Iifl Capital Services Ltd · NSE:IIFLCAPS
Iifl Capital Services — IIFL Securities — FY2020 Earnings Presentation
31 slides from Iifl Capital Services's earnings presentation, May 15, 2020
Slide 1: Cover letter to stock exchanges
May 15, 2020 The Manager, The Manager, Listing Department, Listing Department, The National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, 5 Floor, Plot C/1, G Block, Phiroze Jeejeebhoy Tower, Bandra - Kurla Complex, Bandra (E), Dalal Street, Mumbai 400 051. Mumbai 400 001. Tel No.: 2659
Slide 2: Investor Presentation
Investor Presentation For the quarter and year ended March 31, 2020 May 15 , 2020 IIFL Securities Limited NSE : IIFLSEC | BSE : 542773
Slide 3: Table of Contents
Table of Contents Section Contents Slide reference 1 Navigating through Covid-19 crisis 4-5 2 Financial Highlights 7–8 3 Business Segments and Strategy 10 - 10 4 Business Performance 12 – 23 5 Governance, Awards and CSR 25 – 27 6 Annexures 29 - 29 2
Slide 4: Navigating through Covid-19 crisis
Section 1: Navigating through Covid-19 crisis 3
Slide 5: Covid-19 Impact
Covid-19 Impact Covid-19 : An onslaught of unprecedented challenges • Global economy brought to a standstill • No clarity on when lockdown will be lifted • Recovery in economic activity unlikely in short run – challenges with safety, regulations & logistics, negative sentiments, and reduction in p
Slide 6: Navigating through the crisis
Navigating through the crisis Successfully migrated front, back, and mid-office to WFH environment • Arrangements for staff to work from home were undertaken before the lockdown announcement • Almost 100% staff working from home without any disruptions Business continuity without disruption, lev
Slide 7: Financial Highlights
Section 2: Financial Highlights 6
Slide 8: Consolidated Results (as per IND AS)
Consolidated Results (as per IND AS) Quarter and year ended March 31, 2020 Rs Mn Q4FY20 Q3FY20 Q-o-Q Q4FY19 Y-o-Y FY20 FY19 Y-o-Y Revenue from Operations 1,900.7 1,895.7 0% 2,065.4 (8%) 7,174.5 8,351.3 (14%) Other income 197.7 206.5 (4%) 90.4 119% 725.0 404.3 79% Total income 2,098.4 2,102.2 (0%) 2,
Slide 9: Financial Trends
Financial Trends Total Revenue (₹ Mn)* Profit after tax (TCI) (₹ Mn)* Return on Equity (%)* CAGR: 3% CAGR: 27% 9,472 35% 8,756 7,900 29% 29%^ 7,317 2,321^ 25% 1,798 1,721 1,145 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Net Worth (₹ Bn)* EPS (₹)* DPS (₹)* Book Value Per Share (₹) Di
Slide 10: Business Segments & Strategy
Section 3: Business Segments & Strategy 9
Slide 11: Business Segments and Strategy
Business Segments and Strategy Build High ROE, Low Risk Business A million retail customers, Risk mitigation- Client focus, avoid proprietary 675 institutional & 500 corporate clients Well capitalized Retail, Institutional Investment Mass Local, Banking Industry leading online affluent, Foreign, Cor
Slide 12: Business Performance
Section 4: Business Performance 11
Slide 13: Retail Broking and Distribution
Retail Broking and Distribution Institutional Broking Investment Banking 12
Slide 14: 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 15: Improving Customer Acquisition Trend
Improving Customer Acquisition Trend Customer Acquisitions (‘000) 48.7 44.6 34.5 28.3 25.1 25.2 19.0 21.3 18.3 16.0 7.8 9.8 10.6 5.0 5.8 6.3 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 IIFL Average Daily Turnover – Cash (₹ Bn)* IIFL
Slide 16: One Stop Shop for Financial Products
One Stop Shop for Financial Products Product offerings Mutual AIFs PMS IPO Insurance FDs Bonds Funds Life General Health NPS Loans Open architecture model in distribution MF and Insurance are retail focus products with good long term growth prospects Insurance premiums amounting to Rs 1,032 Mn
Slide 17: Retail Focus on Insurance and Mutual Funds
Retail Focus on Insurance and Mutual Funds Mutual Fund AUM (₹ Bn) SIP Transactions (Count) SIP AUM as at March 31, 2020 was ₹5.4 Bn 34.4 33.7 35.5 33.3 88,837 88,298 89,076 89,406 89,659 28.8 85,008 28.3 18.6 40,175 FY17 FY18 FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 FY17 FY18 FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY2
Slide 18: 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 19: Institutional Broking
Retail Broking and Distribution Institutional Broking Investment Banking 18
Slide 20: 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 675+ institutional (domestic and foreign) clients Wide customer base covering sovereign wealth funds, foreign portfolio investors, mutual funds, insuranc
Slide 21: 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 Universe Building Material Capital Goods Above US$ 10 bn 42 Cement C
Slide 22: Investment Banking
Retail Broking and Distribution Institutional Broking Investment Banking 21
Slide 23: Leading Investment Bank in India
Leading Investment Bank in India Rapidly growing franchise – ranked #1 in the league tables in FY19 #1 and FY20 in equity raising through IPOs for private sector corporates both in terms of number of IPOs and amount raised Strong pipeline and product diversity with presence in ECM, Private IIFL
Slide 24: Select Marquee Deals
Select Marquee Deals Select Equity Capital Market Transactions Ujjivan Small Finance RBL Bank CSB Bank Spandana Sphoorty Polycab India Bank Rs.10,000Mn Rs.27,002Mn Rs.4,097Mn Rs.12,009Mn Rs.13,453Mn IPO + Pre IPO QIP + Pref Allotment IPO IPO IPO Dec 2019 Dec 2019 Nov 2019 Aug 2019 Apr 2019 Select Pr
Slide 25: Governance, Awards and CSR
Section 5: Governance, Awards and CSR 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 ‘Company 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: Corporate Social Responsibility
Corporate Social Responsibility IIFL strongly believes in community development and sincerely undertakes multiple CSR initiatives focused around Education, Financial Literacy and Environment protection, among others. During the last quarter we also made humble contributions to the PM Cares fund and
Slide 29: Annexures
FL SECURITIES Section 6: Annexures 28
Slide 30: Annexure I - Corporate Structure and Ownership
Annexure I - Corporate Structure and Ownership Promoters Free Float 29.8% 35.4% 34.8% Retail & Institutional Member NSE, BSE, Regulated Broking, FPD, MCX, NCDEX, by SEBI, Investment Banking CDSL, NSDL PFRDA Major Subsidiaries IIFL Capital Inc. IIFL Facilities Services IIFL Insurance Limited Brokers
Slide 31: Thank You
Thank You Published in May 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 you on