Religare Enterprises Limited · NSE:RELIGARE
Religare Enterprises — Q3 FY13 Earnings Presentation
31 slides from Religare Enterprises's earnings presentation, Jan 29, 2013
Slide 1: Religare Enterprises Limited Q3 FY13 Results
Religare Enterprises Limited Q3 FY13 Results January 29, 2013
Slide 2: Table of Contents
Table of Contents Q3 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 1
Slide 3: Capital markets buoyed by FII inflows but real economy lagging (1/2)
Capital markets buoyed by FII inflows but real economy lagging (1/2) GDP growth at multi year low in Q2FY13; full year estimate revised downwards to 5.5% Repo rate cut by 25 bps in Jan’13 ; CRR also cut by 25 bps Real GDP Growth RBI Forecast Jan ’13 Repo Rate (%) 9.2% 7.75 8.2% 8.0% 7.6% 6.7% 6.1% 5
Slide 4: Capital markets buoyed by FII inflows but real economy lagging (2/2)
Capital markets buoyed by FII inflows but real economy lagging (2/2) Mutual Fund Industry AUM grew strongly; preference for FII inflows strong in H2CY12 debt and liquid funds continues (₹ Tn.) Closing AUM (₹ bn.) 440 460 403 7.6 7.2 6.9 5.9 5.9 -24 -20 Dec ’11 Mar ’12 Jun ’12 Sep ’12 Dec ’12 Q3FY12
Slide 5: Business Update – 1/3
Business Update – 1/3 Capitalizing on the improvement in market sentiment Retail Broking Operational improvements yielding results: business returns to profitability Both equity and commodity market share held steady at 2.4% and 1.7% respectively Asset Management Good traction in AUM growt
Slide 6: Business Update – 2/3
Business Update – 2/3 Reducing risk and conserving balance sheet Lending Loan book stood at ₹108.2 bn., reflecting cautiousness in the current uncertain environment Reported NPAs impacted by lower book size and reflect seasoning of portfolio Core NIM at 3.91% and Opex ratio at 1.80% for Q3FY
Slide 7: Business Update – 3/3
Business Update – 3/3 Defending market position with incessant client focus EM Capital Markets IBD and ECM RCML Singapore maintains its 2nd rank by number of deals and 11th rank by deal volume out of 23 banks for Singapore equity offerings (Source: Bloomberg) Acted as Joint Coordinator, Book R
Slide 8: Key financial indicators – Q3 FY13
Key financial indicators – Q3 FY13 Revenue up 11% YOY Lending dominates revenue mix (₹ mn) REL Consolidated Revenue RSL+RCL 14% 12% RFL 63% 64% 8,836 8,599 9,124 8,662 7,824 0% RGAM ARLI 12% 12% RCML 5% 0% 6% Others 6% 6% Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q3FY12 Q3FY13 Profit Before Tax Profit
Slide 9: Consolidated Income Statement – Q3 FY13
Consolidated Income Statement – Q3 FY13 Q-o-Q Change Y-o-Y Change (₹ mn) Q3 FY13 Q2 FY13 (%) Q3 FY12 (%) Total Income 8,662 9,124 -5% 7,824 11% Personnel Expenses 1,392 1,446 -4% 1,490 -7% Operating and Admin Expenses 2,389 2,347 2% 2,125 12% Less: Net Exp. of JV Recoverable (145) (170) nm (217) nm
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ mn) As at December 31, 2012 As at September 30, 2012 Owners’ Funds 37,928 37,586 Share Capital 2,055 2,055 Reserves and Surplus 35,873 35,531 Minority Interest 1,917 1,863 Non - Current Liabilities 87,619 80,937 Current Liabilities 81,349 85,398 Total Liabilities 208,81
Slide 11: Table of Contents
Table of Contents Q3 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 10
Slide 12: Lending – Religare Finvest
Lending – Religare Finvest Treading cautiously in an uncertain environment Loan book reflects risk averse approach in the current Core NIM and Opex ratio# in target band Lending environment (₹ bn) SME Working Capital* SME Loan Against Property* Capital Market Lending NIM*** SME CE/CV Finance* 117.0
Slide 13: Lending – Religare Finvest Financial Performance
Lending – Religare Finvest Financial Performance Lending RFL Abridged Income Statement QOQ Change YOY Change Retail Broking (₹ mn) Q3FY13 Q2FY13 (%) Q3FY12 (%) Total Income 5,513 5,901 -7% 4,980 11% Operating and Administrative Expenses 803 672 19% 572 41% Management India Asset Personnel Expenses 2
Slide 14: Retail Broking
Retail Broking Operational improvements yielding results: business returns to profitability Lending Market wide equities turnover trajectory maintained Brokerage yield moves in a narrow band (ADTO* - ₹ bn) Commodities - Futures Equities - Options (bps) Brokerage Yield - Equities Brokerage Yield - Co
Slide 15: Retail Broking Financial Performance
Retail Broking Financial Performance Lending RSL & RCL Combined Abridged Income Statement QOQ Change YOY Change Retail Broking (₹ mn) Q3FY13 Q2FY13 (%) Q3FY12 (%) Total Income 1,064 1,056 1% 1,120 -5% Operating and Administrative Expenses 528 562 -6% 612 -14% Management India Asset Personnel Expense
Slide 16: Asset Management – Religare AMC
Asset Management – Religare AMC Religare MF AUM growth ahead of industry Lending Industry-wide average AUM grew 5% QOQ Religare MF AUM grew 11% QOQ; better than industry (₹ bn) Avg. Industry AUM (₹ bn) Religare - Average AUM Retail Broking 7,860 141 7,473 118 127 105 110 6,817 6,928 6,648 Management
Slide 17: Religare AMC Financial Performance
Asset Management – Religare AMC Financial Performance Lending RAMC Abridged Income Statement QOQ Change YOY Change Retail Broking (₹ mn) Q3FY13 Q2FY13 (%) Q3FY12 (%) Total Income 202 153 32% 138 47% Operating and Administrative Expenses 118 68 74% 59 100% Management India Asset Personnel Expenses 85
Slide 18: Health Insurance
Health Insurance Scaling up rapidly with a ‘low-opex model’ Lending RHICL Abridged Income Statement Business Update Gross Written Premium (GWP) of ₹ 93.4 mn in Q3FY13 Retail Broking (₹ mn) Q3FY13 Cumulative GWP of ₹197.8 mn. since Total Income 73 commencement of operations in July 2012 Providi
Slide 19: Religare Global Asset Management Inc. Financial Performance
Religare Global Asset Management Inc. Financial Performance Lending RGAM Inc. Abridged Consolidated Income Statement Retail Broking QOQ Change YOY Change (₹ mn) Q3FY13 Q2FY13 (%) Q3FY12 (%) Total Income 1,042 1,076 -3% 913 14% Management India Asset Operating and Administrative Expenses 188 159 19%
Slide 20: Religare Capital Markets
Religare Capital Markets Creating a sustainable platform Lending Client empanelment Business update No. of Institutional Empanelments* Continued focus on sustainability of the platform and accelerating the path to profitability Retail Broking Traction in ECM in Asia supplemented by peak brokerage
Slide 21: Table of Contents
Table of Contents Q3 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 20
Slide 22: Religare Macquarie Wealth Management
Religare Macquarie Wealth Management Utilizing the breadth of the platform to drive future growth Client Base Steady growth in AUM No. of Clients (₹ bn) Total AUM 4,972 4,894 28.4 28.8 4,662 4,687 27.5 4,492 26.1 24.2 31-Dec-11 31-Mar-12 30-Jun-12 30-Sep-12 31-Dec-12 31-Dec-11 31-Mar-12 30-Jun-12 30
Slide 23: Religare Macquarie Wealth Management Financial Performance
Religare Macquarie Wealth Management Financial Performance RMWM Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q3FY13 Q2FY13 (%) Q3FY12 (%) Total Income 77 66 17% 62 24% Operating and Administrative Expenses 25 32 -22% 28 -10% Personnel Expenses 65 58 10% 72 -10% Total Expenses 90 90 -1% 10
Slide 24: AEGON Religare Life Insurance
AEGON Religare Life Insurance Protecting over a quarter of a million lives Steadily growing customer base Premium Income split (000s) No. of Customers (₹ mn) Single Renewal First year premium 1,821 88 998 1,051 1,020 227 240 251 7 886 190 213 15 790 12 562 13 706 451 642 682 Q3 FY12 Q4 FY12 Q1 FY13
Slide 25: AEGON Religare Life Insurance Financial Performance
AEGON Religare Life Insurance Financial Performance ARLI Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q3FY13 Q2FY13 (%) Q3FY12 (%) Total Income 1,164 1,507 -23% 870 34% Operating and Administrative Expenses 1,188 1,561 -24% 918 29% Personnel Expenses 288 308 -6% 421 -32% Total Expenses 1,
Slide 26: Table of Contents
Table of Contents Q3 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 25
Slide 27: Subsidiary and JV Balance Sheets (1/4)
Subsidiary and JV Balance Sheets (1/4) RFL Abridged Balance Sheet RSL & RCL Combined Abridged Balance Sheet (₹ mn) As at December 31, 2012 (₹ mn) As at December 31, 2012 Owners’ Funds 22,041 Owners’ Funds 4,041 Share Capital 2,294 Share Capital 395 Reserves and Surplus 19,748 Reserves and Surplus 3,
Slide 28: Subsidiary and JV Balance Sheets (2/4)
Subsidiary and JV Balance Sheets (2/4) RAMC Abridged Balance Sheet RHICL Abridged Balance Sheet (₹ mn) As at December 31, 2012 (₹ mn) As at December 31, 2012 Owners’ Funds 247 Owners’ Funds 1,487 Share Capital 603 Share Capital 1,750 Reserves and Surplus (356) Reserves and Surplus (263) Non - Curren
Slide 29: Subsidiary and JV Balance Sheets (3/4)
Subsidiary and JV Balance Sheets (3/4) RGAM Abridged Balance Sheet RMWM Abridged Balance Sheet* (₹ mn) As at December 31, 2012 (₹ mn) As at December 31, 2012 Owners’ Funds 7,412 Owners’ Funds 127 Share Capital 0 Share Capital 1,190 Reserves and Surplus 7,412 Reserves and Surplus (1,063) Minority Int
Slide 30: Subsidiary and JV Balance Sheets (4/4)
Subsidiary and JV Balance Sheets (4/4) ARLI Abridged Balance Sheet* (₹ mn) As at December 31, 2012 Owners’ Funds 1,367 Share Capital 11,894 Reserves and Surplus (10,527) Non - Current Liabilities 9,565 Current Liabilities 673 Total Liabilities 11,605 Non - Current Assets Fixed Assets 91 Long - Term
Slide 31: Thank You
Thank You 30 SE RELIGA