A Year of Growth and Transformation
Dear Stakeholders,
It is a pleasure to present to you the Integrated Annual Report of IIFL
Securities for FY 2023-24. During the year, we continued to fortify our competitive
position and emerged as a dominant player in most of our business segments. From online
retail trading to tailored solutions for our Private Client Group, from Institutional
Equities to Investment Banking; our comprehensive suite of offerings serves as a one-stop
solution for all capital market needs of our customers. As their trusted investment
partners, we guide them to achieve financial success through different stages of their
life cycle.
Our success is intertwined with the financial success of our customers,
embodying the theme of this year's report, "Investing
in Your Financial Success".
Financial fitness is not a pipe dream or a state of mind. It is a
reality if you are willing to pursue it and embrace it.
Will Robinson, Author
Enhancing Governance and Leadership
To enhance our corporate governance practices, the Board has separated
the roles of Chairman and Managing Director. While, I continue as the Chairman, the Board
has approved the appointment of Mr. Nemkumar H as the Managing Director. With 17 years at
our firm and a distinguished career, including as the Country Head at CLSA, Mr. Nemkumar
has been instrumental in scaling our Institutional Equities business, making it a premier
destination for domestic and foreign investors. His extensive expertise in capital markets
will undoubtedly elevate our Company to new heights.
Unlocking Vast Opportunities
FY 2023-24 was marked by momentum in the Indian economy maintaining our
country's status as the
fastest-growing major economy in the world.
Key growth drivers included a strong manufacturing sector and increased
infrastructure spending. The RBI's wait-and-watch stance on interest rates and close monitoring of inflation
trends will be closely watched. Positive indicators such as increased government capex, a
rising tax-to-GDP ratio, and strong foreign investment inflows present substantial
opportunities.
A wise man will make more opportunities than he finds.
Francis Bacon
Capital Market Performance
Indian capital markets continued their strong run during the year, with
a broad-based rally in benchmark indices (Sensex up 25% and Nifty up 29%) and BSE Midcap
(up 63%) and Smallcap (up 60%). With structural multi-year drivers such as the
financialisation of savings and formalisation of investment management and advisory firmly
in place, the future looks promising.
An evolving and proactive regulatory environment, coupled with a
thriving technology ecosystem, provides ample opportunity for well-governed organisations
to further fortify their stronghold in the sector. The continued low penetration of the
financial services sector in India underscores the sector's vast potential for growth.
Primary markets saw a spate of Initial Public Offers (IPOs) in FY
2023-24, raising more than '620 Billion (up 19% over FY 2022-23). Retail participation
continued to rise with the addition of around 37 Million demat accounts
during the year - the largest ever increase. The total number of demat accounts grew by
11.9% over the preceding year to 151.4 Million. Activity in derivative volumes too
remained buoyant, with the monthly notional value of derivatives traded on Indian
exchanges doubling to '8,737 Trillion in March 2024 over March 2023.
Money grows on the tree of persistence.
A Japanese Proverb
Record performance driven by strategic execution
It was a year of record performance for us, with our net profit
reaching an all-time high of '5,121 Million up 106% over FY 2022-23. This achievement was
powered by healthy growth in all our business segments, marked improvement in the
competitive position and strong operating performance of our institutional broking and
investment banking franchise. Our performance this year demonstrates the durability of our
core strengths: research credentials, technology platforms and our skilled people - the
bedrock of our success. Our institutional broking segment provides comprehensive research
coverage (273 stocks in 20+ sectors, accounting for 75% of India's market capitalisation). Our non-institutional business is
transforming from a traditional execution or transaction-focussed platform into a
comprehensive wealth management player with a focus on the affluent segment.
An organisation's ability to learn, and translate that learning into action rapidly, is the
ultimate competitive advantage.
Jack Welch
The path forward
For us, at IIFL Securities, performance in the environmental, social
and governance (ESG) aspects is crucial. We continuously explore best practices in this
domain. During the year, we added one more LEED-certified office in Mumbai. We aim to
optimise energy and water consumption while enhancing our waste management practices
across all our offices and branches.
Our focus on digitalisation helps us reduce paper consumption across
our operations. Additionally, we are committed to providing our employees with a caring,
growth-oriented work environment and helping them stay up-to-date with evolving industry
dynamics. Our CSR team works relentlessly towards uplifting marginalised and vulnerable
sections of society.
During the year, 4.15 lakh people benefitted from our CSR projects. The
CSR team also undertakes tree plantation drives regularly to contribute to the fight
against climate change. We have voluntarily implemented most of the governance parameters
of NSE Prime norms and IiAS to further enhance our corporate governance practices.
We don't
have to engage in grand, heroic actions to participate in change. Small acts, when
multiplied by millions of people, can transform the world.
Howard Zinn Concluding thoughts
I extend my deepest gratitude to each of you for your continued trust
and support in our capabilities. Your faith in our journey remains our greatest strength.
Together, we have overcome numerous challenges and celebrated triumphs.
I extend my heartfelt gratitude for your enduring trust and collective spirit.
Our commitment to all stakeholders—customers, employees,
investors, regulators, bankers, and partners—guides our actions. As we continue "Investing in Your Financial Success", we look forward to achieving greater
milestones together.
Warm regards,
R. Venkataraman
Chairman