Quarterly Results – Q3 FY09 (Oct- Dec’08)January 21, 2009

2

• Performance highlights- Q3 FY09

• Business review

• Corporate overview

• Industry

Presentation structure

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)

Performance highlights

Highlights

Overall financial performance- Quarterly Income at Rs 2.3bn, down 17% qoq due to adverse market conditions. Although employee and admin costs were lower as compared to the previous quarter, cost incidence per rupee of revenue was higher. EBIDTA margin for the quarter was 26.4%, as compared to 39.6% in the previous quarter. PBT and PAT were at Rs 453.6mn, and Rs297.8mn, down 33% qoq and 25.9% qoqrespectively. The Board approved an interim dividend of Rs2.8 per share.

Equity business - Our market share in Cash Market segment moved up, but overall market share was a tad lower at 3.6%. Our research visibility improved considerably and we continue to invest in improving performance of the product and quality of service.

Life Insurance - Business faced rough weather due to market conditions. However, we are now licensed as a broker, eligible to sell insurance of all companied. We commenced selling of LIC products and are ramping up infrastructure for expanding our product range. It will atleast about 2-3 quarters to scale up our insurance broking business optimally

Other businesses - Finance and credit income was up 5% qoq. Commodities broking daily volumes fell 6% qoq. The company plans to invest in its Singapore subsidiary for exploring opportunities to expand offshore asset management, wealth management and broking businesses

3

Financial performance highlights

4

Financial highlights- Oct-Dec 2008 QuarterPerformance highlights

Rs Mn Q3 FY09 Q2 FY09 Q3 FY 08 Y-Y Q-Q

Income from operations 2,295.1 2,760.5 3,101.6 -26.0% -16.9%Equities brokerage & related 1,113.7 1,482.7 2,149.6 -48.2% -24.9%Financing and Investment 850.6 808.5 369.1 130.5% 5.2%Marketing and online media 162.5 205.1 189.7 -14.3% -20.7%Life Insurance distribution 77.9 158.8 287.9 -73.0% -51.0%Commodities brokerage & related 55.4 57.4 43.4 27.7% -3.5%Wealth and Mutual fund advisory 33.4 31.0 57.0 -41.3% 7.8%Merchant Banking 1.6 16.9 4.9 -66.7% -90.3%Other income 8.8 6.3 5.1 72.7% 39.9%Total Income 2,304.0 2,766.8 3,106.7 -25.8% -16.7%

A Direct cost 510.8 610.6 681.4 -25.0% -16.3%B Employee cost 719.8 758.4 772.0 -6.8% -5.1%C Administration expenses 464.5 518.7 422.8 9.9% -10.5%

EBITDA 608.9 879.1 1,230.5 -50.5% -30.7%Interest 56.8 116.0 135.1 -58.0% -51.1%Depreciation & amortisation 98.5 89.7 75.3 30.8% 9.9%

Profit / (Loss) before tax 453.6 673.4 1,020.1 -55.5% -32.6%

Provision for taxation 111.9 235.4 359.9 -68.9% -52.4%

Profit/(Loss) after tax before extraordinary items & minority interest 341.6 438.0 660.2 -48.3% -22.0%Extraordinary itemsProfit/(Loss) after tax after extraordinary 341.6 438.0 660.2 -48.3% -22.0%Minority Interest 43.8 35.9 8.8 22.1%

Profit / (Loss) After Tax after minority interest 297.8 402.1 651.4 -54.3% -25.9%

5

Financial highlights- 9 months Apr-Dec 2008Performance highlights

Rs Mn 9MFY09 9MFY08 Y-Y

Income from operations 7,739.6 6,368.1 21.5%Equities brokerage & related 4,181.3 3,966.5 5.4%Financing and Investment 2,308.9 823.8 180.3%Marketing and online media 543.4 525.5 3.4%Life Insurance distribution 392.2 778.7 -49.6%Commodities brokerage & related 162.7 118.7 37.1%Wealth and Mutual fund advisory 128.0 127.6 0.3%Merchant Banking 23.0 27.4 -16.1%Other income 21.6 25.7 -15.7%Total Income 7,761.2 6,393.8 21.4%

A Direct cost 1,683.3 1,384.4 21.6%B Employee cost 2,104.4 1,619.8 29.9%C Administration expenses 1,487.4 1,044.4 42.4%

EBITDA 2,486.2 2,345.2 6.0%Interest 309.0 243.8 26.7%Depreciation & amortisation 273.3 201.1 35.9%

Profit / (Loss) before tax 1,904.0 1,900.2 0.2%

Provision for taxation 590.4 661.1 -10.7%

Profit/(Loss) after tax before extraordinary items & minority interest 1,313.6 1,239.1 6.0%Extraordinary items - 290.4 Profit/(Loss) after tax after extraordinary 1,313.6 948.7 38.5%Minority Interest 118.3 8.8

Profit / (Loss) After Tax after minority interest 1,195.3 939.9 27.2%

6

• Performance highlights- Q3 FY09

• Business review

• Corporate overview

• Industry

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)

Presentation structure

606 638 692

1125

2150

1914

15851483

1114

0

5000

10000

15000

20000

25000

30000

35000

40000

0

500

1000

1500

2000

2500

Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08

Market share on NSE at 3.60% in Q3FY09, was marginally lower than 3.89% in the previous quarterAverage daily turnover down 43% yoy to Rs 19.98bnIn view of adverse market conditions, the company has initiated action on cost rationalizationThe company continues to aggressively acquire customers and number of broking customers was up to 5.62 lacsNotwithstanding difficult market conditions, the company continued to invest in improving performance of the product and research coverage and depth

Retail customer base for equity broking

7

2.37%

3.60%

1.3%

1.9%

2.6%

3.2%

3.8%

4.5%

Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08

NSE Market Share

5,500

75,000

150,000

438,864

495,636 549,629 562,384

0

100,000

200,000

300,000

400,000

500,000

600,000

FY05 FY06 FY07 FY08 Q1FY09 Q2FY09 Q3FY09

Number of clients

Business review

Broking

IIL market shareEquities broking (Cash & FAO)

Equities Brokerage Rs Mn (LHS)

Av. Daily Vol (Rs.Mn)

We received our Broking license, which will allow us to expand product range and increase cross sell of insurance productsTill now, the company was corporate agent of ICICI Prudential. The company has been the largest corporate agent for ICICI Prudential for the last 5 yearsWe have already started selling products of LIC and have also tied up with Max New York LifeWe have consciously moved Product mix towards endowment products- for long term sustained and stable growth. Endowment products typically fetch lower annual premium but for a much longer term.

(Rs Mn)

8

Q2FY09 Q3FY09Q1FY09

ENDOWMENT  HEALTHPENSION ULIP

Business review

Insurance

Life Insurance – issuances for trailing four quarters Life insurance – Product mix

2,597

3,601 3,725 3,9014,150

4,4684,744 4,697

4,071

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Dec- 06 Mar- 07 Jun- 07 Sep- 07 Dec- 07 Mar- 08 Jun- 08 Sep- 08 Dec- 08

Incremental business of personal loans and mortgages was negligible due to delibrate suspension of business in view of difficult credit markets. NPAs for total portfolio as of 31st Dec were less than 1% of book and are fully provided for.Total portfolio size was Rs8.4bn in Q3FY09Increased emphasis on risk management and due diligenceGoing forward, focus is on secured lending business, primarily mortgages

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Business review

Credit and Finance

Number of disbursals Total portfolio as at Quarter-end (Rs Mn)

-

500

1,000

1,500

2,000

2,500

3,000

3,500

Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09

Business loans Personal loans Mortgage loans

244941

3823

8095 8110 8376

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09

EOP (Rs Mn)

The company proposes to setup subsidiaries in key marketsThe company has plans to commence research coverage of some key Asian marketsThe company plans to launch its offshore asset management businessThe management team for AMC is already in place, support team being hiredThe company sees opportunity to grow this business on the back of its research competence and superior understanding of Indian corporateOur international offices will support our wealth management business as well

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Business review

International expansion

India Infoline

advantage

Offerings

Leveraging the ‘India advantage’

Research: Cost & Quality

Team with hands-on experience

Subsidiaries in major markets

OffshoreAsset

Management

Broking & Investment

banking in Asia

Broking & Investment

banking in Asia

Recent Awards and Accolades

MOST IMPROVED -INDIA

Awarded ‘Most Improved

brokerage’ in India by AsiaMoney as a part of its survey of

brokerages in countries across

Asia for 2008

BEST BROKER -INDIA

Awarded ‘Best Broker- India’ by

FinanceAsia as a part of its survey of

financial services firms across Asia for

2008

11

12

• Performance highlights- Q3 FY09

• Business review

• Corporate overview

• Industry

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)

Presentation structure

2 3 4 39

19

55

106

256

3 822

35

101

2 618

29

71

2 512

19

48

-50

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005 2006 2007 2008

Revenues EBITDA

PBT PAT

Launched www.indiainfoline.com

IIFL Wealth launched

Insurance broking approval

‘Best Broker’ award

Commodities broking

Launched PMS

Listing on NSE, BSE

Launched proprietary trading platform

DGCX membership

CLSA team joins

Formed IIFL (Asia) Pte Ltd

(US

D M

n)

Launched online trading

Became corporate agent for iPru

Started distribution of financial products

Launched proprietary platform for online trading

Corporate overview

Our evolution

13

14

India Infoline LtdEquity broking, Investment Banking

India InfolineInvestment Services

LtdNBFC for financing

India Infoline Commodities LtdCommodities broking

IIFL (Asia)Pte Ltd

International operations

India InfolineMedia & Research

Services LtdEquity research, Portal

& Online Media

India Infoline Marketing

Services LtdInsurance distribution

India Infoline Housing Finance LtdMoneyline Credit Ltd India Infoline

Distribution Co LtdIndia Infoline

Insurance Brokers Ltd

India Infoline Insurance Services Ltd

(Corporate agency)

IIFL Wealth Management LtdWealth Management

IIFL Realty LtdReal Estate

The above chart does not cover all group companies

Corporate overview

Corporate structure

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Attract and build a team with impeccable academic and professional credentialsOpen door, transparent and performance oriented cultureIncreasing level of employee ownershipInvested in systems and processes with culture of audit

Board of Directors

Corporate overview

Management team with proven track record

A multi-channel network spread over 365 cities and towns comprising 976 business locationsEffectively covering all Metros, Class A and Class B towns and a few Class C townsWell-developed infrastructure of Zonal and Area offices for efficient administration and controlBranches networked with ‘best-in-class’infrastructure – VSAT, MPLSRegionally balanced and well-diversified geographical presence.

16

45 80152

568

758838

886976

0

200

400

600

800

1000

1200

2004 2005 2006 2007 2008 Q1FY09 Q2FY09 Q3FY09

Corporate overview

Well entrenched across India

India Infoline business locations

Pan-India presence

17

• Performance highlights- Q3 FY09

• Business review

• Corporate overview

• Industry

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline group (consolidated)

Presentation structure

18

Source: NSE

-

100

200

300

400

500

600

700

800

900

Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08

FAO

Cash

Dec-08

0

5000

10000

15000

20000

25000

0

1000

2000

3000

4000

5000

6000

7000

Jan-07 Apr -07 Jul-07 Oct-07 Jan-08 Apr -08 Jul-08 Oct-08

Nifty (LHS)

Sensex

Source: NSDL

Source: NSE, BSE

0

20

40

60

80

100

120

Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08

Industry overview

Industry

Markets performanceAverage daily turnover on NSE (Rs Bn)

Demat accounts

Source: Prime Database

0

100

200

300

400

500

600

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-080

20

40

60

80

100

120

140Amount mobilized (Rs mn) No. of issues (RHS)

19

(Rs Bn)

Source: AMFI

Source: MCX, NCDEX

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q3FY07 Q4FY07 Q1FY08 Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09

MCX

NCDEX

-

1,000

2,000

3,000

4,000

5,000

6,000

Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Sep-08 Dec-08

Industry overview

Industry overview

Commodities total volume (Rs Bn)Initial Public Offerings

Mutual funds AUM

20

Thank youThank you

Published in January2009. © India Infoline Ltd 2008-09.

India Infoline Ltd. All rights reserved. Regd. Off: 75, Nirlon Complex, Off W E Highway, Goregaon (E) Mumbai-400 063. Tel.: +(91 22)6677 5900 Fax: 2685 0451.

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