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ILFSVC has reported a weak set of numbers for the quarter and year ended March 2011 on par with our estimates.
For Q411, company has reported consolidated sales of ` 533Mn v/s ` 498Mn (7% Y-Y growth) and a net profit of `
183Mn v/s ` 234Mn for Q410 (22% Y-Y de-growth). The above mentioned numbers include the impact of the
amalgamation of the Saffron entities effective August 2010 i.e, ` 230Mn in topline and ` 30Mn in bottomline. Growth in
AUM is reflected in the enhanced numbers for the year end. However, the same is not translated into growth in profits
due to amortisation of the consideration paid for the amalgamation.
Full Year Performance Highlights:
Ÿ The company has reported a 12% Y-Y topline growth to ` 1,900Mn (` 1,698Mn for FY10)
Ÿ Staff costs have seen a jump of 9% Y-Y, which includes a 15% salary hike for the existing personnel and the
additional work force coming in from Saffron, thereby affecting the operating margins
Ÿ Depreciation/Amortisation includes ` 88Mn paid for the Saffron amalgamation. This amount would continue till the
useful life of the fund
Ÿ Reported PAT for FY11 was at ` 690Mn as against ` 739Mn for FY10 (6.6% Y-Y de-growth)
Ÿ EPS reported for the year ended March 2011 was ` 3.4/- as compared to ` 3.6/- for the year ended March 2010
Ÿ The company has declared a yearly dividend of ` 1.5/- per share, translating to a dividend yield of ~4%
Analyst Conference Call Highlights:
Ÿ Net earning AUM at $ 2.6Bn
Ÿ International Loan taken for the Saffron merger is for a period of 3 years and the company would be making
quarterly repayments effective March 2011.
Ÿ 4 funds in the market, viz., TARA IV (in documentation process), IL&FS Milestone Fund, PIPE Fund (~$ 300Mn)
and Middle Eastern Fund (~$ 400Mn)
Our Call:
A business with assured revenues over the next few years with fantastic economics is available to investors at
attractive valuations. The dividend payout ratio has been very impressive in the past and there is no reason why it
won't continue in the future.
We believe ILFSVC can generate excellent returns for the shareholders in the long term. We maintain our 'BUY'
recommendation on the scrip.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
ILFSVC has reported a weak set of numbers for the quarter and year ended March 2011 on par with our estimates.
For Q411, company has reported consolidated sales of ` 533Mn v/s ` 498Mn (7% Y-Y growth) and a net profit of `
183Mn v/s ` 234Mn for Q410 (22% Y-Y de-growth). The above mentioned numbers include the impact of the
amalgamation of the Saffron entities effective August 2010 i.e, ` 230Mn in topline and ` 30Mn in bottomline. Growth in
AUM is reflected in the enhanced numbers for the year end. However, the same is not translated into growth in profits
due to amortisation of the consideration paid for the amalgamation.
Full Year Performance Highlights:
Ÿ The company has reported a 12% Y-Y topline growth to ` 1,900Mn (` 1,698Mn for FY10)
Ÿ Staff costs have seen a jump of 9% Y-Y, which includes a 15% salary hike for the existing personnel and the
additional work force coming in from Saffron, thereby affecting the operating margins
Ÿ Depreciation/Amortisation includes ` 88Mn paid for the Saffron amalgamation. This amount would continue till the
useful life of the fund
Ÿ Reported PAT for FY11 was at ` 690Mn as against ` 739Mn for FY10 (6.6% Y-Y de-growth)
Ÿ EPS reported for the year ended March 2011 was ` 3.4/- as compared to ` 3.6/- for the year ended March 2010
Ÿ The company has declared a yearly dividend of ` 1.5/- per share, translating to a dividend yield of ~4%
Analyst Conference Call Highlights:
Ÿ Net earning AUM at $ 2.6Bn
Ÿ International Loan taken for the Saffron merger is for a period of 3 years and the company would be making
quarterly repayments effective March 2011.
Ÿ 4 funds in the market, viz., TARA IV (in documentation process), IL&FS Milestone Fund, PIPE Fund (~$ 300Mn)
and Middle Eastern Fund (~$ 400Mn)
Our Call:
A business with assured revenues over the next few years with fantastic economics is available to investors at
attractive valuations. The dividend payout ratio has been very impressive in the past and there is no reason why it
won't continue in the future.
We believe ILFSVC can generate excellent returns for the shareholders in the long term. We maintain our 'BUY'
recommendation on the scrip.
