Smc Global Securities Ltd. (india) · NSE:SMCGLOBAL
Smc Global Securities Ltd. (india) — SMC Global Securities — Investor Presentation (October 2022)
39 slides from Smc Global Securities Ltd. (india)'s investor presentation, Oct 1, 2022
Slide 1: SMC Global Securities exchange filing cover letter
SMC GLOBAL SECURITIES LIMITED Osmec Member: NSE + BSE « MSE * NCDEX « ICEX * MCX Clearing & Trading Member : Cash, F&O, Currency, Debt & Commodity SEBI Regn. No, : INZ 000199438 « Research Analyst No. : INH100001849 - Investment Adviser No. : INA100012491 Moneywise. Be wise. Regd. Office : 11/6B, Sh
Slide 2: Investor Presentation October 2022
INVESTOR PRESENTATION October 2022
Slide 3: SMC at a Glance
SMC at a Glance Branches Across India Cities Covered Employees Sub-brokers / Network of Financial 112 Client Demat A/Cs 447 3,486 Authorised Persons Distributors Including 1 in Dubai 2,440 13,667 830,877 Clearing & Settlement Cumulative AUM/AUA Running SIPs Insurance Policies sold Insurance NBFC AUM
Slide 4: SMC Group Overview
SMC Group Overview • SMC Global Securities Ltd was established in 1994 by founders Mr. Subhash C. Consolidated Revenue (INR Mn) & EBITDA (%) Aggarwal and Mr. Mahesh C. Gupta. • Over the years, the company has grown into a diversified financial services 11,169 company offering brokerage services, inv
Slide 5: Business Structure
Business Structure SMC Global Securities Ltd. Insurance Broking Broking, Distribution & Trading Financing Equity, Commodity, Discount Broking Clearing Services Currency & Institutional SME – Loan Against SME – Working Capital Broking Property (LAP) Term Loan (WCTL) Life Insurance 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 112 Branches in India including Dubai Jammu 447 Cities covered across India Punjab 2,440 Sub Brokers/ Authorised Persons Amritsar Mandi Jalandhar Shimla Ludhiana Chandigarh Bhathinda Dehradun Haryana Patiala Panipat Sambalpur Delhi Meerut Faridabad Lucknow Guwah
Slide 10: Awards & Accolades
Awards & Accolades 2021 2019 2019 2019 2022 2022 KRISHI Award for Business Broking House Significant Premier Depository Best Learning developing Retail Excellence Award Non-Agricultural Contribution To The Participant in Gold Team of the Year Segment (Order of Merit) Commodities of Commodities Marke
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 other securities on behalf of customers, clearing services across all major stock exchanges and Segment Revenue* (INR Mn) depository services. 7,719 • Distribution
Slide 14: Broking
Broking Equity, Commodity & Currency Broking: • SMC is serving more than 6,88,500 clients under the broking segment. • Equity segment under broking has been successful in generating a combined turnover of approx. INR 126.28 Tn* in Q1-FY23 as compared to a turnover of INR 328.41 Tn in FY22. • Recorde
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. 33 30 • SMC also provides retail financing through NBFC division in IPO's ,
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 10,772 with managed 5,400 AUM/ AUA of INR 4,555 Mn. 4,555 4,400 • We have our direct sales branches/ regional offices at Delhi, Mumbai, Bangalore and 3,080 Pune. Portfolio Management: • Unde
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. • High investor awareness, increased retail interest across market segments, 7.62% easier and
Slide 21: Insurance Broking
Insurance Broking 20
Slide 22: Insurance Broking
Insurance Broking Segment Revenue* (INR Mn.) 2,760 2,452 2,207 • 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 services in Life Insurance and General Insurance Category i
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 12,000 12,475 • Leveraging SMC Global’s (Parent) franchisee network 11,100 8,000 • Best in industry quality processes • 100% verification of a
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: Q1-FY23 NBFC Business in numbers
Q1-FY23 NBFC Business in numbers 290+ Channel Partners Employees Number of Lenders 8 Branches 208 13 Collection Efficiency Net Worth Loan AUM Cumulative Loans Disbursed 98% INR 3,724 Mn INR 7,163 Mn INR 17 Bn+ NNPA % ROTA % Revenue Total Borrowings/Leverage Ratio 1.49% 4.87% INR 325 Mn INR 3,854 Mn
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, 985 Moneywise Financial Services Pvt. Ltd. (SMC Finance). 878 827 • SMC finance offers a wide bouquet of loan products i.e. SME-LAP (loan agai
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% 49% 44% through varied instruments 13% 36% 11% 16% 14% • Cumul
Slide 30: Key Business Trends - NBFC
Key Business Trends - NBFC Lending Portfolio Disbursements (INR Mn) NII (INR Mn) & NIM (%) 4,310 14.00% 8% 8% 800 21% 636 3,260 607 618 17% 2,810 11.10% 11.50% 10.30% 4% 400 324 5% 37% 1,333 SME-Loan Against Property (LAP) SME-Working Capital Term Loan (WCTL) Consumer Durable Loans Capial Market Fun
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) FY20 FY21 FY22 Q1-FY23 Operational Income 7,785 9,013 11,169 2,905 Total Expenses 6,599 7,060 8,218 2,196 EBITDA 1,186 1,953 2,951 709 EBITDA Margins (%) 15.23% 21.67% 26.42% 24.41% Other Income 56 69 39 6 Depreciation 192 180 201 47 Inte
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) FY20 FY21 FY22 Q1-FY23 Operational Income 4,219 5,013 6,699 1,681 Total Expenses 3,588 3,760 4,503 1,174 EBITDA 631 1,253 2,196 507 EBITDA Margins (%) 14.96% 25.00% 32.78% 30.16% Other Income 310 197 142 91 Depreciation 139 118 144 36 Inter
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 Performance
Consolidated Financial Performance Revenue (INR Mn) EBITDA (INR MN) & EBITDA Margin (%) PAT (INR MN) & PAT MARGIN (%) 11,169 18.00% 3,200 15.63% 26.42% 24.41% 16.00% 9,013 2,800 12.74% 21.67% 2,951 11.65% 1,746 14.00% 7,785 2,400 12.00% 2,000 15.23% 10.00% 1,600 1,953 1,050 8.00% 1,200 2,905 1,186 3
Slide 38: Capital Market Highlights
Capital Market Highlights 1 Year Share Price Data (as on 30th June, 2022) 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Sensex SMC Price Data (As on 30th June, 2022) Shareholding Pattern (As on 30th June 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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