IIFL Finance (IIFL) Q4 04/05 earnings summary

Executive summary

• FY05 consolidated income reached Rs 772.6mn, up 115% YoY, with PAT of Rs 216.8mn; growth was led by broking and life insurance distribution.

• A Rs 90 crore IPO was priced at Rs 76/share after 7.22x subscription; shares listed on BSE and NSE on May 17, 2005.

• Strategy centers on a one-stop investment platform, technology-led delivery and wider national reach, while prioritizing risk controls and long-term growth.

Financial highlights

• Consolidated income was Rs 772.6mn vs Rs 359.9mn; PAT was Rs 216.8mn vs Rs 74.8mn in FY04.

• Standalone operating income rose 129% YoY to Rs 212.2mn; PAT increased 158% to Rs 174.7mn.

• Standalone EBITDA was Rs 195.8mn vs Rs 87.7mn; PBT was Rs 190.1mn vs Rs 68.2mn.

• Consolidated accumulated losses fell 93% to Rs 16.37mn from Rs 233.19mn in FY04.

Outlook and guidance

• Plan to add 73 branches in 50 cities, expanding from 77 branches across 36 locations to 150 branches by Dec. 31, 2006.

• Management expects investment advisory demand to benefit from rising disposable income, underpenetrated investment markets and broader internet use; no short-term performance targets were set.

• Commodities broking was in market testing and investment phase, with significant expansion planned for FY06.