality Portfolio of Commercial Properties
High-quality Portfolio of Commercial Properties Historically strategic offices acquired by IIFL, leased primarily to Group companies Well-spread portfolio of commercial office space and shops Self-occupied building area of 412,000 sq. ft. Commercial office space and shop area of over 222,000
Slide 25: Governance and Awards
Section 5: Governance and Awards 24
Slide 26: Led by an Independent and Illustrious Board
Led by an Independent and Illustrious Board R Venkataraman, Managing Director Kranti Sinha, Chairman, Independent Director Co-founder of IIFL Previous experience with ICICI Bank, Former CEO of LIC Housing Finance Barclays, GE Capital Former Deputy President Governing MBA from IIM Bangalore
Slide 27: Awards & Recognitions
Awards & Recognitions Best Product Launch PR Campaign ‘'Leader in Go Green Initiative " Award 'Çompany of the 2019’ Award for AAA - Advisor Year 2019' Anytime Anywhere by At The CEO Magazine Corporate Communications & PR Awards 2019 At NSDL Start Performer Awards 2019 “Leadership in Customer Service
Slide 28: Thank You
Thank You Published in February 2020 IIFL Securities Limited. 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 y