Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — Q2 FY25 Earnings Presentation
60 slides from Emkay Global Financial Services's earnings presentation, November 2024
Slide 1: Investor Presentation Q2 FY25
INVESTOR PRESENTATION Q2 1 FY 25
Slide 2: Safe Harbour
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, financia
Slide 3: Letter to Investors
Dear Investors, Season’s Greetings! We are delighted to share that the momentum seen in our business and earnings in Q1 FY 25 has accelerated in Q2 FY 25 with Q2 FY 25 being our best-ever quarterly performance so far. Our Institutional Equities and ECM verticals achieved significant milestones, comp
Slide 4: Investor Insights: Addressing Your Key Questions
Investor Insights: Addressing Your Key Questions 4 Q2 FY 25
Slide 5: Capital Markets
Capital Markets How was the momentum on the ECM transactions? Could you highlight some key deals or successes? Krishna Kumar Karwa: We had a strong quarter for ECM transactions, successfully executing the following deals: • Merchant bankers for Route Mobile Limited’s Offer for Sale, raising INR 6,30
Slide 6: Asset Management
Asset Management How has the asset management business performed in the second quarter? Krishna Kumar Karwa: Assets under management (AUM) and advisory have surpassed INR 15,000 million, driven by strong fund mobilization and market cap appreciation of stocks under management. This is a significant
Slide 7: Asset Management
Asset Management AIF VI – Golden Decade AIF VI 1M 3M 6M 9M Since Inception(Absolute) AIF VI - Class A 1 4.0% 17.8% 28.0% 32.7% 38.3% NSE 500 2.2% 7.5% 19.7% 24.8% 37.5% Note: The above returns are pre-tax, post fees Performance as on 30.09.2024 Quarter-wise Inflows in Funds open to Subscription Q3 (
Slide 8: Asset Management
Asset Management What measures are you implementing to broaden your reach and elevate the customer experience? Krishna Kumar Karwa: Marketing efforts are gaining momentum across India, with the empanelment of new distributors driving growth. We've also seen a notable increase in offshore advisory AU
Slide 9: Wealth Management
Wealth Management How has the wealth business performed in the second quarter, and what have been the key drivers of growth during this period? Prakash Kacholia: We have observed strong synergies between our Wealth Management and the Private Clients segment which includes family offices, HNIs, and u
Slide 10: Business Performance
BUSINESS PERFORMANCE 10 Q2 FY 25
Slide 11: Key Performance Indicators: Q2 FY25 at a Glance
KEY PERFORMANCE INDICATORS EMKAY: Q2 FY25 AT A GLANCE (Rs. million) 2,13,285 2,00,797 12,488 1,148 Total Assets Wealth Assets PMS & AIF AUM Revenue 74%YoY 75 %YoY 50%YoY 47% YoY 314 259 452 39,900 PBT PAT Total Employees Client Base 164% YoY 178% YoY As on 30.09.2024 As on 30.09.2024 5,292 2,792 31%
Slide 12: Key Highlights of Q2 FY25
KEY HIGHLIGHTS OF Q2 FY25 Consolidated Capital Markets ECM Deals revenues • 3 blocks worth INR 7,170 million eClerx: Sole banker to Buyback Offer for INR 3,850 increased by executed million 47% YoY • 4 ECM transactions worth INR 61,645 Pearl Global: Sole Merchant Bankers for the QIP for million exec
Slide 13: Revenue Mix
REVENUE MIX (Rs. Mn) Capital Markets Asset Management 2,500 2,038 Wealth Management Others including Treasury 2,000 301 1,344 1,500 1,148 586 891 781 338 156 98 1,000 339 343 146 157 60 247 63 500 199 1,053 38 33 593 600 460 392 - Q2 FY25 Q1 FY25 Q2 FY24 6M FY25 6M FY24 13 Q2 FY 25
Slide 14: Capital Market Revenue
CAPITAL MARKET REVENUE (Rs. Mn) 76% 51% 29% 1,053 600 593 460 392 Q2 Q2 FY25 Q1 FY25 Q2 FY24 6M FY25 6M FY24 14 FY 25
Slide 15: Asset Management Revenue
ASSET MANAGEMENT REVENUE (Rs. Mn) 56% 81% 58% 98 63 60 38 33 15 Q2 FY25 Q1 FY25 Q2 FY24 6M FY25 6M FY24 Q2 FY 25
Slide 16: Wealth Management Revenue
WEALTH MANAGEMENT REVENUE (Rs. Mn) 71% 70% 37% Transactional 502 Advisory 295 288 207 171 84 44 40 55 28 Q2 FY25 Q1 FY25 Q2 FY24 6M FY25 6M FY24 16 Q2 FY 25
Slide 17: Others Including Treasury Revenue
OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) 11% 1% 338 7% 301 157 156 146 17 Q2 Q2 FY25 Q1 FY25 Q2 FY24 6M FY25 6M FY24 FY 25
Slide 18: Average Daily Turnover
AVERAGE DAILY TURNOVER Equity Market ADTO (in bn) Derivative Market ADTO (in bn) 4,67,910 4,56,677 1,388 1,318 3,97,285 1,190 3,36,088 3,12,162 834 871 2,51,458 625 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1FY25 Q2 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2FY25 Emkay's ADTO (in bn) 8,456 7,790 6,036 6,0
Slide 19: Customer Assets
CUSTOMER ASSETS (Rs. Mn) Total Assets Wealth Assets 2,13,285 2,00,797 1,56,730 1,44,138 1,45,998 1,37,465 1,28,878 1,35,114 1,22,846 1,09,695 1,14,523 1,02,150 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 PMS AUM AIF AUM 7,569 6,612 4,919 5,351 4,12
Slide 20: Financial Performance
FINANCIAL PERFORMANCE 20 Q2 FY 25
Slide 21: Key Highlights: Consolidated Financials
KEY HIGHLIGHTS : CONSOLIDATED FINANCIALS Revenues Profit Before Tax Profit After Tax EPS BVPS (Rs. in mn) (Rs. in mn) (Rs. in mn) (Rs.) (Rs.) Q2 FY25 1,148 314 259 10.49 112 29% 84% 86% 86% 9% Q1 FY25 891 171 139 5.63 103 Q2 FY25 1,148 314 259 10.49 112 47% 164% 178% 179% 28% Q2 FY24 781 119 93 3.76
Slide 22: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) QoQ% YoY % % Particulars (Rs. in mn) Q2FY25 Q1 FY25 Change Q2 FY24 Change 6M FY25 6M FY24 Change Revenue Income from Operations 1,080 817 32 705 53 1,896 1,193 59 Other Income 68 74 (8) 76 (11) 142 151 (6) Total Revenue 1,148 891 29 781 47 2,038 1,344 52
Slide 23: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) QoQ% YoY % % Q2FY25 Q1 FY25 Change Q2 FY24 Change 6M FY25 6M FY24 Change Particulars (Rs. in mn) Share of Profit/(Loss) of Associates 1 (1) 200 (4) 125 - 1 (100) Profit for the Period/Year 259 139 86 93 178 398 96 315 Other Comprehensive Income (2) (5) (
Slide 24: Segment Performance
SEGMENT PERFORMANCE (Rs. Mn) QoQ% YoY % % Q2FY25 Q1 FY25 Change Q2 FY24 Change 6M FY25 6M FY24 Change Segment Revenue Advisory, Transactional & Other Related Activities 1,128 866 30 768 47 1,993 1,311 52 Financing and Investment Activities 20 25 (20) 13 54 45 33 36 Income from Operations 1,148 891 2
Slide 25: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET (Rs. Mn) Networth and Leverage Cash and Cash Equivalents 3500 0.16 600 3000 0.14 500 0.12 400 2500 0.10 300 2000 0.08 200 1500 0.06 100 1000 0 0.04 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 500 0.02 Short-Term Rating of Non-Convertible Debenture Programme 0 - Q1 FY 2
Slide 26: Capital Markets
CAPITAL MARKETS 26 Q2 FY 25
Slide 27: Key Highlights: ECM Transactions
KEY HIGHLIGHTS 4 ECM transactions 13 11 worth INR 61,645 million executed Group calls/Events Roadshows /Conferences Projected revenue from mandates secured, with delivery expected 88 11 over the next 24 months Corporate & Industry ~ INR 1,000 million Expert Client Calls Reports Released New ECM Deal
Slide 28: ECM Transactions in Q2
ECM TRANSACTIONS IN Q2 01 03 02 04 Sole Banker Merchant Banker to Buyback to the Offer for Sole Merchant Merchant Banker Offer for Sale for Banker for the to the QIP for INR 3,850 mn INR 6,300 mn QIP for INR 50,000 mn INR 1,495 mn 0 1 28 Q2 FY 25
Slide 29: Conferences in Q2: August Conference 2024
CONFERENCES IN Q2 Emkay Institutional Equities organized August Conference 2024 which was attended by 179 184 548 110 403 35 C o m p a ni e s Funds Individuals Fund Analysts CIO/MD/ Managers HoE/HoR Resulting in 2711 241 Group One-on-One meetings sessions 29 Q2 FY 25 Clients
Slide 30: August Confluence 2024
AUGUST CONFLUENCE 2024 30 Q2 FY 25
Slide 31: Conferences in Q2: Speakers/Panel
CONFERENCES IN Q2 Emkay August Confluence 2024 - Speakers/Panel Sr. No. Speaker Name 1 Speaker Sagar Adani, ED, Adani Green Energy & Jugeshinder (‘Robbie’) Singh, Group CFO, Adani Group 2 Speaker Rajeev Chaba, CEO Emeritus, JSW MG Motor India 3 Speaker Ashish Bharat Ram, Chairman and MD, SRF 4 Speak
Slide 32: Corporate Access
CORPORATE ACCESS During Q2 FY25 the Institutional Equities team held 13 88 11 roadshows expert and Group Calls/ client calls Event/ Conference 32 Q2 FY 25
Slide 33: Some Industry Reports Released
SOME INDUSTRY REPORTS RELEASED 33 Q2 FY 25
Slide 34: Asset Management
ASSET MANAGEMENT PMS & AIF vertical (Emkay Investment Managers Ltd.) 34 Q2 FY 25
Slide 35: Key Highlights
KEY HIGHLIGHTS Total Number of Strategies Outperforming number of that outperformed Strategies basis Strategies Benchmark AUM (%) 6 5 74.8% 35 Q2 FY 25
Slide 36: Key Highlights
KEY HIGHLIGHTS AUM and advisory assets crossed Enhancing customer A dedicated presence INR 15,000 million, fueled by new fund experience is a key focus, in the Middle East is and market cap appreciation of stocks supported by ongoing planned and currently under management. Large ticket operational i
Slide 37: Performance
PERFORMANCE Emkay Capital Builder 1M 3M 6M 1Y 2Y 3Y 5Y Since Inception Emkay Capital Builder - TWRR 2.5 11.7 23.7 39.9 31.5 21.4 22.4 18.2 BSE 500 TRI 2.1 7.6 20.2 41.1 28.8 18.4 22.4 17.3 Nifty 50 TRI 2.3 7.8 16.6 33.0 24.2 14.9 19.0 15.5 Note: Performance as on 30.09.2024 AUM of Capital Builder as
Slide 38: Wealth Management
WEALTH MANAGEMENT 38 Q2 FY 25
Slide 39: Wealth Management
WEALTH MANAGEMENT Wealth AUMs increased 75% YoY to INR 2,00,797 million vis-à-vis INR 1,14,523 million Advisory revenue grew by 57% YoY to INR 44 million Transactional revenue grew by 73% YoY to INR 295 million Emkay Wealth undertakes regular and stringent monitoring of portfolios Research Reports •
Slide 40: Key Highlights
KEY HIGHLIGHTS AUM GROWTH (Rs. Mn) Branches No. of Relationship Managers 2,50,000 2,00,797 55+ 2,00,000 1,45,998 1,50,000 1,28,878 1,35,114 1,14,523 1,02,150 1,00,000 24 50,000 - Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 No. of Clients Revenue (Q2 FY25) Assets 36,553 36,600 36,500 Direct Equit
Slide 41: Technology Edge: Improving Business Efficiency
TECHNOLOGY EDGE Improving Business Efficiency 41 Q2 FY 25
Slide 42: Infrastructure & Security Aspects
INFRASTRUCTURE & SECURITY ASPECTS Robust Infrastructure Strong Network • Scaled up & fine-tuned hardware for reliability with • Ensuring high availability of systems with increased network continuous improvisations in performance bandwidth to accommodate the escalating data traffic 01 03 • Hyper-con
Slide 43: Technology for Business
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 • Client Relations are managed via CRM. time infor
Slide 44: Digital First Approach
DIGITAL FIRST APPROACH Software: Exploring new horizons • Competitive Product And Service Offering across the platforms with API initiatives with various integrations. • Secure backend and frontend services with regular hardening of platforms and performing vulnerability assessment and penetration t
Slide 45: Achievements in Q2 FY25
Achievements in Q2 FY 25 • New COO Dashboard implemented for overall risk & margin monitoring in near real-time. • Implementation of DMA and Non-DMA TAN Algo systems for the Dealing desk. • Upgrade of application stack for EIML to strengthen the security posture, operational efficiency, and new prod
Slide 46: Human Resources
HUMAN RESOURCES 46 Q2 FY 25
Slide 47: Human Resource Initiatives Q2 FY25 at a Glance
HUMAN RESOURCE INITIATIVES Q2 FY25 AT A GLANCE An offsite was organized for the Business 1-to-1 Help Employee assistance program Support teams with the theme of was extended to take care of Employee ‘Collaboration’ and ‘ONE EMKAY’. mental wellness. Health check-up camps were conducted at Mediclaim i
Slide 48: Human Resource Initiatives Q2 FY25 at a Glance
HUMAN RESOURCE INITIATIVES Q2 FY25 AT A GLANCE Continuous Training We continue to hire from In ensuring we provide a safe working interventions for our reputed B-schools and place for our employees, training employees on professionals to build a young relating to Prevention of Sexual technical, func
Slide 49: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 49 Q2 FY 25
Slide 50: CSR Drive
CSR DRIVE During the quarter Emkayites came out in huge numbers to contribute towards a CSR drive in collaboration with Goonj, reflecting their deep commitment to sustainability and a sincere desire to bring a positive change to the lives of those less privileged. Click Here to Watch 50 Q2 FY 25
Slide 51: Corporate Overview
CORPORATE OVERVIEW 51 Q2 FY 25
Slide 52: Emkay Promise, Mission & Values
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 our client’s expectations right from ensuring that every person from Emkay meets the set value proposition. We also recall Emk
Slide 53: Resilience and Responsibility: Our Differentiators
RESILIENCE AND RESPONSIBILITY: OUR DIFFERENTIATORS Sustainability: Corporate Governance: In the wealth creation journey, we are with We ensure full transparency and accountability our clients for the long haul. Our approach, philosophy and while conducting our business in a highly frameworks are all
Slide 54: A Legacy of Nearly 30 Years
A LEGACY OF NEARLY 30 YEARS 01 02 03 04 A 360 degree Relationship Focus: Strong Promoters Significant Research approach: From being an The one thing that hasn’t & Board: Pioneered by capabilities: Our institutional broking house to changed since our first-generation institutional research one offeri
Slide 55: The Journey
THE JOURNEY Successful Emkay launch of Emkay Incorporated Investment Launched the Emkay Insurance Emkay Global Financial Commenced Emerging Stars Fund Managers Investment Brokers Limited Services Pte Ltd. equity broking - Series I, II & III inaugurated their Banking rechristened in Singapore; on NSE
Slide 56: Products & Services
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 Investment Banking: Caters to Public Market, Private Market, ECM and Corporat
Slide 57: The Board
THE BOARD Mr. Sushil Kumar Saboo Dr. Satish Ugrankar Chairman Independent Director Group Advisor (Chairman’s Office) for Aditya Birla M.S., D’ORTH (CPS) and F.C.P.S.(CPS), (Mumbai) Group, one of the premier business groups of India. Dr. Bharat Kumar Singh Mr. Krishna Kumar Karwa Independent Director
Slide 58: Shareholding Summary
SHAREHOLDING SUMMARY 73.89% Promoters & Promoter Group 26.11% General Public 58 Q2 FY 25
Slide 59: Recent Awards
RECENT AWARDS Azalea Capital Partners won the ‘Best MCX AWARDS 2024 Sustainable Finance Deal 2023’ Award by Leading Member the FinanceAsia Achievement Awards for Participating in Energy South Asia for acting as the Sole Arranger and Advisor to Gravita Netherland BV's ESG fundraise of EUR 34 million.
Slide 60: Contact Us
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), Mumbai - 400028. 60 Q2 FY 25
Emkay Global Financial Services — Q2 FY25 Earnings Presentation on 6ix