Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — Q3 FY25 Earnings Presentation
62 slides from Emkay Global Financial Services's earnings presentation, Jan 30, 2025
Slide 1: Exchange filing cover letter
Date: 30th January, 2025 To, To, Listing Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex P. J. Tower, Dalal Street, Bandra (East), Mumbai-400 051 Mumbai 400 001 NSE Symbol: EMKAY BSE Scrip Code:532737 Dear Sir/Madam Sub: Investo
Slide 2: Investor Presentation Q3 FY25
INVESTOR PRESENTATION Q3 1 FY 25
Slide 3: 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 4: Letter to investors
Dear Investors, Season’s Greetings! As the first month of 2025 draws to a close, we hope this year has started on a promising note for you. Q3 FY25 was a challenging quarter, marked by sluggish Q2 earnings growth, slowing GDP, and heightened market volatility. Regulatory changes like an increase in
Slide 5: Letter to investors (continued)
In Asset Management, 5 out of our 6 strategies outperformed their respective benchmarks, underscoring our commitment to delivering consistent value to our clients. Technological advancements have been a cornerstone of our growth this quarter, with significant upgrades to our accounting systems, the
Slide 6: Investor Insights: Addressing Your Key Questions
Investor Insights: Addressing Your Key Questions 5 Q3 FY 25
Slide 7: Group Performance
Group Performance How did the macroeconomic environment impact Emkay’s business performance this quarter? The Q2 FY25 earnings season was relatively muted, with high sectoral divergence. Topline growth for the Emkay universe was modest at 3% YoY, while PAT remained flat. India’s real GDP growth slow
Slide 8: Capital Markets
Capital Markets What has been the key focus of the ECM team in Q3, and how has the deal pipeline evolved since Q2? The ECM team’s primary focus in Q3 has been on executing the existing deal pipeline while simultaneously strengthening the future pipeline. Notably, we have successfully secured several
Slide 9: Capital Markets
Capital Markets What progress has been made in enhancing Emkay's research capabilities, and how is it contributing to client engagement and retention? Emkay continues to strengthen its research franchise by expanding company coverage, with 23 new companies added during the quarter. Our efforts to en
Slide 10: Asset Management
Asset Management What has been the AUM growth trajectory in Q3, and which schemes have been the strongest contributors? Assets under management (AUM) and advisory surpassed INR 15,700 million. PMS+AIF AUMs grew 48% YoY to INR 12,683 million. Emkay Capital Builder, our flagship portfolio management s
Slide 11: Asset Management
Asset Management Are any new strategies or funds in the pipeline to capitalize on emerging market opportunities? We are in the process of launching two new products under PMS & AIF (Category 3): 1.Emkay SMID Cap Growth Engine PMS/Fund 2.Emkay Large Cap Focused PMS Emkay SMID Cap Growth Engine PMS/Fu
Slide 12: Asset Management
Asset Management How has the initiative to establish a presence in the Middle East progressed? We achieved a significant milestone by obtaining the branch license on December 31, 2024. Further updates on the progress and engagement with offshore investors will be shared in the next quarter. 11 Q3 FY
Slide 13: Wealth Management
Wealth Management What has been the growth in Wealth AUM and revenues this quarter, and how do you plan to sustain this momentum in the future? During the review period, our overall Wealth AUM grew by 51% YoY, reaching INR 1,95,247 million. To sustain this momentum, we remain focused on deepening cl
Slide 14: Wealth Management
Wealth Management What factors contributed to the revenue performance of the non-institutional equities business in Q3, and how has market volatility impacted trading volumes? The revenue performance of the non-institutional equities business in Q3 was significantly affected by high intraday volatil
Slide 15: Business Performance
BUSINESS PERFORMANCE 14 Q3 FY 25
Slide 16: Key Performance Indicators: Q3 FY25 at a Glance
KEY PERFORMANCE INDICATORS EMKAY: Q3 FY25 AT A GLANCE (Rs. million) 2,07,929 1,95,247 12,683 839 Total Assets Wealth Assets PMS & AIF AUM Revenue 51%YoY 51 %YoY 48%YoY 1% YoY 113 86 515 41,000 PBT PAT Total Employees Client Base 23% YoY 30% YoY As on 31.12.2024 As on 31.12.2024 7,885 2,893 24% 1,79,
Slide 17: Key Highlights of Q3 FY25
KEY HIGHLIGHTS OF Q3 FY25 Capital Markets ECM Deals ESOP Consolidated • 1 block worth INR 1,780 million • Bank of Maharashtra – Merchant Significant ESOP Exercise: Revenues executed 1,79,012 ESOPs aggregating to grew by Banker to the QIP for INR 35,000 mn • 3 ECM transactions worth INR • Senco Gold
Slide 18: Revenue Mix
REVENUE MIX (Rs. Mn) 2,853 Capital Markets Asset Management 3,000 Wealth Management Others including Treasury 395 2,500 2,177 777 2,000 557 144 1,500 1,148 834 539 839 158 97 1,000 112 342 219 1,537 186 60 500 46 196 984 35 495 588 384 - Q3 FY25 Q2 FY25 Q3 FY24 9M FY25 9M FY24 17 Q3 FY 25
Slide 19: Capital Market Revenue
CAPITAL MARKET REVENUE (Rs. Mn) 56% 29% 16% 1,537 984 588 495 384 Q3 Q3 FY25 Q2 FY25 Q3 FY24 9M FY25 9M FY24 18 FY 25
Slide 20: Asset Management Revenue
ASSET MANAGEMENT REVENUE (Rs. Mn) 48% 30% 23% 144 97 60 46 35 19 Q3 FY25 Q2 FY25 Q3 FY24 9M FY25 9M FY24 Q3 FY 25
Slide 21: Wealth Management Revenue
WEALTH MANAGEMENT REVENUE (Rs. Mn) 44% 5% 46% 646 Transactional Advisory 459 298 139 171 131 80 47 44 25 Q3 FY25 Q2 FY25 Q3 FY24 9M FY25 9M FY24 20 Q3 FY 25
Slide 22: Others Including Treasury Revenue
OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) 29% 49% 557 29% 395 219 158 112 21 Q3 Q3 FY25 Q2 FY25 Q3 FY24 9M FY25 9M FY24 FY 25
Slide 23: Average Daily Turnover
AVERAGE DAILY TURNOVER Equity Market ADTO (in bn) Derivative Market ADTO (in bn) 4,67,910 4,56,677 1,388 4,19,604 1,318 3,97,285 1,190 1,109 3,36,088 3,12,162 834 871 Q2 FY24 Q3 FY24 Q4FY24 Q1FY25 Q2 FY25 Q3FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2FY25 Q3 FY25 Emkay's ADTO (in bn) 7,790 6,036 6,090 5,
Slide 24: Customer Assets
CUSTOMER ASSETS (Rs. Mn) Total Assets Wealth Assets 2,13,285 2,07,929 200797 1,95,247 1,56,730 1,44,138 145998 1,37,465 128878 135114 1,22,846 114523 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 PMS AUM AIF AUM 7,569 7,490 6,612 5,193 4,919 5,351 4,
Slide 25: Financial Performance
FINANCIAL PERFORMANCE 24 Q3 FY 25
Slide 26: 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.) Q3 FY25 839 113 86 3.45 116 27% 64% 67% 67% 3% Q2 FY25 1,148 314 259 10.49 112 Q3 FY25 839 113 86 3.45 116 1% 23% 30% 31% 24% Q3 FY24 834 147 122 4.97 93 9M F
Slide 27: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) QoQ% YoY % % Particulars (Rs. in mn) Q3FY25 Q2 FY25 Change Q3 FY24 Change 9M FY25 9M FY24 Change Revenue Income from Operations 765 1,080 (29) 752 2 2,636 1,944 36 Other Income 74 68 9 82 (10) 217 233 (7) Total Revenue 839 1,148 (27) 834 1 2,853 2,177 31
Slide 28: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) QoQ% YoY % % Q3FY25 Q2 FY25 Change Q3 FY24 Change 9M FY25 9M FY24 Change Particulars (Rs. in mn) Share of Profit/(Loss) of Associates (2) 1 (300) (1) 100 (2) 1 (300) Profit for the Period/Year 86 259 (67) 122 (30) 483 219 121 Other Comprehensive Income (
Slide 29: Segment Performance
SEGMENT PERFORMANCE (Rs. Mn) QoQ% YoY % % Q3FY25 Q2 FY25 Change Q3 FY24 Change 9M FY25 9M FY24 Change Segment Revenue Advisory, Transactional & Other Related Activities 829 1,128 (27) 820 1 2,782 2,130 31 Financing and Investment Activities 10 20 (50) 14 (29) 71 47 51 Income from Operations 839 1,14
Slide 30: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET (Rs. Mn) Networth and Leverage Cash and Cash Equivalents 3,500.00 0.16 600.00 500.00 3,000.00 0.14 400.00 0.12 2,500.00 300.00 0.10 2,000.00 200.00 0.08 100.00 1,500.00 0.06 - Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 1,000.00 0.04 Short-Term Rating of Non-Convertibl
Slide 31: Capital Markets
CAPITAL MARKETS 30 Q3 FY 25
Slide 32: Key Highlights
KEY HIGHLIGHTS 3 ECM transactions 10 9 worth INR 42,920.55 million Group calls/Events Roadshows executed /Conferences New Mandates Secured: 46 11 3 QIPs, 1 IPO, 2 Private Equity Corporate & Industry Expert Client Calls Reports Released Projected revenue from mandates secured, with delivery expected
Slide 33: ECM Transactions in Q3
ECM TRANSACTIONS IN Q3 01 02 03 Merchant Banker to Merchant Banker to Merchant Banker to the QIP for the QIP for the QIP for INR 35000 mn INR 4590 mn INR 3330.55 mn 01 32 Q3 FY 25
Slide 34: Conferences in Q3: Emerging Midcap Conference 2024
CONFERENCES IN Q3 Emkay Institutional Equities organized Emerging Midcap Conference 2024 which was attended by Companies Clients 27 590 36 124 252 Total Group One-on-One Total Individuals Meetings Funds Institutional Clients 71 165 21 48 96 Funds Individuals Director/CIO/ Fund Analyst HOE/HoR Manage
Slide 35: Conferences in Q3: FinShift Conference 2024
CONFERENCES IN Q3 Emkay Institutional Equities organized FinShift Conference 2024 which was attended by 11 88 114 C o m p a ni e s Funds Individuals 14 81 14 19 Fund Analysts Fund Director/MD/ Managers Managers CEO/Partner/ CIO/HoE 34 Q3 FY 25
Slide 36: Conferences in Q3
CONFERENCES IN Q3 35 Q3 FY 25
Slide 37: Some Industry Reports Released
SOME INDUSTRY REPORTS RELEASED 36 Q3 FY 25
Slide 38: Asset Management
ASSET MANAGEMENT PMS & AIF vertical (Emkay Investment Managers Ltd.) 37 Q3 FY 25
Slide 39: Key Highlights
KEY HIGHLIGHTS New virtual branch office in Dubai Total Number of Strategies Outperforming number of that outperformed Strategies basis Strategies Benchmark AUM (%) 6 5 76.7% 38 Q3 FY 25
Slide 40: Performance
PERFORMANCE Emkay Capital Builder 1M 3M 6M 1Y 2Y 3Y 5Y Since Inception Emkay Capital Builder - TWRR -1.5 -1.6 9.4 26.2 27.6 21.1 20.9 17.6 BSE 500 TRI -1.5 -7.8 -0.7 15.8 21.1 15.4 19.1 16.1 Nifty 50 TRI -2.0 -8.2 -1.1 10.1 15.6 12.2 15.5 14.3 Note: Performance as on 31.12.2024 AUM of Capital Builde
Slide 41: Wealth Management
WEALTH MANAGEMENT 40 Q3 FY 25
Slide 42: Wealth Management
WEALTH MANAGEMENT Wealth AUMs grew 51% YoY to INR 1,95,247 million vis-à-vis INR 1,28,878 million Advisory revenue grew by 88% YoY to INR 47 million Transactional revenue degrew by 19% YoY to INR 139 million Emkay Wealth undertakes regular and stringent monitoring of portfolios Research Reports • Na
Slide 43: Achievements in Q3 FY25
Achievements in Q3 FY 25 • Launched a comprehensive Clearing Offering tailored to serve all types of clients effectively. • Accelerated progress on the Low Latency Offering project to ensure timely delivery. • Conducted internal sales brainstorming sessions, resulting in an upgraded sales pitch to e
Slide 44: Key Highlights
KEY HIGHLIGHTS AUM GROWTH (Rs. Mn) Branches No. of Relationship Managers 2,50,000 2,00,797 1,95,247 60+ 2,00,000 1,45,998 1,50,000 1,28,878 1,35,114 1,14,523 1,00,000 19 50,000 - Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 No. of Clients Revenue (Q2 FY25) Assets 38,500 38,040 Direct Equity 80% 3
Slide 45: Technology Edge: Improving Business Efficiency
TECHNOLOGY EDGE Improving Business Efficiency 44 Q3 FY 25
Slide 46: 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 47: 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 48: 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 49: Achievements in Q3 FY25
Achievements in Q3 FY 25 Upgrade the accounting Migration of critical/EOL system to the latest Windows servers to the version with the new latest OS version features Migration of critical/EOL Upgraded the disk Implemented new LINUX servers from storage as per the trading platforms within CentOS to s
Slide 50: Human Resources
HUMAN RESOURCES 49 Q3 FY 25
Slide 51: Human Resource Initiatives Q3 FY25 at a Glance
HUMAN RESOURCE INITIATIVES Q3 FY25 AT A GLANCE Launched Rewards and Recognition Program for all employees. Strengthened our talent pool Implemented training programs by recruiting top-tier talent for employees, focusing on from reputed B-schools and enhancing technical expertise, experienced profess
Slide 52: Human Resource: ESOPs
HUMAN RESOURCE ESOPs 1,79,012 ESOPs aggregating to 0.72% of the outstanding equity of the company were exercised by employees in Q3, reflecting their strong belief in the company's long-term growth and value creation. This milestone highlights employee confidence and alignment with organizational su
Slide 53: Corporate Overview
CORPORATE OVERVIEW 52 Q3 FY 25
Slide 54: 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 55: 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 56: 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 57: 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 58: 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 59: 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. Mr. Krishna Kumar Karwa Dr. Bharat Kumar Singh Managing Director In
Slide 60: Shareholding Summary
SHAREHOLDING SUMMARY 73.37% Promoters & Promoter Group 26.63% General Public 59 Q3 FY 25
Slide 61: 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 62: 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. 61 Q3 FY 25
Emkay Global Financial Services — Q3 FY25 Earnings Presentation on 6ix