Religare Enterprises Limited · NSE:RELIGARE
Religare Enterprises — Q2 FY13 Earnings Presentation
32 slides from Religare Enterprises's earnings presentation, Oct 30, 2012
Slide 1: Religare Enterprises Limited Q2 FY13 Results
Religare Enterprises Limited Q2 FY13 Results October 30, 2012
Slide 2: Table of Contents
Table of Contents Q2 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 1
Slide 3: Environment remains cautious (1/2)
Despite some recent enthusiasm, the undercurrent in the environment remains cautious (1/2) GDP growth remains close to decade low Repo rate unchanged since April 2012 8.50 Real GDP Growth RBI Forecast July ’12 Repo Rate (%) 8.00 9.2% 8.5% 8.2% 8.0% 7.6% 6.7% 6.1% 6.5% 5.3% 5.5% 5.00 17-04-2012 19-03
Slide 4: Environment remains cautious (2/2)
Despite some recent enthusiasm, the undercurrent in the environment remains cautious (2/2) Minor increase in Mutual Fund Industry AUM as money FII flows remain volatile flowed into Liquid Funds and Debt Funds (₹ Tn) Closing AUM (₹ Bn) 440 403 7.2 6.9 6.4 5.9 5.9 -30 -24 -20 Sep ’11 Dec ’11 Mar ’12 J
Slide 5: Religare platform strengthened significantly
Religare platform strengthened significantly Raising equity capital and forging an important strategic partnership International Finance Corporation (IFC), a member of the World Bank Group, is investing USD 75 m (~₹4 bn.) in REL REL will issue Compulsorily Convertible Debentures to IFC IFC investi
Slide 6: Key financial indicators – Q2 FY13
Key financial indicators – Q2 FY13 Revenue up 6% QOQ and 15% YOY Lending accounts for nearly two-thirds of consolidated revenue (₹ mn) REL Consolidated Revenue (Rs mn) +15% RSL+RCL 19% 12% RFL 55% 65% 9,047 8,609 9,114 7,912 7,922 0% RGAM 11% ARLI 12% RCML 11% 7% Others 0% 4% 4% Q2 FY12 Q3 FY12 Q4 F
Slide 7: Consolidated Income Statement – Q2 FY13
Consolidated Income Statement – Q2 FY13 Q-o-Q Change Y-o-Y Change (₹ mn) Q2 FY13 Q1 FY13 (%) Q2 FY12 (%) Total Income 9,114 8,609 6% 7,912 15% Personnel Expenses 1,446 1,417 2% 3,299 -56% Operating and Admin Expenses 2,336 2,122 10% 2,478 -6% Less: Net Exp. of JV Recoverable (170) (177) nm (234) nm
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ mn) As at September 30, 2012 As at June 30, 2012 Owners’ Funds 37,586 37,441 Share Capital 2,055 2,055 Reserves and Surplus 35,531 35,387 Minority Interest 1,863 2,014 Non - Current Liabilities 80,937 73,151 Current Liabilities 85,398 101,174 Total Liabilities 205,783 2
Slide 9: Business Update – 1/3
Business Update – 1/3 Strengthening the platform across multiple dimensions • Lending • Significantly strengthened our Asset Liability Profile. Raised ₹3.32 bn. through a successful retail issue of Non- Convertible Debentures (NCDs) • Capital adequacy (CRAR) of 19.02% as of 30-Sep-2012 • NIM improve
Slide 10: Business Update – 2/3
Business Update – 2/3 Focus on improving efficiencies yielding results • Retail Broking: • Pricing and mix optimisation in Equity Broking leads to slight improvement in brokerage yield • Efforts to increase operating efficiencies yielding results • Structural growth story in Commodities Broking play
Slide 11: Business Update – 3/3
Business Update – 3/3 Differentiated offerings resulting in traction with clients EM Capital Markets IBD and ECM: RCML Singapore is now ranked 2nd (by number of deals) and 11th (by deal volume) out of 23 banks for Singapore equity offerings (Source: Bloomberg) Institutional Equities 308 stoc
Slide 12: Table of Contents
Table of Contents Q2 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 11
Slide 13: Lending – Religare Finvest
Lending – Religare Finvest Increasing operational efficiencies reflected in declining Opex ratio Loan book 16% higher than year ago, held steady QOQ as we NIM increased as product-mix optimized; Opex ratio Lending closely monitor the evolving environment continues to decline as efficiencies kick in
Slide 14: Lending – Religare Finvest Financial Performance
Lending – Religare Finvest Financial Performance Lending RFL Abridged Income Statement QOQ Change YOY Change (₹ mn) Retail Broking Q2FY13 Q1FY13 (%) Q2FY12 (%) Total Income 5,901 5,729 3% 4,354 36% Operating and Administrative Expenses 672 778 -14% 711 -5% Management India Asset Personnel Expenses 2
Slide 15: Retail Broking
Retail Broking Operational improvements and pricing optimization continue Equity market-wide turnover declined QOQ. Slight Brokerage yield improved slightly as pricing and mix Lending improvement in Commodity markets turnover optimization continues (ADTO* - ₹ bn) Commodities - Futures Equities - Opt
Slide 16: Retail Broking Financial Performance
Retail Broking Financial Performance Lending RSL & RCL Combined Abridged Income Statement QOQ Change YOY Change (₹ mn) Retail Broking Q2FY13 Q1FY13 (%) Q2FY12 (%) Total Income 1,056 1,116 -5% 1,471 -28% Operating and Administrative Expenses 562 567 -1% 839 -33% Management India Asset Personnel Expen
Slide 17: Asset Management – Religare AMC
Asset Management – Religare AMC Invesco being inducted as a strategic partner Lending Industry-wide average AUM grew 8% QOQ Business update (₹ bn) Avg. Industry AUM Invesco being inducted as a strategic partner with 49% equity in RAMC Retail Broking Invesco is one of the top-15 global asset mana
Slide 18: Asset Management – Religare AMC Financial Performance
Asset Management – Religare AMC Financial Performance Lending RAMC Abridged Income Statement QOQ Change YOY Change Retail Broking (₹ mn) Q2FY13 Q1FY13 (%) Q2FY12 (%) Total Income 153 135 13% 140 9% Operating and Administrative Expenses 67 57 20% 49 38% Management India Asset Personnel Expenses 83 84
Slide 19: Health Insurance
Health Insurance Unique combination of expertise in Financial Services and Healthcare Delivery Lending RHICL Abridged Income Statement Business Update Unique ability to combine the expertise of the group in (₹ mn) financial services and healthcare delivery to provide Retail Broking Q2FY13 distinct
Slide 20: Religare Capital Markets
Religare Capital Markets Creating a sustainable platform Lending Client empanelment Business update Continue to focus on sustainability of the platform and accelerating No. of Institutional Empanelments* the path to profitability Retail Broking Strong traction in ECM in Asia driving IBD revenues
Slide 21: Religare Global Asset Management Inc. Financial Performance
Religare Global Asset Management Inc. Financial Performance Lending RGAM Inc. Abridged Consolidated Income Statement Retail Broking QOQ Change YOY Change (₹ mn) Q2FY13 Q1FY13 (%) Q2FY12 (%) Total Income 1076 1014 6% 863 25% Management India Asset Operating and Administrative Expenses 159 149 6% 122
Slide 22: Table of Contents
Table of Contents Q2 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 21
Slide 23: Religare Macquarie Wealth Management
Religare Macquarie Wealth Management Cost base resized to sustainable levels; productivity improvement continues Growing client base Steady growth in AUM No. of Clients (₹ bn) Total AUM 4,972 28.4 4,631 4,662 4,687 27.5 4,492 26.1 24.2 24.2 30-Sep-11 31-Dec-11 31-Mar-12 30-Jun-12 30-Sep-12 30-Sep-11
Slide 24: Religare Macquarie Wealth Management Financial Performance
Religare Macquarie Wealth Management Financial Performance RMWM Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q2FY13 Q1FY13 (%) Q2FY12 (%) Total Income 66 36 83% 70 -5% Operating and Administrative Expenses 32 25 26% 31 3% Personnel Expenses 58 64 -9% 86 -32% Total Expenses 90 89 1% 117 -2
Slide 25: AEGON Religare Life Insurance
AEGON Religare Life Insurance Steadily growing customer base Cumulatively insured ~240,000 lives Premium Income split (000s) No. of Customers (₹ mn) Single Renewal First year premium 1,821 88 1,048 998 1,051 1,020 213 227 240 49 7 175 190 15 790 530 562 13 706 451 682 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13
Slide 26: AEGON Religare Life Insurance Financial Performance
AEGON Religare Life Insurance Financial Performance ARLI Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q2FY13 Q1FY13 (%) Q2FY12 (%) Total Income 1507 870 73% 736 105% Operating and Administrative Expenses 1561 940 66% 837 86% Personnel Expenses 308 314 -2% 403 -24% Total Expenses 1869 1254
Slide 27: Table of Contents
Table of Contents Q2 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 26
Slide 28: Subsidiary and JV Balance Sheets (1/4)
Subsidiary and JV Balance Sheets (1/4) RFL Abridged Balance Sheet RSL & RCL Combined Abridged Balance Sheet (₹ mn) As at September 30, 2012 (₹ mn) As at September 30, 2012 Owners’ Funds 21,744 Owners’ Funds 4,023 Share Capital 2,300 Share Capital 395 Reserves and Surplus 19,444 Reserves and Surplus
Slide 29: Subsidiary and JV Balance Sheets (2/4)
Subsidiary and JV Balance Sheets (2/4) RAMC Abridged Balance Sheet RHICL Abridged Balance Sheet (₹ mn) As at September 30, 2012 (₹ mn) As at September 30, 2012 Owners’ Funds 251 Owners’ Funds 1,592 Share Capital 603 Share Capital 1,750 Reserves and Surplus (351) Reserves and Surplus (158) Non - Curr
Slide 30: Subsidiary and JV Balance Sheets (3/4)
Subsidiary and JV Balance Sheets (3/4) RGAM Abridged Balance Sheet RMWM Abridged Balance Sheet* (₹ mn) As at September 30, 2012 (₹ mn) As at September 30, 2012 Owners’ Funds 4,772 Owners’ Funds 143 Share Capital 0 Share Capital 1,190 Reserves and Surplus 4,772 Reserves and Surplus (1,047) Minority I
Slide 31: Subsidiary and JV Balance Sheets (4/4)
Subsidiary and JV Balance Sheets (4/4) ARLI Abridged Balance Sheet* (₹ mn) As at September 30, 2012 Owners’ Funds 1,427 Share Capital 11,628 Reserves and Surplus (10,201) Non - Current Liabilities 8887 Current Liabilities 721 Total Liabilities 11,034 Non - Current Assets Fixed Assets 82 Long - Term
Slide 32: Thank You
Thank You 31 SE RELIGA