Smc Global Securities Ltd. (india) · NSE:SMCGLOBAL
Smc Global Securities Ltd. (india) — SMC Global Securities — Investor Presentation (June 2022)
39 slides from Smc Global Securities Ltd. (india)'s investor presentation, Jun 29, 2022
Slide 1: Exchange filing cover letter: Investor Presentation June 2022
¢ SMC GLOBAL SECURITIES LIMITED NYSiMmc Member: NSE + BSE » MSE « NCDEX + IGEX » MCX Clearing & Trading Member : C2sh, F&O, Currency, Debt & Commodity Moneywise. Be wise. SEB! Regn. No. : INZ 000799438 « Research Analyst No. : INH100001249 « Investment Adviser No. : INA100012491 Regd. Office 11/6B,
Slide 2: Investor Presentation June 2022
INVESTOR PRESENTATION JUNE 2022
Slide 3: SMC at a Glance
SMC at a Glance Branches Across India Cities Covered Unique Clients Employees Sub-brokers / Network of Financial 100+ 450+ 2,000,000+ 3,300+ Authorised Persons Distributors Including 1 in Dubai 2,510+ 13,670+ Clearing & Settlement Cumulative AUM/AUA Running SIPs Insurance Policies sold Insurance Cli
Slide 4: SMC Group Overview
SMC Group Overview • SMC Global Securities Ltd. was established in 1994 by founders Mr. Subhash C. Revenue (INR Mn) & EBITDA Margins (%) Aggarwal and Mr. Mahesh C. Gupta. • Over the years, the company has grown into a diversified financial services 11,063 company offering brokerage services, investm
Slide 5: Business Structure
Business Structure SMC Global Securities Ltd. Insurance Broking Broking, Distribution & Trading Financing Equity, Commodity, Currency & Institutional Broking Discount Broking SME – Loan Against SME – Working Capital Property (LAP) Term Loan (WCTL) Life Insurance Clearing Services Financial Products
Slide 6: Board of Directors
Board of Directors Mr. Mahesh C. Gupta Mr. Subhash C. Aggarwal Vice Chairman & Managing Director, SMC Group, Director-SMC Insurance Brokers Chairman & Managing Director, SMC Group Pvt. Ltd. He is the promoter and co-founder of SMC Group and an active contributor to the good He is the promoter and co
Slide 7: Group Company Chairman/ Directors & Key Management Personnel
Group Company Chairman/ Directors & Key Management Personnel Dr. D. K. Aggarwal Mr. Pravin K. Agarwal CMD-SMC Investments and Advisors Ltd. Whole-Time Director- SMC Insurance Brokers Pvt. Ltd. CMD-SMC Capitals Ltd. Chairman & Director-SMC Real Estate Advisors Private Ltd. He actively handles the dev
Slide 8: Key Milestones
Key Milestones Distribution of SMC Global took Financial Products, Received BSE membership Real Estate Advisory Point of Sale Listed on NSE membership of Research Services, NRI Business as SAM Global Securities Fixed Income Broking Persons (POS) – and BSE, NSE and started Membership of Institutional
Slide 9: Geographical Reach
Geographical Reach SMC Branch Offices 100+ Branches in India including Dubai Jammu 450+ Cities covered across India Punjab 2,510+ Sub Brokers/ Authorised Persons Amritsar Mandi Jalandhar Shimla Ludhiana Chandigarh Bhathinda Dehradun Haryana Patiala Panipat Sambalpur Delhi Meerut Faridabad Lucknow Gu
Slide 10: Awards & Accolades
Awards & Accolades 2022 2021 2019 2019 2019 2019 Significant KRISHI Award for Business Broking House Premier Depository Fastest Growing MFI Contribution To The developing Retail Excellence Award Non-Agricultural Participant in Gold North in Best Star Commodities Market Segment (Order of Merit) Commo
Slide 11: Key Strengths
Key Strengths • Over 25 Years of Management experience in industry • Well established and deeply penetrated national brand with strong reputation and good recall • Group has extensive corporate relationships • An ever-growing database of corporate and retail clients • Innovative use of digital techn
Slide 12: Broking, Distribution & Trading
Broking, Distribution & Trading 11
Slide 13: Broking, Distribution & Trading
Broking, Distribution & Trading • Broking business comprises of brokerage in dealing in equities, commodities, currency derivatives and Segment Revenue* (INR Mn) other securities on behalf of customers, clearing services across all major stock exchanges and depository services. 7,719 • Distribution
Slide 14: Broking
Broking Equity, Commodity & Currency Broking: • SMC is serving more than 6,73,410 unique clients under the broking segment. • Equity segment under broking has been successful in generating a combined turnover of approx. INR 328.41 Tn* in FY22 as compared to a turnover of INR 146 Tn in FY21. • Record
Slide 15: Discount Broking – StoxKart
Discount Broking – StoxKart • SMC has successfully launched a Discount broking platform in 2019 under the brand name StoxKart. • It’s a first-of-its-kind in the broking industry where customers are charged only for profitable transactions. • Optimal usage of existing infrastructure is being leverage
Slide 16: Digital Ecosystem for Broking
Digital Ecosystem for Broking Client Engagement Innovative Trading Tools “We are Online” • Developing research reports in • Availability of next generation • Zendesk – the messaging chatbot HTML5 (Mobile Responsive Format). tools for trading such as SMC enables us to identify and segregate • Next ge
Slide 17: Distribution
Distribution • SMC offers distribution services of financial products including IPO’s, Mutual Funds, Company Fixed Mutual Funds AUM (INR Bn) Deposits, Bonds, through its network of branches and channel partners across India. 31 30 28 29 • SMC also provides retail financing through NBFC division in I
Slide 18: Proprietary Trading & Fixed Income
Proprietary Trading & Fixed Income High-Frequency Trading (HFT): • HFT is a method of trading that uses powerful computer programs to transact a large number of orders in fractions of a second. It uses complex algorithms to analyze multiple markets and execute orders based on market conditions. • We
Slide 19: Advisory
Advisory Wealth Management: Wealth AUM/AUA (INR Mn) • Total Clients served under wealth management clock over 10,738 with managed 5,400 5,060 AUM/ AUA of INR 5,400 Mn. 4,400 • We have our direct sales branches/ regional offices at Delhi, Mumbai, Bangalore and 3,470 3,080 Pune. Portfolio Management:
Slide 20: Broking Industry Outlook
Broking Industry Outlook • Equity broking industry revenue to log 11-12% CAGR in next five fiscals driven Rising Penetration of Demat Accounts in India by a growth of 23-25% in turnover volumes as per ICRA. 6.50% • High investor awareness, increased retail interest across market segments, easier and
Slide 21: Insurance Broking
Insurance Broking 20
Slide 22: Insurance Broking
Insurance Broking Segment Revenue* (INR Mn) 2,763 2,452 2,207 1,775 • SMC Insurance Brokers Pvt. Ltd. which is a Direct Insurance Broker registered with IRDAI (Insurance Regulatory and Development Authority of India) provides a complete array of 1,054 services in Life Insurance and General Insurance
Slide 23: Insurance Broking
Insurance Broking General Insurance (GI) Insurance Gross Premium (INR Mn) Non-Life/ General Insurance contributes around 96.54% of the total revenues (FY22) of the Company. 20,840 17,364 • Within this segment, sales primarily happen through MISP (Motor Insurance Service 15,826 Provider), POS (Point
Slide 24: Insurance Broking - Scalable Business Model
Insurance Broking - Scalable Business Model • Deep and wide national coverage Point Of Sales (POS) Distribution • Strong presence in Tier-1 and Tier-2 cities • Leveraging SMC Global’s (Parent) franchisee network 12,000 11,100 8,000 • Best in industry quality processes • 100% verification of all lead
Slide 25: Insurance Industry Outlook
Insurance Industry Outlook • The insurance industry in India is expected to reach USD 280 Bn. Life insurance Insurance Premium as a (% of GDP industry in the country is expected to grow 5.3% annually from 2019 to 2023. • Insurance reach is still low in India. Overall insurance penetration (premiums
Slide 26: Financing (NBFC)
Financing (NBFC) 25
Slide 27: FY22 NBFC Business in numbers
FY22 NBFC Business in numbers 290+ Channel Partners Employees Number of Lenders 8 Branches 218 14 Collection Efficiency Net Worth Loan AUM Cumulative Loans Disbursed 99% INR 3,640 Mn INR 6,904 Mn INR 15 Bn+ NNPA % ROTA % Revenue Total Borrowings/Leverage Ratio 1.99% 3.00% INR 985 Mn INR 3,699 Mn / 1
Slide 28: NBFC – Systemically Important (SI)
NBFC – Systemically Important (SI) Segment Revenue (INR Mn) • In the year 2008, SMC started providing financing services through its wholly owned subsidiary, 988 985 Moneywise Financial Services Pvt. Ltd. (SMC Finance). 878 827 772 • SMC Finance offers a wide bouquet of loan products i.e. SME financ
Slide 29: Borrowing Mix Diversification
Borrowing Mix Diversification • Increasing diversity in borrowing profile with borrowing from banks & Diversified Borrowing Mix financial institutions • Continued plan to raise additional funds through diversified sources and 41% 49% 42% 44% 44% through varied instruments 13% 29% 36% 11% 16% • Cumul
Slide 30: Key Business Trends - NBFC
Key Business Trends - NBFC Lending Portfolio Disbursements (INR Mn) NII (INR Mn) & NIM (%) 4,310 11.80% 10% 19% 800 11.50% 8% 3,260 11.10% 2,850 2,730 2,810 623 607 618 636 25% 30% 3% 530 10.30% 5% 10.30% SME-Loan Against Property (LAP) SME-Working Capital Term Loan (WCTL) Consumer Durable Loans Cap
Slide 31: NBFC Industry Outlook
NBFC Industry Outlook • Non-Banking Finance Companies (NBFCs) have played an important role in the Indian financial MSME Credit Market – India system by complementing and competing with banks, and by bringing in efficiency and diversity into financial intermediation. Market Size: • NBFCs have evolve
Slide 32: Financial Overview
Financial Overview 31
Slide 33: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY19 FY20 FY21 FY22 Operational Income 7,528 7,785 9,013 11,063 Total Expenses 5,944 6,599 7,060 8,218 EBITDA 1,584 1,186 1,953 2,845 EBITDA Margins (%) 21.04% 15.23% 21.67% 25.72% Other Income 67 56 69 145 Depreciation 113 192 180 201 In
Slide 34: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY20 FY21 FY22 Particulars (INR Mn) FY20 FY21 FY22 ASSETS EQUITY AND LIABILITIES Non-Financial Assets Equity Inventories - 132 345 Share Capital 226 226 226 Current tax assets (net) 305 224 365 Other Equity 6,588 7,501 9,035 Deferred tax ass
Slide 35: Historical Standalone Income Statement
Historical Standalone Income Statement Particulars (INR Mn) FY19 FY20 FY21 FY22 Operational Income 4,248 4,219 5,013 6,699 Total Expenses 3,627 3,588 3,760 4,503 EBITDA 621 631 1,253 2,196 EBITDA Margins (%) 14.62% 14.96% 25.00% 32.78% Other Income 185 310 197 142 Depreciation 91 139 118 144 Interes
Slide 36: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Particulars (INR Mn) FY20 FY21 FY22 Particulars (INR Mn) FY20 FY21 FY22 ASSETS EQUITY AND LIABILITIES Non-Financial Assets Equity Inventories - 132 237 Share Capital 226 226 226 Current tax assets (net) 161 163 213 Other Equity 5,877 6,489 7,706 Deferred tax asset
Slide 37: Consolidated Financial Charts
Consolidated Financial Charts Revenue (INR Mn) EBITDA (INR MN) & EBITDA Margin (%) PAT (INR MN) & PAT MARGIN (%) 11,063 3,200 15.78% 18.00% 25.72% 16.00% 9,013 2,800 21.67% 11.65% 21.04% 2,845 1,746 14.00% 7,528 7,785 2,400 19.22% 9.94% 12.00% 6,439 2,000 15.23% 8.03% 10.00% 1,600 1,584 1,050 8.00%
Slide 38: Capital Market Highlights
Capital Market Highlights Share Price Data (Upto 31st March, 2022) 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Sensex SMC Price Data (As on 31st March, 2022) Shareholding Pattern (As on 31st March 2022) Face Val
Slide 39: Disclaimer
Disclaimer SMC Global Securities Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in
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