Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — FY2023 Earnings Presentation
60 slides from Emkay Global Financial Services's earnings presentation, May 16, 2023
Slide 1: Cover letter to stock exchanges
Embbay' Yor SUCCESS 18 DUr SLIDCESS 16.05.2023 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 Si
Slide 2: 12M FY23 Investor Presentation
1 12M FY 23 INVESTOR 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
3 BUSINESS PERFORMANCE 12M FY 23 Q4 & 12M FY23
Slide 5: Emkay: FY23 at a Glance
4 KEY PERFORMANCE INDICATORS EMKAY: FY23 AT A GLANCE 2,06,039 22,129 6,250 1,77,659 Total Assets Wealth Assets PMS & AIF AUM DP/Broking Assets (in million) (in million) (in million) (in million) For 12M FY23 For 12M FY23 For 12M FY23 For 12M FY23 2,154 125 141 136 12M FY 23 Revenue PBT PAT Total Com
Slide 6: Key Highlights of FY23
5 KEY HIGHLIGHTS OF FY23 Emkay’s total equity volumes increased by ~44% over the last year to Rs. 17,235 billion, while Emkay’s volumes in the options business increased by ~130% to Rs. 12,068 billion. Emkay conducted business with a total of 218 FPIs in the year, and we strongly believe that this n
Slide 7: Key Highlights of FY23
6 KEY HIGHLIGHTS OF FY23 EIML successfully distributed funds to all the investors from its maiden AIFs – Emkay Emerging Stars Fund – I, II & III, which were launched in CY2018. Over the course of five tumultuous years, spanning from 2018 to 2022, we skilfully managed to divest our portfolio investme
Slide 8: Key Highlights of FY23
7 KEY HIGHLIGHTS OF FY23 Emkay received in-principle approval from the Securities And Exchange Board Of India (SEBI) for sponsoring a Mutual Fund. With a strong fund performance track record and an experience of over a decade in PMS and AIF, this is a logical progression to expand the reach of tailo
Slide 9: Key Highlights of FY23
8 KEY HIGHLIGHTS OF FY23 Emkay dedicated the year to various initiatives • Data-centre facilities for DMA / High-Frequency trading clients were rolled out and completed during the year. aimed at enhancing customer experience, with • New In-house Algo Developments were done for the Dealing Desks. a s
Slide 10: Revenue Mix
9 REVENUE MIX (Rs. Mn) 3,000 Broking & Allied Services Asset Management 2738 Wealth Management Others including Treasury 1,120 2,500 2154 628 2,000 75 1,500 123 141 12M FY 23 122 1,000 504 560 524 128 126 38 209 21 500 31 23 40 28 307 300 337 1,281 1,402 - Q4 FY 23 Q3 FY 23 Q4 FY 22 12M FY23 12M FY2
Slide 11: Broking Revenue
10 BROKING REVENUE (Rs. Mn) In the fourth 2% 9% quarter, revenue QoQ from broking and 1,402 9% 1,281 allied services grew by 2% QoQ 9% 12M FY 23 2% YoY and fell 9% YoY 307 300 337 to 9% Q4 Q3 Q4 12M FY23 12M FY22 Rs.307 mn 12M FY 23 FY 23 FY 22 YoY
Slide 12: Asset Management Revenue
11 ASSET MANAGEMENT REVENUE (Rs. Mn) In the fourth 10% 14% quarter, revenue QoQ 23% from asset 141 122 management grew 23% 10% 12M FY 23 10% QoQ and fell YoY by 23% YoY to 40 31 28 Rs.31 mn 14% 12M Q4 FY 23 Q3 FY 23 Q4 FY 22 12M FY23 12M FY22 YoY
Slide 13: Wealth Management Revenue
12 WEALTH MANAGEMENT REVENUE (Rs. Mn) In the fourth 63% 84% 64% QoQ quarter, revenue from wealth 63% 84% management grew YoY 12M FY 23 123 by 63% QoQ and 75 38 increased by 84% 64% 23 21 YoY to Rs.38 mn 12M Q4 Q3 Q4 12M FY23 12M FY22 YoY FY 23 FY 23 FY 22
Slide 14: Others Including Treasury Revenue
13 OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) In the fourth 39% QoQ 44% quarter, revenue 2% from others 39% including treasury 2% YoY 12M FY 23 1120 fell by 39% QoQ and grew 2% YoY to 44% 628 Rs.128 mn 128 209 12M 126 YoY Q4 Q3 Q4 12M FY23 12M FY22 FY 23 FY 23 FY 22
Slide 15: Average Daily Turnover
14 AVERAGE DAILY TURNOVER Equity Market ADTO (in bn) Derivative Market ADTO (in bn) 805 787 2,15,552 722 708 680 621 641 613 602 570 1,60,447 527 1,31,980 1,08,139 95,158 71,931 59,958 41,857 45,357 28,481 19,821 Q2 FY 21Q3 FY 21Q4 FY 21Q1 FY 22Q2 FY 22Q3 FY 22Q4 FY 22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY2
Slide 16: Customer Assets
15 CUSTOMER ASSETS (Rs. in Mn) Total Assets DP/Broking Assets Wealth Assets 2,21,184 22,129 2,14,173 2,06,039 1,93,075 1,95,708 19,492 1,85,974 1,89,022 18,578 1,74,816 1,79,398 1,77,659 17,954 17,800 17,237 16,638 1,68,137 1,62,126 16,362 1,53,647 1,48,639 1,53,266 1,29,738 Q1 FY 22 Q2 FY 22 Q3 FY
Slide 17: Financial Performance
16 FINANCIAL PERFORMANCE 12M FY 23 Q4 & 12M FY23
Slide 18: Key Highlights: Consolidated Financials
17 KEY HIGHLIGHTS : CONSOLIDATED FINANCIALS Revenues Profit Before Tax Profit After Tax EPS BVPS (Rs. in mn) (Rs. in mn) (Rs. in mn) (Rs.) (Rs.) Q4 FY23 504 (73) (54) (2.18) 85 Q3 FY23 560 46 87 3.55 88 Q4 FY22 524 (57) (46) (1.89) 81 12M FY 23 12M FY23 2,154 125 141 5.71 85 12M FY22 2,738 461 338 1
Slide 19: Consolidated Profit & Loss Statement
18 CONSOLIDATED PROFIT & LOSS STATEMENT QoQ% YoY % % Particulars (Rs. in mn) Q4FY23 Q3 FY23 Change Q4 FY22 Change 12M FY23 12M FY22 Change Revenue Income from Operations 421 543 (22) 521 (19) 2,029 2,712 (25) Other Income 83 17 388 3 2,667 125 26 381 Total Revenue 504 560 (10) 524 (4) 2,154 2,738 (2
Slide 20: Consolidated Profit & Loss Statement
19 CONSOLIDATED PROFIT & LOSS STATEMENT QoQ% YoY % % Q4FY23 Q3 FY23 Change Q4 FY22 Change 12M FY23 12M FY22 Change Particulars (Rs. in mn) Share of Profit/(Loss) of Associates (1) 1 200 (3) (67) 1 (11) 109 Profit/(Loss) for the Period/Year (54) 87 (162) (46) 17 141 338 (58) 12M FY 23 Other Comprehen
Slide 21: Consolidated Balance Sheet
20 CONSOLIDATED BALANCE SHEET Particulars (Rs. in mn) As at 31.03.2023 As at 31.03.2022 ASSETS Financial Assets (a) Cash and cash equivalents 294.76 947.33 (b) Bank Balance other than (a) above 3,191.09 3,181.25 (c) Derivative financial instruments - 0.35 (d) Stock in trade (Securities held for trad
Slide 22: Consolidated Balance Sheet
21 CONSOLIDATED BALANCE SHEET Particulars (Rs. in mn) As at 31.03.2023 As at 31.03.2022 LIABILITIES AND EQUITY LIABILITIES Financial Liabilities (a) Trade Payables 1,202.59 1,366.57 (b) Borrowings (other than debt securities) 149.69 109.91 (c) Deposits 103.65 287.81 (d) Lease liabilities 76.32 43.50
Slide 23: Consolidated Financials - PAT Mix
22 CONSOLIDATED FINANCIALS - PAT MIX (in Mn) QoQ% YoY % % Q4FY23 Q3 FY23 Change Q4 FY22 Change 12M FY23 12M FY22 Change a) Capital Markets (37) 72 (151) (13) 185 106 307 (65) (Broking, Distribution & IB) b) Asset Management 4 4 - 6 (33) 18 26 (31) 12M FY 23 c) Others (21) 11 (291) (39) (46) 17 5 240
Slide 24: Segment Performance
23 SEGMENT PERFORMANCE (Rs. Mn) QoQ% YoY % % Q4FY23 Q3 FY23 Change Q4 FY22 Change 12M FY23 12M FY22 Change Segment Revenue Advisory, Transactional & Other 487 542 (10) 494 (1) 2,073 2,608 (21) Related Activities Financing and Investment Activities 17 18 (6) 30 (43) 81 130 (38) Income from Operations
Slide 25: Institutional Equities
24 INSTITUTIONAL 12M FY 23 EQUITIES
Slide 26: Conferences in FY Organized by Emkay Institutional Equities
25 CONFERENCES IN FY 23 Organized by Emkay Institutional Equities 68 102 Funds Individuals 11 372 Meetings MD/ Partner/ 12M FY 23 Director/ CIO/ 14 HOE/ HOR Companies 18 73 FM Analyst
Slide 27: Client and Corporate Meetings
26 32 11 Clients Corporates 12M FY 23 50 35 1*1 Group Meetings Meetings
Slide 28: Meetings
27 96 152 Funds Individuals 16 383 Meetings Distributors/ 12M FY 23 Dealers /Experts 16 FM 5 MD/ Partner/ 131 Director/ CIO Analyst
Slide 29: Emkay Confluence 2022
28 Emkay Institutional Equities organized Emkay Confluence 2022 from 10th- 12th August, which was attended by 132 146 489 12M FY 23 companies funds individual participants and the 3-day conference resulted in nearly 2,300 meetings
Slide 30: Electric Vehicle Conference 2.0
29 Emkay Institutional Equities organized its Electric Vehicle Conference 2.0 on 23rd- 24th May, which was attended by 11 70 100 12M FY 23 companies funds individual participants and the virtual 2-day conference resulted in nearly 280 meetings
Slide 31: Other Highlights
30 OTHER HIGHLIGHTS During FY23 the Institutional Equities team held Transacted a block of nearly 3 mn shares in Advanced Enzymes, approximately 2.75% of the company 12M FY 23 with 41 237 Nalanda India Equity Fund raising their stake in the roadshows expert and company to nearly 9%. client calls
Slide 32: Asset Management
31 ASSET MANAGEMENT 12M FY 23 PMS & AIF vertical (Emkay Investment Managers Ltd.)
Slide 33: Key Highlights
32 KEY HIGHLIGHTS 01 02 03 New Strategy Award 2022 Digital Launched On-boarding 12M FY 23 EIML successfully EIML bagged the EIML made launched a new award for the most the customer product – ENVI on-boarding (Emkay New Vitalized innovative company experience more India) which focuses of the year (BF
Slide 34: Key Highlights
33 KEY HIGHLIGHTS 04 05 06 We successfully distributed We successfully closed On boarded funds to all our investors from fund raising for our Yes Bank as our 12M FY 23 our maiden AIFs – Emkay manufacturing focused distribution partner Emerging Stars Fund – I, II & III, AIF – Emkay Emerging for AIF V
Slide 35: Key Highlights
34 KEY HIGHLIGHTS The strategy outperformed both the completed Nifty 50 & the Nifty 500 over the last 10 decade. delivering 12M FY 23 years 37.8% more returns over Nifty 50 and outperformance of 10% over its benchmark NIFTY 24.1% more returns over 500 in the tenth year Nifty 500
Slide 36: Investment Banking
35 INVESTMENT 12M FY 23 BANKING
Slide 37: Key Highlights
36 KEY HIGHLIGHTS Advisory services Buyback of INR for preferential 300 million In issue for INR 1,129 EClerx Services million in Dynamatic 12M FY 23 Technologies Ltd. 01 02
Slide 38: Key Highlights
37 KEY HIGHLIGHTS INR 980 mn INR 3400 mn PE investment promoter block in Silverpush in Route Mobile 12M FY 23 Limited 03 04
Slide 39: Key Highlights
38 KEY HIGHLIGHTS INR 4,273 mn IPO Series E Private INR 838 mn of Ethos Ltd Equity investment Rights Issue of (including Pre IPO) of INR 800 million Bhagiradha 12M FY 23 in Awfis Chemicals 05 06 07
Slide 40: Commodities & Currency
39 COMMODITIES 12M FY 23 & CURRENCY
Slide 41: Award
40 AWARD Emkay Global received the award for Best Research in the 12M FY 23 Commodity Segment for FY2022, by MCX
Slide 42: Wealth Management
41 WEALTH 12M FY 23 MANAGEMENT
Slide 43: Wealth Management
42 WEALTH MANAGEMENT In less than 4 years Emkay Wealth emerged from a start-up wealth business to operating in 11 locations Managing INR 22,129 mn under MF Advisory & Distribution Undertakes regular and stringent monitoring of portfolios Tied up with Stockal to provide clients the option of investin
Slide 44: Key Highlights
43 KEY HIGHLIGHTS AUD GROWTH (Rs. Mn) Branches No. of AUD 23,000 AUD 22,364 22,129 Clients 22,000 21,382 20,696 20,489 21,000 19,816 20,000 19,032 18,735 19,000 11 18,000 17,000 16,000 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 2,040 22,129 Mn 12M FY 23 Assets REVENUE (12M FY23)
Slide 45: Award
44 AWARD Best Technology Team (Wealth Management) at the 2nd Annual NBFC and FinTech 12M FY 23 Excellence Awards 2023 by Quantic Business Media
Slide 46: Technology Edge
oD ro > Ey, = A inl TECHNOLOGY EDGE
Slide 47: Technology Innovation, Improving Business Efficiency
46 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 12M FY 23 Conversion from “As-a-servi
Slide 48: Infrastructure & Security Aspects
INFRASTRUCTURE & SECURITY ASPECTS 47 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 49: Technology for Business
48 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-time • Multiple trading solutions deployed to offer • Client Relation with branches, busi
Slide 50: Digital First Approach
49 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 51: Corporate Overview
50 CORPORATE 12M FY 23 OVERVIEW
Slide 52: Emkay Promise, Mission & Values
51 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 53: Resilience and Responsibility: Our Differentiators
52 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 54: A Legacy of Over Years
53 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 55: The Journey
54 THE JOURNEY Incorporated Emkay Global Successful Financial Services launch of Emkay Emkay Insurance Pte Ltd. in Commenced Launched Emerging Brokers Singapore; equity the Stars Fund Limited Emkay Fincap broking Investment - Series I, II & III rechristened increased stake on NSE Banking Emkay Wealt
Slide 56: Products & Services
55 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 12M FY 23 Estate & Successio
Slide 57: The Board
56 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 58: Shareholding Summary
57 SHAREHOLDING SUMMARY 74.49% Promoters & Promoter Group 12M FY 23 25.51% General Public
Slide 59: Recent Awards & Recognitions
58 RECENT AWARDS & RECOGNITIONS Best Technology Team Emkay Global (Wealth Management) at received the award the 2nd Annual NBFC and for Best Research FinTech Excellence in the Commodity Awards 2023 by Quantic Segment for Business Media FY2022, by MCX 12M FY 23 Asiamoney Brokers Poll is the largest A
Slide 60: Contact Us
59 CONTACT US Registered Office Tel: +91 22 6612 1212 www.emkayglobal.com 7th Floor, The Ruby, Fax: +91 22 66121299 Senapati Bapat Marg, 12M FY 23 Dadar (W), Mumbai - 400028.
Emkay Global Financial Services — FY2023 Earnings Presentation on 6ix