Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — Q2 FY24 Earnings Presentation
50 slides from Emkay Global Financial Services's earnings presentation, Oct 30, 2023
Slide 1: Exchange filing cover letter for Q2 FY24 investor presentation
30.10.2023 To, To, Listing Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza P. J. Tower, Dalal Street, Bandra Kurla Complex Mumbai- 400 001 Bandra (East), Mumbai- 400 051 Scrip Code: EMKAY Scrip Code: 532737 Dear Sir, Sub: Investor presentation for th
Slide 2: Investor Presentation Q2 FY24
1 INVESTOR Q2 FY 24 PRESENTATION
Slide 3: Safe Harbour
2 SAFE HARBOUR This presentation and the following discussion may contain “forward looking statements” by Emkay Global Financial Services Limited (EGFSL) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 4: Business Performance Q2 FY24
3 BUSINESS PERFORMANCE Q2 FY 24 Q2 FY24
Slide 5: Key Performance Indicators: Q2 FY24 at a Glance
4 KEY PERFORMANCE INDICATORS EMKAY: Q2 FY24 AT A GLANCE (Rs. million) 2,75,464 26,039 7,931 2,41,495 Total Assets Wealth Assets PMS & AIF AUM DP/Broking Assets 29%YoY 16%YoY 21%YoY 30%YoY 780 118 93 494 Revenue PBT PAT Total Employees Q2 FY 24 35% YoY 51% YoY 52% YoY As on 30.09.2023 1,52,705 2,135
Slide 6: Key Highlights of Q2 FY24
5 KEY HIGHLIGHTS OF Q2 FY23 Consolidated revenues Consolidated PAT Emkay Confluence 2023 Investment Banking increased by increased by 2,225% QoQ to INR 93 mn • Senco Gold Limited: Advisor to IPO for 39% QoQ to INR 780 mn was organized in August 2023 by the IE team and was INR 4,050 mn attended by •
Slide 7: Revenue Mix
6 REVENUE MIX (Rs. Mn) 1,600 1,343 Broking & Allied Services Asset Management 1,400 Wealth Management Others including Treasury 1,098 1,200 435 1,000 780 299 55 800 63 563 579 62 62 253 600 Q2 FY 24 28 145 33 182 400 39 790 27 29 30 675 466 200 366 324 - Q2 FY24 Q1 FY 24 Q2 FY 23 6M FY24 6M FY23
Slide 8: Broking Revenue
7 BROKING REVENUE 17% (Rs. Mn) 27% 790 675 44% 466 Q2 FY 24 366 324 Q2 FY24 Q1 FY24 Q2 FY23 6M FY24 6M FY23
Slide 9: Asset Management Revenue
8 ASSET MANAGEMENT REVENUE (Rs. Mn) 2% 13% 63 62 10% 33 30 29 Q2 FY 24 Q2 FY24 Q1 FY24 Q2 FY23 6M FY24 6M FY23
Slide 10: Wealth Management Revenue
9 WEALTH MANAGEMENT REVENUE (Rs. Mn) 11% 28% 62 55 4% 39 Q2 FY 24 28 27 Q2 FY24 Q1 FY24 Q2 FY23 6M FY24 6M FY23
Slide 11: Others Including Treasury Revenue
10 OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) 45% 74% 435 39% 299 253 Q2 FY 24 182 145 Q2 FY24 Q1 FY24 Q2 FY23 6M FY24 6M FY23
Slide 12: Average Daily Turnover
11 AVERAGE DAILY TURNOVER Equity Market ADTO (in bn) Derivative Market ADTO (in bn) 834 3,12,162 787 722 708 680 2,51,458 613 602 625 570 2,15,552 527 1,60,447 1,31,980 1,08,139 95,158 71,931 59,958 45,357 Q1 FY 22 Q2 FY 22 Q3 FY 22 Q4 FY 22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q1 FY 22 Q
Slide 13: Customer Assets
12 CUSTOMER ASSETS (Rs. Mn) Total Assets Wealth Assets DP/Broking Assets 2,41,495 2,75,464 26,165 26,039 23,189 2,06,349 2,39,681 22,425 22,129 1,92,011 2,14,173 2,21,184 21,221 21,104 20,714 1,85,175 2,06,039 19,859 1,77,659 19,470 1,64,660 1,58,905 1,93,075 1,85,974 1,74,816 1,79,398 1,45,372 1,49
Slide 14: Financial Performance Q2 FY24
13 FINANCIAL PERFORMANCE Q2 FY 24 Q2 FY24
Slide 15: Key Highlights: Consolidated Financials
14 KEY HIGHLIGHTS : CONSOLIDATED FINANCIALS Revenues Profit Before Tax Profit After Tax EPS BVPS (Rs. mn) (Rs. mn) (Rs. mn) (Rs.) (Rs.) Q2 FY24 780 118 93 3.76 88 39% 808% 2,225% 2,586% 3% Q1 FY24 563 13 4 0.14 85 Q2 FY24 780 118 93 3.76 88 Q2 FY 24 35% 51% 52% 52% 4% Q2 FY23 579 78 61 2.48 84 6M FY
Slide 16: Consolidated Profit & Loss Statement
15 CONSOLIDATED PROFIT & LOSS STATEMENT QoQ% YoY % % Particulars (Rs. mn) Q2FY24 Q1 FY24 Change Q2 FY23 Change 6M FY24 6M FY23 Change Revenue Income from Operations 704 488 44 566 24 1,192 1,074 11 Other Income 76 75 1 13 485 151 24 529 Total Revenue 780 563 39 579 35 1,343 1,098 22 Expenses Employe
Slide 17: Consolidated Profit & Loss Statement (continued)
16 CONSOLIDATED PROFIT & LOSS STATEMENT QoQ% YoY % % Q2FY24 Q1 FY24 Change Q2 FY23 Change 6M FY24 6M FY23 Change Particulars (Rs. mn) Share of Profit/(Loss) of Associates (3) 5 (160) (2) 50 2 - 100 Profit for the Period/Year 93 4 2,225 61 52 97 107 (9) Q2 FY 24 Other Comprehensive Income - (10) (100
Slide 18: Consolidated Balance Sheet: Assets
17 CONSOLIDATED BALANCE SHEET Particulars (Rs. mn) As at 30.09.2023 As at 31.03.2023 ASSETS Financial Assets (a) Cash and cash equivalents 74.28 294.76 (b) Bank Balance other than (a) above 4,308.98 3,191.09 (c) Derivative financial instruments 0.13 - (d) Stock in trade (Securities held for trading)
Slide 19: Consolidated Balance Sheet: Liabilities and Equity
18 CONSOLIDATED BALANCE SHEET Particulars (Rs. mn) As at 30.09.2023 As at 31.03.2023 LIABILITIES AND EQUITY LIABILITIES Financial Liabilities (a) Derivative financial instruments 3.79 - (b) Payables 1,732.44 1,202.59 (c) Borrowings (other than debt securities) 176.95 149.69 (d) Deposits 113.29 103.6
Slide 20: Consolidated Financials - PAT Mix
19 CONSOLIDATED FINANCIALS - PAT MIX (Rs. Mn) QoQ% YoY % % Q2FY24 Q1 FY24 Change Q2 FY23 Change 6M FY24 6M FY23 Change a) Capital Markets (Broking, Wealth Management & 75 (43) 274 37 103 32 71 (55) IB) b) Asset Management 9 11 (18) 9 - 20 10 100 c) Others 9 35 (74) 15 (40) 44 26 69 Q2 FY 24 Profit A
Slide 21: Segment Performance
20 SEGMENT PERFORMANCE (Rs. Mn) QoQ% YoY % % Q2FY24 Q1 FY24 Change Q2 FY23 Change 6M FY24 6M FY23 Change Segment Revenue Advisory, Transactional & Other 767 543 41 555 38 1,290 1,054 22 Related Activities Financing and Investment Activities 13 20 (35) 24 (46) 33 44 (25) Income from Operations 780 56
Slide 22: Institutional Equities
21 INSTITUTIONAL Q2 FY 24 EQUITIES
Slide 23: Emkay Confluence 2023
22 CONFERENCES IN Q2 Emkay Institutional Equities organized Emkay Confluence 2023 which was attended by 152 596 Q2 FY 24 142 companies funds individual participants 3,256 group meetings
Slide 24: Corporate Access
23 CORPORATE ACCESS During Q2 FY24 the Institutional Equities team held Q2 FY 24 11 47 47 roadshows expert and Group Calls/ client calls Event/ Conference
Slide 25: Q2 FY24 Highlights: New Leadership
24 Q2 FY24 HIGHLIGHTS New Leadership Seshadri Sen Head of Research and Strategist Q2 FY 24 Seshadri is a postgraduate from XLRI Jamshedpur and is a CFA charter holder. In his last assignment, he worked with Alchemy Capital as Head of Research. Seshadri comes with nearly three decades of experience i
Slide 26: Asset Management
25 ASSET MANAGEMENT Q2 FY 24 PMS & AIF vertical (Emkay Investment Managers Ltd.)
Slide 27: Q2 FY24 Highlights: New Leadership
26 Q2 FY24 HIGHLIGHTS New Leadership Manish Sonthalia Chief Investment Officer Manish Sonthalia assumed the role of Chief Investment Officer Q2 FY 24 at EIML, bringing with him over thirty years of extensive expertise in equity fund management and research within the Indian markets. Notably, he has
Slide 28: Investment Banking
27 INVESTMENT Q2 FY 24 BANKING
Slide 29: Key Highlights
28 KEY HIGHLIGHTS Advisor to Sole Merchant Completion of IPO for Banker for QIP buyback for INR 4,050 mn for INR 2,000 mn INR 550 mn Q2 FY 24 01 02 03
Slide 30: Wealth Management
29 WEALTH Q2 FY 24 MANAGEMENT
Slide 31: Wealth Management
30 WEALTH MANAGEMENT In less than 3 years Emkay Wealth emerged from a start-up wealth business to operating in 9 locations Managing INR 26,039 mn under MF Advisory & Distribution Undertakes regular and stringent monitoring of portfolios Tied up with Stockal to provide clients the option of investing
Slide 32: Key Highlights
31 KEY HIGHLIGHTS AUD GROWTH (Rs. Mn) Branches No. of AUD AUD Transactions 30,000 26,165 26,039 25,000 22,425 23,189 22,129 21,221 21,104 20,714 72% 19,859 20,000 15,000 10,000 10 INR 26,039 Mn 5,000 YOY - Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 REVENUE (Q2 FY24) Q2 F
Slide 33: Technology Edge
32 TECHNOLOGY Q2 FY 24 EDGE
Slide 34: Technology Innovation, Improving Business Efficiency
33 TECHNOLOGY INNOVATION, IMPROVING BUSINESS EFFICIENCY Vision Build & Develop a stable robust platform by creating digital experience across all the touch points; by anticipating market needs and providing customized products towards digital disruption. Mission Conversion from “As-a-service” to “Bu
Slide 35: Infrastructure & Security Aspects
INFRASTRUCTURE & SECURITY ASPECTS 34 Robust Infrastructure Strong Network • Scaled up & fine tuned hardware for reliability with • Ensuring high availability of systems across the continuous improvisations in performance network • New hyper-converge platform improvising the • Robust & reliable netwo
Slide 36: Technology for Business
35 TECHNOLOGY FOR BUSINESS State-of-the-art Electronic Execution Solutions Technology Experience across trading technology across the landscape Sales, Research & Operations • Connectivity for disseminating real- • Multiple trading solutions deployed to offer • Client Relation with branches, business
Slide 37: Digital First Approach
36 DIGITAL FIRST APPROACH Software: Exploring new horizons • Competitive Product And Service Offering across the platforms with API initiatives with Integrations in Back office software for Banks, KYC & Ops • Ruggedization of key backend & frontend services with regular hardening of platforms and pe
Slide 38: Human Resources Q2 FY24
37 HUMAN RESOURCES Q2 FY 24 Q2 FY24
Slide 39: Human Resources Initiatives: Q2 FY24 at a Glance
38 HUMAN RESOURCES INITIATIVES Q2 FY24 AT A GLANCE Launched EAP (Employee Assistance Program): A comprehensive Employee Wellness Program was inaugurated, extending its benefits to all employees and their family members across all locations. This initiative provides a robust platform for employees to
Slide 40: Human Resources Initiatives: Q2 FY24 at a Glance
39 HUMAN RESOURCES INITIATIVES Q2 FY24 AT A GLANCE LMS Modules: Learning is now accessible for employees on the move. Our in-house developed courses feature short video modules ranging from 2 to 5 minutes, providing convenient and swift access to learning resources. Launch of “Mid-Week Shots”: Mid-W
Slide 41: Corporate Overview
40 CORPORATE Q2 FY 24 OVERVIEW
Slide 42: Emkay Promise, Mission & Values
41 EMKAY PROMISE, MISSION & VALUES Promise Handing over the responsibility for one’s finances involves immense trust. At Emkay, we go to great lengths to ensure we hold true to your expectations right from ensuring that every person from Emkay meets the set value proposition. And, also recall Emkay’
Slide 43: Resilience and Responsibility: Our Differentiators
42 RESILIENCE AND RESPONSIBILITY: OUR DIFFERENTIATORS Corporate Governance: Sustainability: We ensure full transparency and In the wealth creation journey, we are with accountability while conducting our our clients for the long haul. Our approach, philosophy and business in a highly professional an
Slide 44: A Legacy of Over 25 Years
43 A LEGACY OF OVER 25 YEARS 01 02 03 04 A 360 degree Relationship Focus: Strong Promoters Significant Research approach: From being an The one thing that & Board: Pioneered by capabilities: Emkay’s institutional broking house hasn’t changed since first-generation institutional research to one offer
Slide 45: The Journey
44 THE JOURNEY Emkay Insurance Incorporated Brokers Emkay Global Successful Limited Financial Services launch of Emkay rechristened Pte Ltd. in Emerging Stars Fund Emkay Wealth Singapore; Commenced Launched the - Series I, II & III Advisory, Emkay Fincap equity broking Investment to offer Estate and
Slide 46: Products & Services
45 PRODUCTS & SERVICES Investments: Asset & Wealth Management: Institutional & 01 Risk Profiling, Asset Allocation, Portfolio Non-Institutional Equities, Commodities, Currencies, 02 Review and Management Fixed Income Products Financial Education: Through FinLearn Academy 03 04 (an Ed-Tech focused on
Slide 47: The Board
46 THE BOARD Mr. Girindrachandra Vasudeo Independent Director A fellow member of the ICAI, the ICSI; an Associate member of the ICWAI; a law graduate from the University of Mumbai. Retired as MD & Country Manager of SI Group – India Pvt. Ltd. Mr. Sushil Kumar Saboo Chairman Group Advisor (Chairman’s
Slide 48: Shareholding Summary
47 SHAREHOLDING SUMMARY 74.49% Promoters & Promoter Group Q2 FY 24 25.51% General Public
Slide 49: Recent Awards & Recognitions
48 RECENT AWARDS & RECOGNITIONS Best Technology Emkay Emerging Stars Fund, Team (Wealth our Category III AIF was Management) at the awarded for 2nd Annual NBFC and Best post-Covid AIF FinTech Excellence performance across all Awards 2023 by categories (basis 6 months Quantic Business Absolute Return
Slide 50: Contact Us
49 CONTACT US Registered Office Tel: +91 22 6612 1212 www.emkayglobal.com 7th Floor, The Ruby, Fax: +91 22 66121299 Senapati Bapat Marg, Dadar (W), Q2 FY 24 Mumbai - 400028.
Emkay Global Financial Services — Q2 FY24 Earnings Presentation on 6ix