Smc Global Securities Ltd. (india) · NSE:SMCGLOBAL
Smc Global Securities Ltd. (india) — SMC Global Securities — Investor Presentation (September 2021)
39 slides from Smc Global Securities Ltd. (india)'s investor presentation, Sep 9, 2021
Slide 1: Exchange filing cover letter: Investor Presentation September 2021
“Acmc SMC GLOBAL SECURITIES LIMITED Member: NSE « BSE » MSE + NCDEX + ICEX * MCX Clearing & Trading Member : Cash, F&O, Currency, Debt & Commodity SEBI Regn. No. : INZ 000199438 » Research Analyst No. : INH100001849 « Investment Adviser No. : INA100012491 Moneywise. Be wise. Regd. Office : 11/6B, Sh
Slide 2: Investor Presentation September 2021
INVESTOR PRESENTATION SEPTEMBER 2021
Slide 3: SMC at a Glance
SMC at a Glance Branches Across India Cities Covered Unique Clients Employees Sub-brokers / Network of Financial 95+ Authorised Persons 550+ 1,900,000+ 3,600+ Distributors Including 1 in Dubai 2,550+ 13,500+ Clearing & Settlement Cumulative AUM/AUA Running SIPs Insurance Policies sold Insurance Clie
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 8,929 22.19% 21.04% company offering brokerage
Slide 5: Business Structure
Business Structure SMC Global Securities Ltd. Insurance Broking Broking, Distribution & Trading Financing Equity, Commodity, Currency & Institutional Broking Discount Broking Clearing Services Financial Products Distribution Proprietary Trading Fixed Income Wealth Management Portfolio Management Rea
Slide 6: Board of Directors
Board of Directors Mr. Mahesh C. Gupta Mr. Subhash C. Aggarwal Vice Chairman & Managing Director, SMC Group, Director-SMC Insurance Brokers Chairman & Managing Director, SMC Group Pvt. Ltd. He is the promoter and co-founder of SMC Group and an active contributor to the good He is the promoter and co
Slide 7: Group Company Chairman/Directors & Key Management Personnel
Group Company Chairman/Directors & Key Management Personnel Dr. D. K. Aggarwal Mr. Pravin K. Agarwal CMD-SMC Investments and Advisors Ltd. Whole-Time Director- SMC Insurance Brokers Pvt. Ltd. CMD-SMC Capitals Ltd. Chairman & Director-SMC Real Estate Advisors Private Ltd. He actively handles the deve
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 95+ Branches in India including Dubai Jammu 550+ Cities covered across India Punjab 2,550+ Sub Brokers / Authorised Persons Amritsar Mandi Jalandhar Shimla Ludhiana Chandigarh Bhathinda Dehradun Haryana Patiala Panipat Sambalpur Delhi Meerut Lucknow Guwahati Gur
Slide 10: Awards & Accolades
Awards & Accolades 2021 2019 2019 2019 2019 2018 KRISHI Award for Business Broking House Premier Depository Fastest Growing MFI “Regional Retail developing Retail Excellence Award Non-Agricultural Participant in Gold North in Best Star Member of the Segment (Order of Merit) Commodities of Category M
Slide 11: Key Strengths
Key Strengths • Over 25 Years of Management 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 of digital techn
Slide 12: Broking, Distribution & Trading
Broking, Distribution & Trading 11
Slide 13: Broking, Distribution & Trading
Broking, Distribution & Trading • Broking business comprises of brokerage in dealing in equities, commodities, currency derivatives and other securities on behalf of customers, clearing services across all major stock exchanges and Segment Revenue* (INR Mn) depository services. 5,794 • Distribution
Slide 14: Broking
Broking Equity, Commodity & Currency Broking: • SMC is serving more than 620,000 unique clients under the broking segment. • Equity segment under broking has been successful in generating a combined turnover of approx. INR 146 Tn* in FY21 higher by 34% as compared to previous year’s turnover of INR
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 HTML5 (Mobile Responsive Format). tools for trading such as SMC enables us to identify and segregate • Next ge
Slide 17: Distribution
Distribution Mutual Funds AUM (INR Bn) • SMC offers distribution services of financial products including IPO’s, Mutual Funds, Company Fixed Deposits, Bonds, through its network of branches and channel partners across India. 30 30 28 29 • SMC also provides retail financing through NBFC division in I
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 10,320+ with managed 5,060 AUM/AUA of INR 4,564 Mn. 4,400 4,564 • We have our direct sales branches/ regional offices at Delhi, Mumbai, Bangalore and 3,470 3,080 Pune. Portfolio Management:
Slide 20: Broking Industry Outlook
Broking Industry Outlook • Equity broking industry revenue to log 11-12% CAGR in next five fiscals driven by a growth of 23-25% in turnover volumes as per ICRA. Rising Penetration of Demat Accounts in India 4.10% • High investor awareness, increased retail interest across market segments, easier and
Slide 21: Insurance Broking
Insurance Broking 20
Slide 22: Insurance Broking
Insurance Broking Segment Revenue* (INR Mn.) 2,400 2,207 1,775 • 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 1,054 services in Life Insurance and General Insurance Cate
Slide 23: Insurance Broking
Insurance Broking General Insurance (GI) Gross Premium GI + LI (INR Mn) Non-Life / General Insurance contributes around 95% of the total revenues (FY21) of the Company. 17,364 15,826 • Within this segment, sales primarily happen through MISP (Motor Insurance Service 13,629 13,716 12,502 Provider), P
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 11,100 11,508 8,000 • Best in industry quality processes • 100% verification of all lead
Slide 25: Insurance Industry Outlook
Insurance Industry Outlook • The insurance industry in India is expected to reach USD 280 Bn. Life insurance Insurance Premium as a % of GDP industry in the country is expected to grow 12-15% annually over the next three to five years. 0.70% 0.80% 0.90% 1.00% 0.90% • Insurance reach is still low in
Slide 26: Financing (NBFC)
Financing (NBFC) 25
Slide 27: NBFC Business in numbers
NBFC Business in numbers Satisfied Customers Channel Partners Employees Number of Lenders ~26,000+ 240+ 144 10+ Branches Net Worth Loan AUM Cumulative Loans 7 INR 3,477 Mn INR 5,580 Mn Disbursed INR 10 Bn+ NNPA % ROTA % Revenue Total Borrowings/Leverage Ratio 3.2% 4.1% INR 230 Mn INR 2,173 Mn / 0.6x
Slide 28: NBFC – Systemically Important (SI)
NBFC – Systemically Important (SI) Segment Revenue (INR Mn) 988 • In the year 2008, SMC started providing financing services through its wholly owned subsidiary, 878 821 Moneywise Financial Services Pvt. Ltd. (SMC Finance). 772 • SMC Finance offers a wide bouquet of loan products i.e. SME financing,
Slide 29: Borrowing Mix Diversification
Borrowing Mix Diversification Diversified Borrowing Mix • Increasing diversity in borrowing profile with borrowing from banks & financial institutions 44% 41% 49% 42% 44% • Continued plan to raise additional funds through diversified sources and through varied instruments 13% 10% 29% 36% 11% 40% 45%
Slide 30: NBFC - Key Business Trends
NBFC - Key Business Trends AUM (INR Mn) Disbursements (INR Mn) NII (INR Mn) & NIM (%) 3,260 5,892 5,829 2,850 11.80% 2,730 2,770 800 11.60% 5,671 11.50% 5,580 623 607 618 530 5,142 400 11.10% 10.30% 165 275 - FY18 FY19 FY20 FY21 Q1-FY22 FY18 FY19 FY20 FY21 Q1-FY22 FY18 FY19 FY20 FY21 Q1-FY22 GNPA %
Slide 31: NBFC Industry Outlook
NBFC Industry Outlook • Non-Banking Finance Companies (NBFCs) have played an important role in the Indian financial MSME Credit Market – India system by complementing and competing with banks, and by bringing in efficiency and diversity into financial intermediation. Market Size: • NBFCs have evolve
Slide 32: Financial Overview
Financial Overview 31
Slide 33: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY19 FY20 FY21 Q1-FY22 Operational Income 7,528 7,785 8,929 2,307 Total Expenses 5,944 6,599 7,060 1,795 EBITDA 1,584 1,186 1,869 512 EBITDA Margins (%) 21.04% 15.23% 20.93% 22.19% Other Income 67 56 86 18 Depreciation 113 192 180 46 Inte
Slide 34: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Particulars (INR Mn) FY20 FY21 Particulars (INR Mn) FY20 FY21 ASSETS EQUITY AND LIABILITIES Non-Financial Assets Equity Inventories - 132 Share Capital 226 226 Current tax assets (net) 305 224 Other Equity 6,588 7,501 Deferred tax assets (net) 399 317 Non-contro
Slide 35: Historical Standalone Income Statement
Historical Standalone Income Statement Particulars (INR Mn) FY19 FY20 FY21 Q1-FY22 Operational Income 4,248 4,219 4,930 1,404 Total Expenses 3,627 3,588 3,759 1,059 EBITDA 621 631 1,171 345 EBITDA Margins (%) 14.62% 14.96% 23.75% 24.57% Other Income 185 310 215 37 Depreciation 91 139 118 33 Interest
Slide 36: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet Particulars (INR Mn) FY20 FY21 Particulars (INR Mn) FY20 FY21 ASSETS EQUITY AND LIABILITIES Non-Financial Assets Equity Inventories - 132 Share Capital 226 226 Current tax assets (net) 161 163 Other Equity 5,877 6,488 Deferred tax assets (net) 184 80 Total Equity
Slide 37: Consolidated Financial Charts
Consolidated Financial Charts Revenue (INR Mn) EBITDA (INR MN) & EBITDA Margin (%) PAT (INR MN) & PAT MARGIN (%) 8,929 2,000 20.93% 21.04% 7,785 19.22% 11.21% 7,528 1,600 17.63% 9.94% 12.00% 6,439 15.23% 1,869 8.79% 1,584 8.03% 10.00% 5,216 1,200 1,001 1,238 8.00% 1,186 800 748 6.00% 920 3.07% 400 4
Slide 38: Capital Market Data
Capital Market Data 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% February 21 March 21 April 21 May 21 June 21 SMC Sensex Price Data as on 30th June, 2021 Shareholding Pattern (as on 30th June 2021) Face Value 2.0 CMP 77.10 37.67% 52 Week H/L 109.85/65.00 Market Cap (INR Mn) 8,722.32 62.33% No. of
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
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