Final Presentation on India Bulls

8/7/2019 Final Presentation on India Bulls

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Indiabulls

A Summer Training

In


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Introduction

A learning experience which will go a long way to build

my career in service sector specially in capital market.

The Learning

Financial Products & their marketing.

Challenges & level of energy required to be an profitable

employee.

What a simple task like selling a share take.


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Inception

Indiabulls Is Indias leading Financial Services and RealEstate Company. With a great reach to the market with Itssecurities, consumer finance, mortgage and real estatedevelopment.

Founded in the May 2000., When 3 IIT ians by the name MrSameer Gehlot, Rajiv Rattan, Saurabh Mittal took over OrbisSecurities. They had a vision to have a online broking systembased on a American concept.

It started with 2 branch's all over the nation and a handfulemployees. Currently It have more than 640 branches all overIndia, and a huge client base of 4,50,000 customers , servedby around 4000 relationship managers and several supportstaffs (comprised of dealers and back office staff).


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4

25

63

241

306

650

148

0

100

200

300

400

500

600

700

Mar-

03

Mar-

04

Mar-

05

Jun-

05

Mar-

06

Jan-

07

124

476

1,8932,100

4,500

970

0

500

1,000

1,500

2,000

2,500

3,000

3,5004,000

4,500

5,000

Mar-

03

Mar-

04

Mar-

05

Jun-

05

Dec-

06

Jan-

07

IBL FootprintIBL Footprint Increasing Number of RMsIncreasing Number of RMs

No of Branches No of RMs

650 Branches across 145 cities650 Branches across 145 cities

Increasing No of BranchesIncreasing No of Branches

> 5 branches

1 branch

2-5 branches

Branch NetworkBranch Network Employee StrengthEmployee Strength

Branch Network and Employee growth


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Diversified Business groups

Securities &Derivatives

Broking

Mortgage &

HousingFinance

Consumer

Financing

Financial

ProductsDistribution

SecuredFinancing


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16,455 30,498

79,932 108,324

144,000178,800

235,000

450,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000450,000

500,000

Mar-03 Mar-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 2007 Jan

Increasing Number of CustomersIncreasing Number of Customers

Growing Customer base


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SENIOR VICE PRESIDENT

REGIONAL MANAGER

BRANCH MANAGER/

SENIOR SALES MANAGER

Support

System

Sales

Functions

Back office

Executive

Local

Compliance

Officer

RM/SRM

Dealer ARM

Regional Hierarchy


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Financial Comparisons

Operating Profit Ratio

0102030405060708090

100

5-Mar 4-Mar 5-Mar 4-Mar 5-Mar 4-Mar

Kotak ICICI Indiabulls

(%)

Net sales

0

50

100

150

200

250

300

350

400

450

5-Mar 4-Mar 5-Mar 4-Mar 5-Mar 4-Mar

Kotak ICICI Indiabulls

Rs in crores

Indiabulls stands third in

revenue generation, with

largest client base

Its CAGR is 184 % (03-06)

while ICICI CAGR is 114 %

(03-06)

Indiabulls operating profit ratio is

below industrial average by

around 20 %

This shows its inefficiency in

managing cost.

NetSales Operating Profit Ratio


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Continued

ReturnOn Capital Employed ReturnOn Equity

Indiabulls stands second in

terms of return to the cost of

capital, but there is hugedifference between first and

second.

ROCE(%)

010

2030

0 0

6070

80

-Mar

-Mar -Mar

-Mar -Mar

-Mar

Kotak ICICI India ulls

(%)

ROE(%)

0

10

20

30

0

0

60

70

-M

-M

-M

-M

-M

-M

Kot k I I I Indi

u s

(%)

The difference in Return on

Equity is not huge between

Indiabulls & Kotak, it meansthat Indiabulls major share

capital is funded by bonds

Also proves that dividend

pay off can be high.


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Web Server

Web

Telephone to

Customer

Care

/Investment

Advisor

Internet

Telebroking

Independent

Financial Advisor

Transaction Engine

Centralised Risk Management System

Virtual Private

Network

connecting all

branches

WAPGateway

Mobile Phone

NSE BSE Depositary CMA M. Funds Insta CashE-mail/SMS

C

U

ST

O

M

E

R


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Trading Products

Basically provide three products for trading. They are Cash account

Intraday account

Margin trading (Mantra)

Cash account provides the client to buy 4 times of cash balance

in his trading account.

Intraday product provides the client to buy 8 times of his cash

balance in the trading account.Mantra account called as margin trading, is a special account

to buy on leverage for a longer duration.


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Funding

Indiabulls provides funding for A category shares

bought.

These funds are to be paid back to Indiabulls on theT+2nd day, other wise the stocks will be sold off up to

the extant of negative cash, on the T+5th

day.This is provided to all clients by default. After the T+2nd

day client will be charged delayed payment charges.

(Stock margin + cash margin)* 4 =D

elivery (Cash Margin + Stock margin)*8 = Intraday

(Cash margin + Stock Margin)= futures

Cash Margin * 2 = Margin trading


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The trading attracts a brokerage of

0.5 % of total transaction value forDelivery (on both buyingleg as well as selling leg)

0.1% of total transaction value for intraday (on both buying legas well as selling leg)

0.1% of total transaction value for F&O (on both buying leg aswell as selling leg).

Service tax of 12.24% on the brokerage is applicable for all theabove

Other taxes and stamp duties are also levied (based on thecharges as per prevailing rates).

Trading charges


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Derivatives are instruments whose value is derived, in whole or in

part, from the value of one or more underlying assets.

In India we have several derivatives, two of the most famous

derivatives traded on National stock exchange areFutures

Option

Derivatives act as a hedging tool

Straddle Buy one Call and one Put at the same strike rate

Stranger Buy one Call and one Put at different strike rates

Derivatives


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Portfolio Management

A collection of investments held by an institution or a privateindividual. Holding a portfolio is often part of an investment and risk-

limiting strategy called diversification. By owning several assets,

certain types of risk (in particularspecific risk) can be reduced

Designed Portfolio

Standard Deviation measure the risk

Reduced standard of combined assets

Can be aligned with Index Fund (example NIFTY)


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Final Presentation on India Bulls

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