>FINANCIAL TECHNOLOGIES (IDFC SSKI)

HIGHLIGHTS OF FY09 RESULTS AND OUR INTERACTION WITH THE MANAGEMENT

• Ahead of estimates, Financial Technologies has a reported a strong revenue growth of 143% at Rs3.3bn. Higher contribution from exchange solutions has increased EBITDA margins from 32.6% in FY08 to 49.3% in FY09. This resulted in 106% growth in operational net profit at Rs1.7bn.

• Consolidates revenues grew by 19% at Rs3.2bn and reported net profits stood of Rs2.5bn. This includes Rs3.7bn of other income with Rs1.9bn resulting from capital gains.

• Revenues from ecosystem ventures (includes NBHC, Atom, Tickerplant) grew by 80% at Rs1.2bn and EBIT for the segment came at Rs92m (as against Rs19m of EBIT loss in FY08).

• MCX (associate of FTIL – 31.2% stake owned), India’s largest commodity exchange garnered a 47% increase in turnover in FY09 at US$918bn. Share of profits from associates, which include MCX (31.2% stake) and IEX (41.2%), stood at Rs527m. This implies MCX garnered profits to the tune of ~Rs1.6bn for the year.

• Of the ten exchange ventures floated by FTIL (five domestic and five international), six are currently operational while four of the international ventures are scheduled to start in the next two years. Of these, SMX and GBOT are expected to go live in 2009, while Bourse Africa and BFX are targeted to go live in 2010.

• During the quarter, standalone revenues grew by 176% at Rs1.1bn. EBITDA margins improved significantly from 37% in Q4FY08 to 53% in Q4FY09 resulting in a 216% growth in operational net profits at Rs785m.

• As on 31st March 2009, cash on books stood at Rs11.6bn and Rs4.6bn worth of ZCCB outstanding.

• Aggregate investments in group companies stood at Rs4.3bn and share of losses from the same stood at Rs1.2bn.

To see full report: FINANCIAL TECHNOLOGIES