Smc Global Securities Ltd. (india) · NSE:SMCGLOBAL
Smc Global Securities Ltd. (india) — SMC Global Securities — Investor Presentation (June 2023)
40 slides from Smc Global Securities Ltd. (india)'s investor presentation, Jun 16, 2023
Slide 1: Exchange filing letter: Investor Presentation Q4 FY22-23
SMC GLOBAL SECURITIES LIMITED $smc Member: NSE « BSE + MSE NCDEX - MCX Clearing & Trading Member : Cash, F80, Currency, Debl & Commodily ‘SEBI Regn. No. : INZ 000193438 Research Analyst No. : INH100001849 Moneywise. Be wise. Regd. Office : 11/6B, Shanti Chamber, Pusa Road, New Delhi-110005 Ph: +91-1
Slide 2: Investor Presentation June 2023
Investor Presentation June 2023
Slide 3: SMC at a Glance
SMC at a Glance Branches Across India Cities Covered Employees Sub-brokers / Network of Financial 143 Client Demat A/Cs 452 3,925 Authorised Persons Distributors Including 1 in Dubai 9,37,026 2,548 6,928 Insurance Clearing & Settlement Cumulative AUM/AUA Running SIPs Insurance Policies sold 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 12,167 11,169 company offering brokerage servic
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 Received BSE membership as Real Estate Advisory Commodity NRI Business Point of Sale SAM Global Securities Fixed Income Broking Listed on NSE and Broking Institutional Persons (POS) – amalgamated into SMC Global Mortgage and Loan BSE, Launched launched Desk Approved by IRDAI Securitie
Slide 9: Geographical Reach
Geographical Reach SMC Branch Offices Jammu 143 Branches in India including Dubai Kangra 452 Cities covered across India Amritsar Mandi Shimla 2,548 Sub Brokers/ Authorised Persons Jalandhar Saharan pur Ludhiana Chandigarh Bhathinda Yamuna Nagar Karnal Sirsa Haryana Dehradun Panipat Sambalpur Rohtak
Slide 10: 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 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 9,29,000 clients under the broking segment, including more than 1,94,000 clients under Stoxkart. • Equity segment under broking has been successful in generating a combined turnover of approx. INR 213.97 Tn* in Q4-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 30 • 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 10,950 with managed 6,097 AUM/ AUA of INR 6,097 Mn. 5,400 • We have our direct sales branches/ regional offices at Delhi, Mumbai, Bangalore and 4,400 Pune. 3,080 Portfolio Management: • Unde
Slide 20: 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 21: Insurance Broking
Insurance Broking 20
Slide 22: Insurance Broking
Insurance Broking Segment Revenue* (INR Mn.) 3,482 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 Cate
Slide 23: Insurance Broking
Insurance Broking General Insurance (GI) Insurance Gross Premium (INR Mn) Non-Life/ General Insurance contributes around 93.40% 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 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 13,672 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 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 26: Financing (NBFC)
Financing (NBFC) 25
Slide 27: FY23 NBFC Business in numbers
FY23 NBFC Business in numbers 91 Channel Partners Employees Number of Lenders 9 Branches 261 16 Collection Efficiency Net Worth Loan AUM Cumulative Loans Disbursed close to 99% INR 4,002 Mn INR 9,004 Mn INR 22 Bn+ NNPA % ROTA % Revenue Total Borrowings/Leverage Ratio 1.44% 4.54% INR 1,371 Mn INR 5,7
Slide 28: NBFC – Middle Layer
NBFC – Middle Layer Segment Revenue (INR Mn) 1,370 • In the year 2008, SMC started providing financing services through its wholly owned subsidiary, Moneywise Financial Services Pvt. Ltd. (SMC Finance). • During the year, the Company offered wide spectrum of financial products like SME- LAP (Loan 98
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 49% 42% 49% through various instruments. 78% 13% 11% 16% • Cumulative Asse
Slide 30: FY23 Key Business Trends - NBFC
FY23 Key Business Trends - NBFC Lending Portfolio Disbursements (INR Mn) NII (INR Mn) & NIM (%) 1% 8,583 990 7% 3% 1,000 23% 900 17% 800 750 4,310 700 599 618 12.44% 2% 3,260 600 11.81% 2,810 500 11.42% 47% 400 10.96% 300 200 SME-Loan Against Property (LAP) SME-Working Capital Term Loan (WCTL) Consu
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 FY23 Operational Income 7,785 9,013 11,169 12,167 Total Expenses 6,599 7,060 8,218 9,468 EBITDA 1,186 1,953 2,951 2,699 EBITDA Margins (%) 15.23% 21.67% 26.42% 22.18% Other Income 56 69 39 41 Depreciation 192 180 201 227 In
Slide 34: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY21 FY22 FY23 Particulars (INR Mn) FY21 FY22 FY23 ASSETS EQUITY AND LIABILITIES Non-Financial Assets Equity Inventories 132 345 52 Share Capital 226 226 209 Current tax assets (net) 224 365 290 Other Equity 7,501 9,035 9,118 Deferred tax as
Slide 35: Historical Standalone Income Statement
Historical Standalone Income Statement Particulars (INR Mn) FY20 FY21 FY22 FY23 Operational Income 4,219 5,013 6,699 6,792 Total Expenses 3,587 3,760 4,503 4,971 EBITDA 632 1,253 2,196 1,821 EBITDA Margins (%) 14.98% 25.00% 32.78% 26.81% Other Income 310 197 142 136 Depreciation 139 118 144 170 Inte
Slide 36: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Particulars (INR Mn) FY21 FY22 FY23 Particulars (INR Mn) FY21 FY22 FY23 ASSETS EQUITY AND LIABILITIES Non-Financial Assets Equity Inventories 132 237 2 Share Capital 226 226 209 Current tax assets (net) 163 212 106 Other Equity 6,489 7,706 7,471 Deferred tax asset
Slide 37: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT MARGIN (%) 35.00% 12,167 3,200 2,951 1,746 11,169 2,800 2,699 30.00% 9,013 2,400 1,204 25.00% 7,785 1,953 2,000 1,050 20.00% 1,600 1,186 15.00% 1,200 26.42% 15.63% 10.00% 800 22.18%
Slide 38: Capital Market Highlights
Capital Market Highlights 1 Year Stock Performance (as on 31st March, 2023) 20% SMC Sensex 15% 10% 5% 0% -5% -10% -15% Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Price Data (As on 31st March, 2023) Shareholding Pattern (As on 31st March, 2023) Face Value 2.00
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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