Smc Global Securities Ltd. (india) · NSE:SMCGLOBAL
Smc Global Securities Ltd. (india) — SMC Global Securities — Investor Presentation (March 2023)
40 slides from Smc Global Securities Ltd. (india)'s investor presentation, Mar 10, 2023
Slide 1: Cover letter to stock exchanges: Investor Presentation March 2023
Gsme a4 SMC GLOBAL SECURITIES LIMITED Member: NSE + BSE * MSE * NCDEX * MCX Clearing & Trading Member : Cash, F&O, Currency, Debt & Commodity SEBI Regn. No, : INZ 000199438 « Research Analyst No. : INH100001849 Moneywise. Be wise. Regd. Office : 11/6B, Shanti Chamber, Pusa Road, New Delhi-110005 Ph
Slide 2: Investor Presentation March 2023
Investor Presentation March 2023
Slide 3: SMC at a Glance
SMC at a Glance Branches Across India Cities Covered Employees Sub-brokers / Network of Financial 118 Client Demat A/Cs 453 3,931 Authorised Persons Distributors Including 1 in Dubai 8,98,648 2,530 13,408 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 company offering brokerage services, inv
Slide 5: Business Structure
Business Structure SMC Global Securities Ltd. Insurance Broking Broking, Distribution & Trading Financing Equity, Commodity, Currency Clearing Services Financial Products Wealth Management SME – Loan Against SME – Working Capital & Full Service Broking Distribution Life Insurance Property (LAP) Term
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 Dr. D. K. Aggarwal CMD-SMC Investments and Advisors Ltd. Mr. Pravin K. Agarwal CMD-SMC Capitals Ltd. Chairman & Director-SMC Real Estate Advisors Private Ltd. Whole-Time Director- SMC Insurance Brokers Pvt. 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 Jammu 118 Branches in India including Dubai Punjab KANGRA 453 Cities covered across India Amritsar Mandi Shimla 2,530 Sub Brokers/ Authorised Persons Jalandhar Saharan pur Ludhiana Chandigarh Bhathinda Yamuna Nagar Karnal Sirsa Haryana Patiala Dehradun Panipat S
Slide 10: Awards & Accolades
Awards & Accolades 2021 2019 2019 2022 2022 2022 KRISHI Award for Business Broking House MCX Awards MCX Awards Significant developing Retail Excellence Award Non-Agricultural Leading Member- Leading Member- Contribution To The Segment (Order of Merit) Commodities of Options Bullion Segment Commoditi
Slide 11: 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 12: Broking, Distribution & Trading
Broking, Distribution & Trading 11
Slide 13: 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 14: Broking
Broking Equity, Commodity & Currency Broking: • SMC is serving more than 8,88,000 clients under the broking segment, including more than 1,68,000 clients under Stoxkart. • Equity segment under broking has been successful in generating a combined turnover of approx. INR 204.22 Tn* in Q3-FY23 as compa
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 • Next generation • Platform for online HTML5 (Mobile Responsive Format). tools for trading such as SMC enable
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 31 • SMC also provides retail financing through NBFC division in IPO'
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 10,891 with managed 5,400 5,676 AUM/ AUA of INR 5,676 Mn. 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 is likely to clock a total revenue of ~INR 27,000-28,000 Rising Penetration of Demat Accounts in India crore in FY 2022, registering a year-on-year (YoY) growth of 28-33%, the 6.50% revenue growth rate is expected to taper to 5-7% in FY 2023 • High
Slide 21: Insurance Broking
Insurance Broking 20
Slide 22: Insurance Broking
Insurance Broking Segment Revenue* (INR Mn.) 2,760 2,452 2,529 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 Cate
Slide 23: Insurance Broking
Insurance Broking General Insurance (GI) Insurance Gross Premium (INR Mn) Non-Life/ General Insurance contributes around 95.91% of the total revenues of the Company. 20,840 • Within this segment, sales primarily happen through MISP (Motor Insurance Service 19,848 17,364 Provider), POS (Point of Sale
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 13,408 12,000 11,100 • Best in industry quality processes 8,000 • 100% verification of a
Slide 25: Insurance Industry Outlook
Insurance Industry Outlook • The Insurance industry in India is expected to reach USD 280 Bn. India’s general insurance market is expected to grow at a compound annual growth rate of 6.2% Insurance Premium as a % of GDP during 2019-2023. Life insurance industry in the country is expected to grow 5.3
Slide 26: Financing (NBFC)
Financing (NBFC) 25
Slide 27: 9M-FY23 NBFC Business in numbers
9M-FY23 NBFC Business in numbers 76 Channel Partners Employees Number of Lenders 7 Branches 254 15 Collection Efficiency Net Worth Loan AUM Cumulative Loans Disbursed Approx 99% INR 3,943 Mn INR 7,868 Mn INR 20 Bn+ NNPA % ROTA % Revenue Total Borrowings/Leverage Ratio 1.34% 5.46% INR 1,012 Mn INR 4,
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, Moneywise Financial Services Pvt. Ltd. (SMC Finance). 1,012 • SMC finance offers a wide bouquet of loan products i.e. SME-LAP (loan against pr
Slide 29: Borrowing Mix Diversification
Borrowing Mix Diversification • Increasing diversity in borrowing profile with borrowing from bank & Diversified Borrowing Mix financial institutions. • Continued plan to raise additional funds through diversified sources and 41% 49% 42% 44% through various instruments. 67% 13% 36% 11% 16% • Cumulat
Slide 30: 9M-FY23 Key Business Trends - NBFC
9M-FY23 Key Business Trends - NBFC Lending Portfolio Disbursements (INR Mn) NII (INR Mn) & NIM (%) 5% 7% 1% 4,822 747 18.6% 23% 4,310 636 17.6% 14% 607 618 16.6% 3,260 600 2,810 15.6% 4% 13.48% 14.6% 1% 13.6% 11.50% 45% 11.10% 12.6% 10.30% 11.6% 10.6% SME-Loan Against Property (LAP) SME-Working Capi
Slide 31: 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. • NBFCs have evolved considerabl
Slide 32: Financial Overview
Financial Overview 31
Slide 33: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY20 FY21 FY22 9M-FY23 Operational Income 7,785 9,013 11,169 9,110 Total Expenses 6,599 7,060 8,218 7,037 EBITDA 1,186 1,953 2,951 2,073 EBITDA Margins (%) 15.23% 21.67% 26.42% 22.76% Other Income 56 69 39 27 Depreciation 192 180 201 163
Slide 34: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY21 FY22 H1-FY23 Particulars (INR Mn) FY21 FY22 H1-FY23 ASSETS EQUITY AND LIABILITIES Non-Financial Assets Equity Inventories 132 345 55 Share Capital 226 226 209 Current tax assets (net) 224 365 381 Other Equity 7,501 9,035 8,699 Deferred
Slide 35: Historical Standalone Income Statement
Historical Standalone Income Statement Particulars (INR Mn) FY20 FY21 FY22 9M-FY23 Operational Income 4,219 5,013 6,699 5,175 Total Expenses 3,587 3,760 4,503 3,746 EBITDA 632 1,253 2,196 1,429 EBITDA Margins (%) 14.98% 25.00% 32.78% 27.61% Other Income 310 197 142 115 Depreciation 139 118 144 122 I
Slide 36: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Particulars (INR Mn) FY21 FY22 H1-FY23 Particulars (INR Mn) FY21 FY22 H1-FY23 ASSETS EQUITY AND LIABILITIES Non-Financial Assets Equity Inventories 132 237 - Share Capital 226 226 209 Current tax assets (net) 163 212 181 Other Equity 6,489 7,706 7,254 Deferred tax
Slide 37: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT MARGIN (%) 11,169 35.00% 3,200 2,951 1,746 9,013 9,110 2,800 30.00% 7,785 2,400 2,073 25.00% 1,953 2,000 1,050 985 20.00% 1,600 1,186 15.00% 1,200 26.42% 15.63% 10.00% 800 22.76% 239
Slide 38: Capital Market Highlights
Capital Market Highlights 1 Year Stock Performance (as on 31st December, 2022) 25% SMC BSE Sensex 20% 15% 10% 5% 0% -5% -10% -15% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Price Data (As on 31st December, 2022) Shareholding Pattern (As on 31st December, 2022
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
Slide 40: Thank You
Thank You 39
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