Quarterly results and strategy review October 22, 2005

Transcription

1 Quarterly results and strategy review October 22, 25

2 Presentation structure Review of un-audited results for SQ 25 Review of core businesses Review of business strategy Results Q2, 25 2

3 Review of un-audited results- SQ 25 Results Q2, 25 3

4 Consolidated results No Particulars Half year ended YoY Quarter ended YoY QoQ Year ended Rupees in millions 3-Sep-5 3-Sep-4 growth % 3-Sep-5 3-Sep-4 growth % growth % 31-Mar-4 Audited 1 Income from operations Equities Brokerage & Related Income Distribution Commission & Fees Commodities Brokerage , , Life Insurance Commission Online & Other Media Income Income from Investment & Financing Other Income Total Income Total Expenditure A Direct Cost (234.1) (72.9) (154.) (34.) (238.1) B Employee Cost (16.9) (39.3) (66.3) (21.3) (13.2) C Administration Expenses (115.2) (5.5) (68.) (25.) (133.) 4 Interest (17.8) (1.6) (12.4) (1.) 1, (15.1) 5 Depreciation & Amortization (29.) (8.9) (2.7) (5.3) (25.5) 6 Profit / (Loss) Before Tax Provision for Taxation (79.7) (2.4) (52.7) (1.7) (4.8) 8 Profit / (Loss) After Tax EBIDTA EBIDTA % Results Q2, 25 4

5 Quarterly results highlights Income and profit up yoy 198% and 191% Income and profit up qoq 76% and 68% Strong growth in all businesses EBIDTA margin maintained above 4% Capex of over Rs75 million- HO, Branches, Technology In H1 FY6, broking accounted for 7% of the topline Core business growth (%) 3 25 YoY QoQ Equities Distribution Life Insurance Business Mix (SQ 25) Others Content 7% 4% Insurance 7% Commodities 1% Distribution 11% Equities 7% Results Q2, 25 5

6 Review of core businesses Results Q2, 25 6

7 Broking Delivery Volume Share (%) 4% 35% 3% 25% 2% 15% 1% 5% % 31-Oct-4 31-Jan-5 3-Apr-5 31-Jul-5 Robust QoQ income growth of 8 % YoY growth at 253 % Cash volumes grew to Rs153 bn in SQ 5, I.e. 71% qoq growth as against NSE 47 % F&O volumes grew to Rs136 bn in SQ 5, I.e. 81% qoq growth as against NSE 6 % Growth driven by aggressive customer acquisitions, superior research & technology Regional Contribution (%) 4% 3% 2% 1% % MAH DELHI GUJ TN A P UP M P PUNJAB W B K'TAKA R'STHAN KERALA Total turnover (Rs.bn) F&O Cash Oct-4 Jan-5 Apr-5 Jul-5 Sep-5 Results Q2, 25 7

8 Mutual funds & distribution In HY- Sep 5, total mobilization at Rs2 bn, i.e. 135 % yoy growth No. of transactions were 62646, i.e. a YoY growth of 51.3% Mutual funds contribution to income was Rs 53.5 mn. Trail fee rose to Rs 6.6 mn in SQ 25. Mutual fund mobilization (Rs mn) 8, 6, 4, 2, Apr-4 Jul-4 Oct-4 Jan-5 Apr-5 Jul-5 No. of transactions 2, 15, 1, 5, Apr-4 Jul-4 Oct-4 Jan-5 Apr-5 Jul-5 Trail fee (Rs mn) Q1 5 Q2 5 Q3 5 Q4 5 Q1 6 Q2 6 Results Q2, 25 8

9 Life insurance Premium mobilization grew to Rs128 mn in SQ 25, i.e a 83 % qoq growth Number of lives assured at 248 Private sector premium mobilization was Rs14.5bnbn in SQ 5, 72% QoQ growth Premium mobilized by IIL (Rs mn) Apr-4 Jul-4 Oct-4 Jan-5 Apr-5 Jul-5 Private sector premium (Rs bn) No of lives assured by IIL 7, 6, 3, 5, 4, 2, 3, 2, 1, Apr-5 May-5 Jun-5 Jul-5 Aug-5 Sep-5 1, Apr-5 Jun-5 Aug-5 Results Q2, 25 9

10 Commodities broking Portfolio management Total turnover at 34 bn, i.e. 142 % QoQ growth Brokerage earned at 9.6 mn, i.e. 128 % QoQ growth Total AUM at 284 mn, I.e 7 % growth over previous quarter No. of customers at 255 as against 16 for previous quarter ended. Monthly volume trend (Rs bn) Apr-5 May-5 Jun-5 Jul-5 Aug-5 Sep-5 AUM trend (Rs mn) Apr-5 May-5 Jun-5 Jul-5 Aug-5 Sep-5 Results Q2, 25 1

11 Review of business strategy Results Q2, 25 11

12 Key elements of strategy Aggressive customer acquisition Beach-head for retail customers in financial services Position as vendor- neutral independent distributor De- risk the business model with product bouquet Results Q2, 25 12

13 Strategy- Why, What, How Why Huge, growing and untapped market Cross sell opportunities Need for comparison and advised shopping for customers Guard against stock market cycles What Aggressive customer acquisition Beach-head for retail customers Vendor-neutral independent distributor De-risked business model How Thrust on online More branches More RMs One stop Investment shop Technology Agency tie up with all key principals Research focus Product mix to mitigate cyclical risk Results Q2, 25 13

14 Aggressive customer acquisition Current base of customers is small fraction of potential Customer acquisition requires enhanced physical presence and people We have stepped up our effort Growth in no of employees 4 Net additions (LHS) 3 Total number (RHS) 2 1 Apr-4 Jul-4 Oct-4 Jan-5 Apr-5 Jul Growth in no of registered customers Growth in no of branches Apr-4 Jul-4 Oct-4 Jan-5 Apr-5 Jul-5 Apr-4 Jul-4 Oct-4 Jan-5 Apr-5 Jul-5 Results Q2, 25 14

15 Beach-head for retail customers Customers prefer fewer relationship Leverage customer relationships to get maximum share of customer s savings Opportunity to capture new customers and own relationship for life IPO boom US$ bn Amount (L) No. of issues (R) E 1,5 1, Consolidation in broking industry % Top 5 Top 1 Top Growth in trading volumes US$ bn Equity F&O Total 1, * Results Q2, 25 15

16 Vendor neutral independent distributor Clear edge over banks/ institutions In broking, multiple front ends, flexible margining Comparison shopping with unbiased advice Multiple bank payment gateways Product categories catered to Your one-stop shop for FDs/ PPF/ Post Office IDBI/ ICICI Bonds Life Insurance GoI Bonds Equities broking Commodities broking Portfolio Management Mutual Funds Multiple front ends Multiple access points Online Offline Over the phone Relationship Managers Middle-office Risk Management System Back-office Funds and Securities accounting and management Seamless integration using Technology Results Q2, 25 16

17 De-risked product mix Equities broking Commodities broking Mutual funds Research Portfolio Management Loan products Vision is to be the leading player in financial services space Life insurance General insurance Investment banking Planned addition phase 1 Planned addition phase 2 Results Q2, 25 17

18 Thank you Results Q2, 25 18