Smc Global Securities Ltd. (india) · NSE:SMCGLOBAL
Smc Global Securities Ltd. (india) — SMC Global Securities — Investor Presentation (December 2023)
41 slides from Smc Global Securities Ltd. (india)'s investor presentation, Dec 11, 2023
Slide 1: Cover letter to stock exchanges: Revised Investor Presentation
Date: 11th December, 2023 To, Listing Operations Listing Department BSE Limited, P J Towers, Dalal Street, National Stock Exchange of India Limited Mumbai -400001, India Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E) Mumbai – 400051 Scrip Code: 543263 Symbol: SMCGLOBAL Subject: Revis
Slide 2: SMC Global Securities Ltd. Investor Presentation November 2023
SMC Global Securities Ltd. Investor Presentation November 2023
Slide 3: SMC at a Glance
SMC at a Glance Branches Across India Cities Covered Employees Sub-brokers / Network of Financial 180 Client Demat A/Cs 455 4,134 Authorised Persons Distributors Including 1 in Dubai 10,04,344 2,485 7,077 Insurance Clearing & Settlement Cumulative AUM/AUA Running SIPs Insurance Policies sold NBFC AU
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 12,116 company offering brokerage servic
Slide 5: Business Structure
Business Structure SMC Global Securities Ltd. Insurance Broking Broking, Distribution & Trading Financing Equity, Commodity, Currency Financial Products SME – Working Capital Clearing Services Wealth Management SME – Loan Against & Full-Service Broking, MTF Distribution Term Loan (WCTL) Life Insuran
Slide 6: Board of Directors
Board of Directors Mr. Mahesh C. Gupta Mr. Subhash C. Aggarwal Vice Chairman and Managing Director, SMC Group Chairman & Managing Director, SMC Group He is the promoter and co-founder of SMC Group and has been associated with the He is the promoter and co-founder of SMC Group and an active contribut
Slide 7: Group Company Chairman/ Directors & Key Management Personnel
Group Company Chairman/ Directors & Key Management Personnel Mr. Naveen ND Gupta Mr. Narender Kumar Independent & Non-Executive Director He has been a chartered accountant for around 26 years and is widely known for his role in Independent & Non Executive Director making the income disclosure Scheme
Slide 8: Group Company Chairman/ Directors & Key Management Personnel
Group Company Chairman/ Directors & Key Management Personnel Mr. Ayush Agarwal Ms. Akanksha Gupta Director - SMC Real Estate Advisors Private Ltd. Whole Time Director - SMC Insurance Brokers Pvt. Ltd., Director- SMC Global IFSC Pvt. Ltd., Director - Moneywise Finvest Ltd. CIO - SMC Private wealth Di
Slide 9: Key Milestones
Key Milestones Wealth Management Became Clearing and SMC Global took Trading Member of India Investment Banking Corporate Trading cum clearing Discount membership of Insurance International Bullion Online Trading Hedging Desk member of India INX & NSE- Broking - NSE and started Broking Exchange IFSC
Slide 10: Geographical Reach
Geographical Reach SMC Branch Offices 180 Branches in India including Dubai Srinagar 455 Cities covered across India Jammu 2,485 Sub Brokers/ Authorised Persons Kangra Amritsar Ludhiana Jalandhar Chandigarh Patiala Bhatinda Yamuna Nagar Sirsa Karnal Dehradun Hisar Noida Sri Ganganagar Rohtak Greater
Slide 11: Awards & Accolades
Awards & Accolades 2023 2022 2021 2019 2022 2022 KRISHI Award for Broking House Member Partner – MCX Awards Significant MCX Awards developing Retail Non-Agricultural New Initiatives & Leading Member- Contribution To The Leading Member- Segment Commodities of Market Outreach Bullion Segment Commoditi
Slide 12: Key Strengths
Key Strengths • Top Management of SMC has Over 30 Years of 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 o
Slide 13: Broking, Distribution & Trading
Broking, Distribution & Trading 12
Slide 14: Broking, Distribution & Trading
Broking, Distribution & Trading • Broking business comprises of brokerage, including discount brokerage “Stoxkart,” dealing in equities, commodities, currency derivatives and other securities on behalf of customers, clearing services Segment Revenue* (INR Mn) across all major stock exchanges and dep
Slide 15: Broking
Broking Equity, Commodity & Currency Broking: • SMC is serving more than 10 lakh clients under the broking segment, including more than 2,28,000 clients under Stoxkart. • Equity segment under broking has been successful in generating a combined turnover of approx. INR 176.51 Tn* in Q2-FY24 as compar
Slide 16: 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 17: Digital Ecosystem for Broking
Digital Ecosystem for Broking Client Engagement ACE API Market Mojo Developing research reports in HTML5 It is a powerful REST API, which • SMC has entered into an agreement with (Mobile Responsive Format). Creating uses HTTP resquests to fetch Markets Mojo, which is in the business of campaigns usi
Slide 18: 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 • SMC also provides retail financing through NBFC division in IPO's , FP
Slide 19: 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 20: Advisory
Advisory Wealth Management: Wealth AUM/AUA (INR Mn) • Total Clients served under wealth management are 11,134 with AUM/ AUA of INR 7,969 Mn. • We have our direct sales branches/ regional offices at Delhi, Mumbai, Bangalore and Pune. • Awarded Best Wealth Management company of India by Business Spher
Slide 21: Broking Industry Outlook
Broking Industry Outlook • Equity Broking industry is likely to clock a total revenue of ~INR 28,000-30,000 crore in FY 2023, registering a year-on-year (YoY) growth of 10%, the revenue growth rate is Rising Penetration of Demat Accounts in India 6.50% expected to be flattish in FY24. • High investo
Slide 22: Insurance Broking
Insurance Broking 21
Slide 23: Insurance Broking
Insurance Broking Segment Revenue* (INR Mn.) 3,482 2,760 2,452 • SMC Insurance Brokers Pvt. Ltd. which is a Direct Insurance Broker registered with IRDAI 2,008 (Insurance Regulatory and Development Authority of India) provides a complete array of services in Life Insurance and General Insurance Cate
Slide 24: Insurance Broking
Insurance Broking General Insurance (GI) Insurance Gross Premium (INR Mn) Non-Life/ General Insurance contributes around 94.69% of the total revenues of the Company. 27,166 • Within this segment, sales primarily happen through MISP (Motor Insurance Service 20,840 Provider), POS (Point of Sales perso
Slide 25: 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 14,565 • Leveraging SMC Global’s (Parent) franchisee network 13,672 12,000 11,100 • Best in industry quality processes • 100% verification of
Slide 26: Insurance Industry Outlook
Insurance Industry Outlook • The Insurance industry in India is expected to reach USD 280 Bn by 2025 with a CAGR Insurance Premium as a % of GDP of 12-15%. Life insurance industry in the country is expected to grow 5.3% annually from 2019 to 2023. India’s general insurance market is expected to grow
Slide 27: Financing (NBFC)
Financing (NBFC) 26
Slide 28: H1-FY24 NBFC Business in numbers
H1-FY24 NBFC Business in numbers 93 Channel Partners Employees Number of Lenders 22 Branches 329 23 Collection Efficiency Net Worth Loan AUM Cumulative Loans Disbursed Approx. 99% INR 4,092 Mn INR 10,156 Mn INR 26 Bn+ NNPA % ROTA % Total Income Total Borrowings/Leverage Ratio 1.30% 4.62% INR 894 Mn
Slide 29: NBFC – Middle Layer
NBFC – Middle Layer Segment Revenue (INR Mn) 1,319 • In the year 2008, SMC started providing financing services through its wholly owned subsidiary, 985 Moneywise Financial Services Pvt. Ltd. (SMC Finance). 894 827 • The company is dealing in wide spectrum of financial products like SME- LAP (Loan a
Slide 30: Borrowing Mix Diversification
Borrowing Mix Diversification • Increasing diversity in borrowing profile with borrowing from bank & financial institutions. Diversified Borrowing Mix • Continued plan to raise additional funds through diversified sources and through various instruments. • Cumulative Asset/ Liability mismatch, surpl
Slide 31: H1-FY24 Key Business Trends - NBFC
H1-FY24 Key Business Trends - NBFC Lending Portfolio Disbursements (INR Mn) NII (INR Mn) & NIM (%) 2% 6%1% 8,583 939 1,000 15% 30% 900 800 750 1% 4,310 4,449 700 618 578 600 2,810 500 11.8% 11.8% 12.1% 45% 11.4% 400 300 SME-Loan Against Property (LAP) SME-Working Capital Term Loan (WCTL) 200 Consume
Slide 32: NBFC Industry Outlook
NBFC Industry Outlook • Non-Banking Finance Companies (NBFCs) have played an important role in the Indian financial system by complementing and competing with banks, and by bringing in efficiency and MSME Credit Market – India diversity into financial intermediation. Market Size: USD 819 Mn • NBFCs
Slide 33: Financial Overview
Financial Overview 32
Slide 34: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY21 FY22 FY23 H1-FY24 Operational Income 9,013 11,169 12,116 7,009 Total Expenses 7,060 8,218 9,417 5,283 EBITDA 1,953 2,951 2,699 1,726 EBITDA Margins (%) 21.67% 26.42% 22.28% 24.63% Other Income 69 39 41 30 Depreciation 180 201 227 160
Slide 35: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY22 FY23 H1-FY24 Particulars (INR Mn) FY22 FY23 H1-FY24 ASSETS EQUITY AND LIABILITIES Non-Financial Assets Equity Inventories 345 52 49 Share Capital 226 209 209 Current tax assets (net) 365 290 349 Other Equity 9,035 9,118 9,698 Deferred t
Slide 36: Historical Standalone Income Statement
Historical Standalone Income Statement Particulars (INR Mn) FY21 FY22 FY23 H1-FY24 Operational Income 5,013 6,699 6,792 3,872 Total Expenses 3,760 4,503 4,972 2,770 EBITDA 1,253 2,196 1,820 1,102 EBITDA Margins (%) 25.00% 32.78% 26.80% 28.46% Other Income 197 142 137 243 Depreciation 118 144 170 123
Slide 37: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Particulars (INR Mn) FY22 FY23 H1-FY24 Particulars (INR Mn) FY22 FY23 H1-FY24 ASSETS EQUITY AND LIABILITIES Non-Financial Assets Equity Inventories 237 2 6 Share Capital 226 209 209 Current tax assets (net) 212 106 86 Other Equity 7,706 7,471 8,014 Deferred tax as
Slide 38: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT MARGIN (%) 35.00% 12,116 3,200 2,951 1,746 11,169 2,900 2,699 30.00% 9,013 2,600 1,204 25.00% 2,300 1,953 1,050 7,009 2,000 15.63% 20.00% 1,726 1,700 11.65% 1,400 26.42% 24.63% 9.94%
Slide 39: Capital Market Highlights
Capital Market Highlights 1 Year Stock Performance (as on 30th September, 2023) 25% SMC SENSEX 20% 15% 10% 5% 0% -5% -10% -15% Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Price Data (As on 30th September, 2023) Shareholding Pattern (As on 30th September, 2023)
Slide 40: 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
Slide 41: Thank You
Thank You 40
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