Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — Q1 FY25 Earnings Presentation
57 slides from Emkay Global Financial Services's earnings presentation, July 2024
Slide 1: Investor Presentation Q1 FY25
INVESTOR PRESENTATION Q1 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: Investor Insights: Addressing Your Key Questions
Investor Insights: Addressing Your Key Questions 3 Q1 FY 25
Slide 4: Investment Banking
Investment Banking How is the current macroeconomic environment affecting your deal pipeline? Krishna Kumar Karwa: Currently, the macroeconomic environment is very favorable, positively impacting our deal pipeline. On the supply side, sustained SIP inflows, which amounted to approximately INR 2 tril
Slide 5: Asset Management
Asset Management How has the performance of your flagship PMS strategy, 'Emkay Capital Builder,' been? Krishna Kumar Karwa: Emkay’s flagship investment strategy, Emkay Capital Builder, has demonstrated impressive performance over its 11+ year history. It has achieved an 18% CAGR, outperforming both
Slide 6: Asset Management
Asset Management What is your strategy to differentiate yourself in the highly competitive alternatives space? Krishna Kumar Karwa: With over 500 portfolio managers offering services in the alternatives space, the market has become highly competitive. To stand out and provide a unique service, we in
Slide 7: Wealth Management
Wealth Management What is the breakdown of your AUM across various asset classes? Prakash Kacholia: Our Assets Under Management (AUM) are diversified across several asset classes. Mutual funds constitute the largest portion, making up 51% of our total AUM. This is followed by Portfolio Management Se
Slide 8: Institutional Equities
Institutional Equities How many block transactions (in terms of value) did you execute during the quarter? Krishna Kumar Karwa: During Q1, we executed block transactions totaling approximately Rs 15 billion. This was a momentous quarter for us, reflecting the strength of our pipeline and the value w
Slide 9: Business Performance
BUSINESS PERFORMANCE 9 Q1 FY 25
Slide 10: Key Performance Indicators: Q1 FY25 at a Glance
KEY PERFORMANCE INDICATORS EMKAY: Q1 FY25 AT A GLANCE (Rs. million) 4,59,764 35,846 10,732 4,13,187 Total Assets Wealth Assets PMS & AIF AUM DP/Broking Assets 92%YoY 35 %YoY 42%YoY 101%YoY 891 171 139 519 Revenue PBT PAT Total Employees 58% YoY 1,215% YoY 3,375% YoY As on 30.06.2024 42,900 4,051 2,5
Slide 11: Key Highlights of Q1 FY25
KEY HIGHLIGHTS OF Q1 FY25 Consolidated Emkay Channel Check Investment Banking revenues The Institutional Equities team organized the • Emkay served as the merchant banker for the increased by ‘Channel Check Conference’ in June, IPO of Awfis Space Solutions Limited, 58% YoY attended by 18 dealers, ne
Slide 12: Revenue Mix
REVENUE MIX (Rs. Mn) 3,500 3,171 Broking & Allied Services Asset Management 3,000 Wealth Management Others including Treasury 1,050 2,500 117 2,000 149 1,500 891 994 1,000 157 563 1,855 282 40 38 51 38 500 27 182 656 623 30 324 - Q1 FY25 Q4 FY24 Q1 FY24 12M FY24 12 Q1 FY 25
Slide 13: Broking Revenue
BROKING REVENUE (Rs. Mn) 102% 1,855 5% 656 623 324 Q1 Q1 FY25 Q4 FY24 Q1 FY24 12M FY24 13 FY 25
Slide 14: Asset Management Revenue
ASSET MANAGEMENT REVENUE (Rs. Mn) 149 26% 25% 51 38 30 14 Q1 FY25 Q4 FY24 Q1 FY24 12M FY24 Q1 FY 25
Slide 15: Wealth Management Revenue
WEALTH MANAGEMENT REVENUE (Rs. Mn) 48% 117 5% 40 38 27 15 Q1 Q1 FY25 Q4 FY24 Q1 FY24 12M FY24 FY 25
Slide 16: Others Including Treasury Revenue
OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) 14% 1,050 44% 282 182 157 16 Q1 Q1 FY25 Q4 FY24 Q1 FY24 12M FY24 FY 25
Slide 17: Average Daily Turnover
AVERAGE DAILY TURNOVER Equity Market ADTO (in bn) Derivative Market ADTO (in bn) 1,318 4,67,910 4,56,677 1,190 3,36,088 871 3,12,162 834 2,51,458 613 602 625 2,15,552 570 527 1,60,447 1,31,980 1,08,139 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4FY24 Q1FY25 Q1 FY23 Q2 FY23 Q3 FY23 Q4 F
Slide 18: Customer Assets
CUSTOMER ASSETS (Rs. Mn) Total Assets Wealth Assets DP/Broking Assets 4,13,187 4,59,764 35,846 3,34,647 31,772 3,75,443 28,930 2,89,855 26,565 26,453 3,27,372 2,41,080 22,694 23,478 22,418 2,75,856 2,05,949 20,140 1,84,906 1,91,722 2,40,059 1,77,371 2,14,506 2,21,184 2,06,326 1,58,615 1,85,966 Q1 FY
Slide 19: Financial Performance
FINANCIAL PERFORMANCE 19 Q1 FY 25
Slide 20: Key Highlights: Consolidated Financials
KEY HIGHLIGHTS : CONSOLIDATED FINANCIALS Revenues Profit Before Tax Profit After Tax EPS BVPS (Rs. mn) (Rs. mn) (Rs. mn) (Rs.) (Rs.) Q1 FY25 891 171 139 5.63 103 10% 3% 31% 31% 6% Q4 FY24 994 166 106 4.29 98 Q1 FY25 891 171 139 5.63 103 58% 1,215% 3,375% 3,921% 21% Q1 FY24 563 13 4 0.14 85 12M FY24
Slide 21: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) Particulars Q1 Q4 QoQ% Q1 YoY % 12M FY25 FY24 Change FY24 Change FY24 Revenue Income from Operations 817 902 (9) 488 67 2,846 Other Income 74 92 (20) 75 (1) 325 Total Revenue 891 994 (10) 563 58 3,171 Expenses Employees Benefit Expense 410 472 (13) 293 4
Slide 22: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) Q1 Q4 QoQ% Q1 YoY % 12M FY25 FY24 Change FY24 Change FY24 Particulars Share of Profit/(Loss) of Associates (1) 2 (150) 5 (120) 2 Profit for the Period/Year 139 106 31 4 3,375 324 Other Comprehensive Income (5) - (100) (10) (50) (9) Total Comprehensive In
Slide 23: Consolidated Financials - PAT Mix
CONSOLIDATED FINANCIALS - PAT MIX (Rs. Mn) QoQ% YoY % Q1FY25 Q4 FY24 Change Q1 FY24 Change 12M FY24 a) Capital Markets 135 89 52 (43) 414 245 (Broking, Wealth Management & IB) b) Asset Management (6) - (100) 11 (155) 7 c) Others 10 17 (41) 36 (72) 73 Profit After Tax 139 106 31 4 3,375 325 Other Com
Slide 24: Segment Performance
SEGMENT PERFORMANCE (Rs. Mn) Q1 Q4 QoQ% Q1 YoY % 12M FY25 FY24 Change FY24 Change FY24 Segment Revenue Advisory, Transactional & Other Related Activities 866 985 (12) 543 59 3,115 Financing and Investment Activities 25 9 178 20 25 56 Income from Operations 891 994 (10) 563 58 3,171 Segment Profit Be
Slide 25: Capital Markets
CAPITAL MARKETS (Rs. Mn) Particulars Q1 FY 25 Q4 FY 24 QoQ(%) Q1 FY 24 YoY(%) 12M FY 24 Total Revenue 828.18 889.52 (7) 473.12 (75) 2,834.03 - Fees and Commission Income 672.82 735.71 (9) 331.21 (103) 2,210.89 - Distribution Income 40.29 37.49 7 26.61 (51) 117.34 - Interest Income 20.30 19.71 3 16.4
Slide 26: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET (Rs. Mn) Cash and Cash Equivalents Networth and Leverage 600 3000 0.16 500 0.14 2500 400 0.12 300 2000 0.10 200 1500 0.08 100 0.06 0 1000 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 0.04 500 0.02 0 - Short-Term Rating of Non-Fund-Based Credit Limit Q1 FY24 Q2 FY24 Q3 FY24 Q4 F
Slide 27: Investment Banking
INVESTMENT BANKING 27 Q1 FY 25
Slide 28: Key Highlights
KEY HIGHLIGHTS Merchant Banker Advisor for the for IPO amounting to Preferential INR 5,989 mn Issue amounting to INR 1,700 mn 01 02 28 Q1 FY 25
Slide 29: Asset Management
ASSET MANAGEMENT PMS & AIF vertical (Emkay Investment Managers Ltd.) 29 Q1 FY 25
Slide 30: Q1 FY25 Highlights: Maiden Open-Ended AIF
Q1 FY25 HIGHLIGHTS We launched our maiden open-ended AIF The investment objective of Emkay Capital Builder AIF is to Emkay Capital Builder PMS, our existing portfolio management service, generate long-term capital appreciation for investors from a aligns closely with the AIF offering. The average ma
Slide 31: Q1 FY25 Highlights: New Leadership
Q1 FY25 HIGHLIGHTS New Leadership Arvind Tankkar Chief Operating Officer (COO) Emkay Investment Managers Ltd Arvind strengthened the team at EIML by joining as its Chief Operating Officer during the quarter. He is a qualified Chartered Accountant from the Institute of Chartered Accountants of India.
Slide 32: Wealth Management
WEALTH MANAGEMENT Your success is our success
Slide 33: Wealth Management
WEALTH MANAGEMENT Managing INR 35,846 million under MF Advisory & Distribution Undertakes regular and stringent monitoring of portfolios Offers facility to view portfolio online on the website and mobile app The product delivery is through both Advisory as well as distribution mechanisms Research Re
Slide 34: Key Highlights
KEY HIGHLIGHTS AUD GROWTH (Rs. Mn) Branches No. of AUD AUD 40,000 35,846 Transactions 35,000 31,772 28,930 30,000 26,565 26,453 23,478 22,418 78% 25,000 21,367 20,981 20,140 22,694 20,000 15,000 10,000 11 INR 35,846 Mn 5,000 YOY - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY22 FY22 FY23 FY23 FY23 FY23 FY24 F
Slide 35: Institutional Equities
INSTITUTIONAL EQUITIES 35 Q1 FY 25
Slide 36: Channel Check Conference
CONFERENCES IN Q1 Emkay Institutional Equities organized Channel Check Conference which was attended by Distributors/Dealers/Expert 18 245 15 Total Group One-on-One session Clients 59 90 12 78 Funds Individuals Fund Manager Analyst 36 Q1 FY 25
Slide 37: Corporate Access
CORPORATE ACCESS During Q1 FY25 the Institutional Equities team held 10 48 9 roadshows expert and Group Calls/ client calls Event/ Conference 37 Q1 FY 25
Slide 38: Technology Edge
TECHNOLOGY EDGE Your success is our success
Slide 39: Technology Innovation, Improving Business Efficiency
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 “Busin
Slide 40: 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 41: 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 42: 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 43: Achievements in Q1 FY25
Achievements in Q1 FY 25 • Implementation & go-live of New Trading setup in BSE Colocation. • Implementation & go-live of New Algo Trading platform in NSE Colocation. • Migration of Email Services and Desktop Office Applications to Microsoft 365 Platform. • Implementation of new software utilities t
Slide 44: Human Resources
HUMAN RESOURCES Your success is our success
Slide 45: Human Resource Initiatives: Employee Wellness & Engagement
HUMAN RESOURCE INITIATIVES Q1 FY25 AT A GLANCE Employee wellness & engagement Yoga Sessions and Wellness Programs Organized for Employees 45 Q1 FY 25
Slide 46: Human Resource Initiatives: Talent Acquisition & Development
HUMAN RESOURCE INITIATIVES Q1 FY25 AT A GLANCE Talent acquisition & development • We continued to recruit from reputable business schools to build a dynamic and youthful workforce, grooming them as future leaders of Emkay. • Developed young talent through customized training programs designed to enh
Slide 47: Human Resource Initiatives: Continuous Activities
HUMAN RESOURCE INITIATIVES Q1 FY25 AT A GLANCE Continuous activities to aid employees Ease of banking camps Health Insurance cover to address Doubled for employee issues Emkay employees & Family Annual Performance Enhanced Tax Efficient appraisal completed Compensation for FY24 designed and implemen
Slide 48: Corporate Overview
CORPORATE OVERVIEW 48 Q1 FY 25
Slide 49: 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 50: 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 51: 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 52: 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 53: 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 54: The Board
THE BOARD Mr. Sushil Kumar Saboo Mr. Ravikumar Krishnamurthi Chairman Independent Director Group Advisor (Chairman’s Office) for Aditya Birla A solicitor in the Mumbai High Court and the Supreme Court of England; Group, one of the premier business groups of India. retired partner of Mulla & Mulla Cr
Slide 55: Shareholding Summary
SHAREHOLDING SUMMARY 74.27% Promoters & Promoter Group 25.73% General Public 55 Q1 FY 25
Slide 56: Recent Awards
RECENT AWARDS Best Technology Emkay Emerging Stars Fund, Team (Wealth our Category III AIF was Management) at awarded for the 2nd Annual Best post-Covid AIF NBFC and FinTech performance across all Excellence Awards categories (basis 6 months 2023 by Quantic Absolute Returns) Business Media by PMS AI
Slide 57: 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. 57 Q1 FY 25
Emkay Global Financial Services — Q1 FY25 Earnings Presentation on 6ix