Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Q3 FY2025 Earnings Presentation
48 slides from Edelweiss Financial Services's earnings presentation, December 2024
Slide 1: Earnings update – Quarter ended Dec 24
Edelweiss Financial Services Limited Earnings update – Quarter ended Dec 24
Slide 2: Contents
CONTENTS Overview for quarter ended Dec 24 03 Performance highlights 06 Important updates 19 Business performance 23 Governance & corporate responsibility 41
Slide 3: Overview
Overview Quarter ended Dec 24 3
Slide 4: Edelweiss at a glance
Edelweiss at a glance INR 6,477 Cr INR 185 Cr Net Worth Ex-Insurance PAT INR 11,590 Cr INR 54 (FV ₹1) Net Debt BVPS 4
Slide 5: Diversified with seven high-quality businesses
Diversified with seven high-quality businesses Edelweiss Financial Services Ltd (EFSL) Asset Nido Home Zuno General Life EAAA Mutual Fund NBFC Reconstruction Finance Insurance Insurance EAAA India Edelweiss Life Alternatives ECL Finance Insurance Company Ltd (EAAA) Edelweiss Asset Edelweiss Asset Lt
Slide 6: Performance Highlights
Performance Highlights Quarter ended Dec 24 6
Slide 7: Performance highlights
Performance highlights 1 Healthy profitability with steady growth in key business metrices Consol PAT at INR 124 Cr; Ex-Insurance PAT at INR 185 Cr EAAA AUM up 11% YoY to INR 57,775 Cr; ARR AUM at INR 42,140 Cr MF Equity AUM up 56% YoY to INR 62,200 Cr; AUM up 14% YoY to INR 1,40,300 Cr Zuno GI loss
Slide 8: Healthy growth in profitability
Healthy growth in profitability INR Cr EFSL Consol EAAA Mutual Fund Asset Reconstruction 293 276 184 53 256 252 136 32 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 17% YoY 35% YoY 65% YoY 8% YoY 8
Slide 9: Earnings distribution across businesses
Earnings distribution across businesses INR Cr Quarter Ended Nine Month Ended Business Dec 24 Dec 23 Dec 24 Dec 23 EAAA 60 45 184 136 Mutual Fund 12 9 53 32 Asset Reconstruction 100 95 276 256 NBFC 6 35 43 104 Nido Home Finance 6 3 9 9 Zuno General Insurance (24) (23) (45) (93) Life Insurance (48) (
Slide 10: Steady growth in key business metrics (1/3)
Steady growth in key business metrices (1/3) EAAA Realisation grew by 51% YoY and AUM at INR 57,775 Cr, increased 11% YoY Deployment grew by 37% YoY in nine months Mutual Fund Equity AUM at INR 62,200 Cr, up 56% YoY; SIP book at INR 360 Cr, up 80% YoY AUM at INR 1,40,300 Cr, up 14% YoY Asset Reconst
Slide 11: Steady growth in key business metrics (2/3)
Steady growth in key business metrices (2/3) NBFC Disbursed INR 52 Cr of retail loans Wholesale book reduced by 12% YoY to in the quarter; INR 318 Cr in nine months, INR 3,650 Cr 78% via CLM Nido Home Finance Disbursed INR 412 Cr in the quarter, up 37% YoY; Partnership with State Bank of India INR 1
Slide 12: Steady growth in key business metrics (3/3)
Steady growth in key business metrices (3/3) Zuno General Insurance Gross Written Premium grew by 27% YoY to Losses declined by 52% YoY INR 754 Cr in nine months, one of the in nine months fastest growing in the industry Life Insurance Gross Premium of INR 1,203 Cr in nine months; AUM at INR 8,948 C
Slide 13: Customer reach increased by 45% YoY
Customer reach increased by 45% YoY In Lakhs Customer Reach Mutual Fund Folios Zuno GI Customers 97 66 23 67 47 14 Dec 23 Dec 24 Dec 23 Dec 24 Dec 23 Dec 24 45% YoY 67% YoY 39% YoY 13
Slide 14: With a steady growth in customer assets
With a steady growth in customer assets INR Cr Customer Assets EAAA AUM Mutual Fund AUM 2,25,925 1,40,300 57,775 2,12,600 52,100 1,23,000 Dec 23 Dec 24 Dec 23 Dec 24 Dec 23 Dec 24 6% YoY 11% YoY 14% YoY 14
Slide 15: Robust balance sheet with well capitalised businesses
Robust balance sheet with well capitalised businesses Business Metric Value NBFC Capital Adequacy 51.1% Nido Home Finance Capital Adequacy 37.9% Asset Reconstruction Capital Adequacy 81.5% Zuno General Insurance Solvency Ratio 162% Life Insurance Solvency Ratio 170% 15
Slide 16: Net debt reduced by INR 3,810 Cr YoY
Net debt reduced by INR 3,810 Cr YoY Net Debt (INR Cr) INR Cr 25% Business Dec 24 Dec 23 15,400 NBFC 3,089 4,430 Nido Home Finance 1,293 1,283 11,590 EAAA 414 430 Asset Reconstruction 299 1,607 Corporate 6,496 7,650 Net Debt 11,590 15,400 Dec 23 Dec 24 16
Slide 17: Cash flow plan
Cash flow plan INR Cr Jan ‘25 to Dec ‘25 Opening Available Liquidity (A) 4,600 Inflows Expected Inflows 7,100 Fresh Borrowings 1,600 Total Inflows (B) 8,700 Outflows Repayments 6,000 Disbursements 3,900 Total Outflows (C) 9,900 Closing Available Liquidity (A+B-C) 3,400 17
Slide 18: Assets in each tenor range adequately cover liabilities
Assets in each tenor range adequately cover liabilities INR Cr Assets Liabilities Excess / (Gap) Up to 1 year 11,300 9,600 1,700 1-3 years 10,600 10,500 100 3 years+ 9,300 4,600 4,700 18
Slide 19: Important Updates
Important Updates 1. Regulatory Update 2. EAAA IPO Update 3. Update on Key Priorities 19
Slide 20: RBI lifted restrictions on EARC and ECLF
1 RBI lifted restrictions on EARC and ECLF ▪ RBI lifted restrictions on EARC and ECLF with immediate effect on December 17, 2024 Regulatory Update ▪ Both companies addressed the supervisory concerns raised by the RBI and implemented all remedial measures EARC Recoveries remained strong; recovered IN
Slide 21: EAAA IPO update
2 EAAA IPO update Filing of DRHP Review by SEBI Filing of RHP Listing EAAA filed DRHP for IPO Approval of the DRHP ▪ Road shows ▪ Launch of the IPO on December 5, 2024 ▪ File RHP with the stock ▪ Listing of EAAA on stock exchanges exchanges Completed Awaited Pending Step 2 Pending Steps 2&3 EAAA IPO
Slide 22: Update on key priorities
3 Update on key priorities A Scale up of profitability in EAAA and Mutual Fund ▪ EAAA PAT up by 35% YoY in nine months ▪ Mutual Fund PAT grew by 65% YoY in the same period B Insurance businesses to breakeven by FY27 ▪ Zuno GI losses declined by 52% YoY in nine months ▪ Operational efficiency in Life
Slide 23: Business Performance
Business Performance Quarter ended Dec 24 23
Slide 24: EAAA: Business performance snapshot
EAAA EAAA: Business performance snapshot Key Metrics for the quarter Business Update ARR AUM (INR Cr) 42,140 AUM grew by 11% YoY to INR 57,775 Cr Deployment grew by 37% YoY in nine months AUM (INR Cr) 57,775 Realisation grew by 51% YoY in nine months Real Assets strategy signed deal worth Deployment
Slide 25: EAAA: Financial performance snapshot
EAAA EAAA: Financial performance snapshot INR Cr Quarter ended Quarter ended Dec 24 Dec 23 AUM 57,775 52,100 ARR AUM 42,140 39,760 Equity 918 695 Gross Revenue 164 125 Opex 96 70 Profit After Tax 60 45 25
Slide 26: EAAA assets overview
EAAA EAAA assets overview AUM – Strategy wise AUM – Geography wise ARR AUM – Strategy wise 1% 6% 2% 25% 30% 21% 44% INR 57,775 Cr INR 57,775 Cr INR 42,140 Cr 54% 69% 48% North America India Private Credit Real Assets Others Private Credit Real Assets Others Europe Rest of the world 26
Slide 27: Mutual Fund: Business performance snapshot
Mutual Fund Mutual Fund: Business performance snapshot Key Metrics for the quarter Business Update Equity AUM (INR Cr) 62,200 Equity AUM at INR 62,200 Cr, up 56% YoY Net equity inflows of INR 3,800 Cr in the quarter, up 2x YoY; reached the INR 10,000 Cr mark in nine months AUM (INR Cr) 1,40,300 AUM
Slide 28: Mutual Fund: Financial performance snapshot
Mutual Fund Mutual Fund: Financial performance snapshot INR Cr Quarter ended Quarter ended Dec 24 Dec 23 AUM 1,40,300 1,23,000 Equity AUM 62,200 40,000 Equity 205 234 Revenue 56 54 Opex 40 45 Profit After Tax 12 9 28
Slide 29: Robust growth in AUM and customer base
Mutual Fund Robust growth in AUM and customer base MF Equity AUM (INR Cr) MF Debt AUM (INR Cr) 62,200 81,500 78,000 70,900 40,000 27,200 Dec 22 Dec 23 Dec 24 Dec 22 Dec 23 Dec 24 SIP Book (INR Cr) Active Folios (# in Lakhs) 360 23 14 200 11 149 Dec 22 Dec 23 Dec 24 Dec 22 Dec 23 Dec 24 Growing SIP b
Slide 30: Asset Reconstruction: Business performance snapshot
ARC Asset Reconstruction: Business performance snapshot Key Metrics for the quarter Business Update Equity (INR Cr) 3,426 Recovered INR 1,446 Cr in the quarter, of which 13% was from retail portfolio AUM (INR Cr) 27,850 Share of retail assets in capital employed stood at 15% Capital Employed (INR Cr
Slide 31: Asset Reconstruction: Financial performance snapshot
ARC Asset Reconstruction: Financial performance snapshot INR Cr Quarter ended Quarter ended Dec 24 Dec 23 AUM 27,850 37,500 Capital Employed 3,612 4,663 Wholesale assets 3,063 3,956 Retail assets 549 707 Equity 3,426 3,050 Revenue 197 279 Opex 27 29 Profit After Tax 100 95 Edelweiss’ share in PAT 60
Slide 32: NBFC: Business performance snapshot
NBFC NBFC: Business performance snapshot Key Metrics for the quarter Business Update Equity (INR Cr) 3,286 Partnership with Central Bank of India, IDFC First Bank and Godrej Capital continues to deepen AUM (INR Cr) 5,370 Disbursed INR 52 Cr of retail loans in the quarter; 71% under co-lending model
Slide 33: NBFC: Financial performance snapshot
NBFC NBFC: Financial performance snapshot INR Cr Quarter ended Quarter ended Dec 24 Dec 23 AUM 5,370 6,950 Gross Loan Book 1,334 2,307 Gross Revenue 168 287 Net Revenue 34 71 Opex 31 79 Credit Cost (5) (53) Profit After Tax 6 35 GNPA 2.32% 2.69% NNPA 1.46% 1.68% 33
Slide 34: Wholesale reduction on track
NBFC Wholesale reduction on track INR Cr ECLF wholesale loan assets 60% 8,950 3,650 750 Dec 22 Dec 24 Dec 26E Reduction will continue in the normal course of business 34
Slide 35: Nido Home Finance: Business performance snapshot
Nido Nido Home Finance: Business performance snapshot Key Metrics for the quarter Business Update Equity (INR Cr) 819 Disbursed INR 412 Cr in the quarter, up 37% YoY; 33% via CLM AUM (INR Cr) 3,972 Partnership with State Bank of India continues to deepen with ongoing disbursals Capital Adequacy 37.9
Slide 36: Nido Home Finance: Financial performance snapshot
Nido Nido Home Finance: Financial performance snapshot INR Cr Quarter ended Quarter ended Dec 24 Dec 23 AUM 3,972 3,801 Gross Loan Book 3,065 2,946 Gross Revenue 132 114 Net Revenue 50 40 Opex 44 34 Credit Cost 3 2 Profit After Tax 6 3 GNPA 2.19% 1.96% NNPA 1.79% 1.62% 36
Slide 37: Zuno General Insurance: Business performance snapshot
Zuno Zuno General Insurance: Business performance snapshot Key Metrics for the quarter Business Update Equity (INR Cr) 317 One of the fastest growing players with gross direct premium income (GDPI) growth of 27% YoY in nine months Motor segment GDPI grew 47% YoY in the GWP (INR Cr) 275 quarter again
Slide 38: Zuno General Insurance: Financial performance snapshot
Zuno Zuno General Insurance: Financial performance snapshot INR Cr Quarter ended Quarter ended Dec 24 Dec 23 Gross Written Premium 275 254 Net Premium Income 147 99 Investment Income & 43 57 Other Income Total Income 191 156 Policy benefits & 113 80 insurance policy liability Other expenses 101 99 P
Slide 39: Life Insurance: Business performance snapshot
Life Insurance Life Insurance: Business performance snapshot Key Metrics for the quarter Business Update Equity (INR Cr) 797 Gross premium of INR 447 Cr in the quarter Individual APE (INR Cr) 115 Embedded Value of INR 2,062 Cr, up 14% YoY AUM at INR 8,948 Cr, up 19% YoY Policies Issued 10,144 Tradit
Slide 40: Life Insurance: Financial performance snapshot
Life Insurance Life Insurance: Financial performance snapshot INR Cr Quarter ended Quarter ended Dec 24 Dec 23 Gross Premium 447 422 Net Premium Income 437 412 Investment Income & (9) 297 Other Income Total Income 428 708 Policy benefits & 276 559 insurance policy liability Other expenses 200 200 Pr
Slide 41: Governance & Corporate Responsibility
Governance & Corporate Responsibility 41
Slide 42: 7 Member Board with 4 Independent Directors
7 Member Board with 4 Independent Directors Mr. Ashok Kini Independent Director Former Managing Director (National Banking Group) State Bank of India Served as an advisor to the Thorat Committee on Financial Inclusion at RBI 35 years of banking experience Dr. Ashima Goyal Independent Director Profes
Slide 43: Significant institutional ownership
Significant institutional ownership Shareholding Pattern as on Dec 31, 2024 Key Shareholders Percent 1 TIAA CREF Funds 7.2% Employee Trust 2.6% 2 CLSA Global Markets 6.4% 3 LIC 2.6% DIIs, Non Institutions 4 Vanguard Group 2.6% & Others 34.3% 32.7% Promoter Group Flowering Tree Investment 5 1.7% Mana
Slide 44: Our contribution to building a more sustainable tomorrow
Our contribution to building a more sustainable tomorrow Under the leadership of EdelGive Foundation, we have… Assisted over 60% of Ensured long term INR 1,405 Cr association with average Partnered with over 280 EdelGive’s NGO partners to mobilized through tenure of 5-years high caliber NGOs grow at
Slide 45: Our investment in communities
Our investment in communities EdelGive Foundation’s commitment to investing in communities 74 Districts across 13 States Sustainable Women Quality Education Livelihoods Empowerment INR 87 Cr Committed 2.2 Cr children impacted 2.54 lakh Individuals trained 2.59 lakh women supported (~INR 19 Cr cashfl
Slide 46: Trusted partner: EdelGive funding partners & networks
Trusted partner: EdelGive funding partners & networks Foundations, Corporates and HNIs partner with Edelgive Platform for their philanthropic allocation 46
Slide 47: Safe Harbour
Safe Harbour DISCLAIMER : This presentation and the discussion may contain certain words or phrases that are forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Financial Services Ltd. or any of its subsidiaries and associate companies (“Ed
Slide 48: Safe Harbour
Safe Harbour Slide 4: Net worth includes MI, Ex-Insurance PAT is post MI Slide 4,7,8,9: Ex-Insurance PAT is post-MI; Business PATs are pre-MI Slide 4,7,16,22: Debt includes accrued interest and excludes CBLO and securitisation liabilities Slide 4,7,16,22: Net debt is gross debt minus high quality li
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