IIFL Capital Services Limited
2,160words
36turns
3analyst exchanges
3executives
Management on call
R. Venkataraman
MANAGING DIRECTOR, IIFL SECURITIES LIMITED
Ronak Gandhi
CFO, IIFL SECURITIES LIMITED
Veenashree
INVESTOR RELATIONS, IIFL SECURITIES LIMITED
Key numbers — 32 extracted
Rs. 323 Crore
al markets. Coming to the September 30th numbers: Consolidated revenues for the quarter came in Rs. 323 Crores up 10% Q-o-Q. Brokerage income has increased by 12% on Q-o-Q basis to Rs. 163 Crores. Distributi
10%
ng to the September 30th numbers: Consolidated revenues for the quarter came in Rs. 323 Crores up 10% Q-o-Q. Brokerage income has increased by 12% on Q-o-Q basis to Rs. 163 Crores. Distribution incom
12%
d revenues for the quarter came in Rs. 323 Crores up 10% Q-o-Q. Brokerage income has increased by 12% on Q-o-Q basis to Rs. 163 Crores. Distribution income again increased by 33% on a Q-o-Q basis to
Rs. 163 Crore
rter came in Rs. 323 Crores up 10% Q-o-Q. Brokerage income has increased by 12% on Q-o-Q basis to Rs. 163 Crores. Distribution income again increased by 33% on a Q-o-Q basis to Rs. 54 Crores. Investment bankin
33%
e has increased by 12% on Q-o-Q basis to Rs. 163 Crores. Distribution income again increased by 33% on a Q-o-Q basis to Rs. 54 Crores. Investment banking decline by 16% on Q-o-Q basis to Rs. 24 Cro
Rs. 54 Crore
on Q-o-Q basis to Rs. 163 Crores. Distribution income again increased by 33% on a Q-o-Q basis to Rs. 54 Crores. Investment banking decline by 16% on Q-o-Q basis to Rs. 24 Crores against Rs. 29 Crores in the
16%
on income again increased by 33% on a Q-o-Q basis to Rs. 54 Crores. Investment banking decline by 16% on Q-o-Q basis to Rs. 24 Crores against Rs. 29 Crores in the previous quarter simply because of t
Rs. 24 Crore
d by 33% on a Q-o-Q basis to Rs. 54 Crores. Investment banking decline by 16% on Q-o-Q basis to Rs. 24 Crores against Rs. 29 Crores in the previous quarter simply because of the nature of business and incom
Rs. 29 Crore
basis to Rs. 54 Crores. Investment banking decline by 16% on Q-o-Q basis to Rs. 24 Crores against Rs. 29 Crores in the previous quarter simply because of the nature of business and income is booked when deals
14%
ss and income is booked when deals are closed. On a Y-o-Y basis Brokerage income has increased by 14% and Distribution income have increased by 6% whereas Investment banking has decreased because las
6%
On a Y-o-Y basis Brokerage income has increased by 14% and Distribution income have increased by 6% whereas Investment banking has decreased because last year quarter was quite good. Other income h
109%
ent banking has decreased because last year quarter was quite good. Other income has increased by 109% on a Q-o-Q basis to Rs 6.8 Crores and it has decreased by 65% on Y-o-Y basis. IIFL Se
Risks & concerns — 5 flagged
Just as we seem to have come out of the COVID pandemic the world has entered into volatile phase once again this time driven by economic and geopolitical events which are affecting market sentiments.
— R. Venkataraman
Though Indian markets has shown resilience still now, external shocks may keep the market volatile.
— R. Venkataraman
Investment banking decline by 16% on Q-o-Q basis to Rs.
— R. Venkataraman
So, I think that although everybody was saying that the banking system will come under load, but I think even currently almost all brokers have the technology, systems in place and this payout happened smoothly I do not think there is a big challenge.
— R. Venkataraman
And secondly on the F&O options volume they have actually gone really very high and have been sustainably increasing every month-on-month, what is the way you think about this whether is there further room of growth in terms of F&O volumes or possibly going ahead we might see some muted trend or even decline how would you see this?
— Prayesh Jain
Q&A — 3 exchanges
Q
Just a couple of questions firstly it is more on the industry front so firstly what happened at the time of payout that changed the rule change, did you face any challenges out there or how was the thing implemented?
R. Venkataraman
This payout of money which happened I think 7th October. I think this was industry wise phenomenon and it happened smoothly. So, I think that although everybody was saying that the banking system will come under load, but I think even currently almost all brokers have the technology, systems in place and this payout happened smoothly I do not think there is a big challenge. And within how much time the customers money would have come back to us? That is a good question I think money is slowly coming back. It took almost three, four days to come back. So, 80%, 85% would have come back in three
Q
So sir just first of all a feedback that conference call invite was not addressable easy even on the exchanges it was just an inclination and we did not have any details out there so first that is the feedback not too many people have received the invite on the conference call?
R. Venkataraman
First thank you for this feedback and I thought that we have said this yesterday to night to the m ailing we have. And secondly on the F&O options volume they have actually gone really very high and have been sustainably increasing every month-on-month, what is the way you think about this whether is there further room of growth in terms of F&O volumes or possibly going ahead we might see some muted trend or even decline how would you see this? You know Prayesh to be very frank if you had asked me this question 10 years ago when we were together that time I would have thought that the exchange
Q
If I look at the other expenses they have gone up like significantly Y-o-Y so at least wanted some more information as to the investment you are making in technology and your employee and how is just more details on that?
R. Venkataraman
Bulk of the other expenses growth has been on technology and marketing. So, those are the two items which have seen a growth and so basically going ahead also I would say that now on marketing would not grow so much. Technology it is a wild card and we have to keep on investing. One of the slides in the presentation speaks about collaboration with Fintech players like the kind of presentation speaks about it, so just wanted more details on that? So, basically what has happened is that earlier we wished to be a believer of doing all things in all. In the last one year even we have seen the Fint
Opening remarks
R. Venkataraman
Thank you. Good afternoon friends. At the outset, I take this opportunity to wish all of you a very Happy Diwali and best wishes for a prosperous New Year. I am R. Venkataraman, the Chairman and Managing Director of IIFL Securities and along with me are my colleagues Ronak Gandhi who is the CFO and Veenashree who looks after Investor Relations for the entire IIFL Group. Thank you for joining the second quarter FY23 Analyst Call. I hope all your near and dear ones continued to remain safe. Just as we seem to have come out of the COVID pandemic the world has entered into volatile phase once again this time driven by economic and geopolitical events which are affecting market sentiments. We are also entering into an era of high interest rates which central bankers across the globe are doing to rain in inflation. Though Indian markets has shown resilience still now, external shocks may keep the market volatile. Broking as a business has started gaining momentum and also IPO activities have
Coming to expenses
I think the expenses was flat which is employee cost was flat on a Q-o-Q basis but has increased 17% on Y-o-Y basis because of increase in headcount as well as increase in normal paying hikes which happened during this year. Finance cost was at Rs. 19 crores flat Q-o-Q and reduced 37% on Y-o-Y basis simply because last year we had borrowed highly for IPO funding this line item was not there. Admin cost was at Rs. 123 crores which had increased 11% Q-o-Q and 23% Y- o-Y primarily because of sub brokerage payout outs as well as increase in technology and marketing cost. Assets under management the custody stood at Rs. 1,18,000 crores, average turnover for the quarter was Rs. 1,35,000 crores BSE/NSE combined which was Rs. 1,700 crores in cash and about Rs. 1,33,000 crores in derivatives. Previous quarter was Rs. 1,26,000 crores which was about Rs. 1,500 in the cash segment and Rs. 1,25,000 crores in the derivative segment. With this I come to the end of my remarks and I will answer any que