Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Q3 FY2024 Earnings Presentation
45 slides from Edelweiss Financial Services's earnings presentation, Feb 12, 2024
Slide 1: Exchange filing cover letter: Earnings Update
EW/Sec/2023-24/270 February 12, 2024 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 532922 Symbol: EDELWEISS Dear Sir/Madam, Sub: Earnings Update Please find enclos
Slide 2: Earnings update – Quarter ended Dec 23
Edelweiss Financial Services Limited Earnings update – Quarter ended Dec 23
Slide 3: Contents
Contents 1 Overview for quarter ended Dec 23 3 2 Performance highlights 6 3 Business performance 19 4 Governance & corporate responsibility 37 Please refer to the detailed business update filed for Alternative Asset Management business 2
Slide 4: Overview
Overview Quarter ended Dec 23
Slide 5: Edelweiss at a glance – Quarter ended Dec 23
Edelweiss at a glance – Quarter ended Dec 23 Net Worth Ex-Insurance PAT BVPS INR 6,046 Cr INR 186 Cr INR 45 (FV ₹1) Net Debt Liquidity as a % of Debt INR 13,670 Cr 18% 4
Slide 6: Diversified with seven high-quality businesses
Diversified with seven high-quality businesses Edelweiss Financial Services Ltd (EFSL) Alternative Asset Housing General Mutual Fund NBFC Life Insurance Asset Mgt Reconstruction Finance Insurance Edelweiss Edelweiss Edelweiss Asset ECL Finance Nido Home Zuno General Edelweiss Alternate Asset Reconst
Slide 7: Performance Highlights
Performance Highlights oO Edelweiss Ideas create, values protect
Slide 8: Performance highlights – quarter ended Dec 23
Performance highlights – quarter ended Dec 23 1 Healthy Profitability with an upward trend in key business metrices Ex-Insurance PAT grew by 12% YoY Alternative Asset Management Fee Paying AUM 22% YoY; MF Equity AUM 47% YoY GI Gross Written Premium 70% YoY; LI Gross Premium 12% YoY Retail credit dis
Slide 9: Healthy growth in profitability across businesses
1 Healthy growth in profitability across businesses PAT for nine month ended INR Cr EFSL Alternative Asset Asset Mutual Fund ex-Insurance Management Reconstruction 449 402 136 256 116 32 225 18 Dec 22 Dec 23 Dec 22 Dec 23 Dec 22 Dec 23 Dec 22 Dec 23 12% YoY 18% YoY 83% YoY 14% YoY 8
Slide 10: Earnings distribution across businesses
1 Earnings distribution across businesses INR Cr Quarter Ended Nine Month Ended Business Dec 23 Dec 22 Dec 23 Dec 22 Alternative Asset Management 45 62 136 116 Mutual Fund 9 6 32 18 Asset Reconstruction 95 85 256 225 NBFC 35 36 104 102 Housing Finance 3 4 9 13 General Insurance (23) (25) (93) (99) L
Slide 11: Upward trend in key business metrices (1/2)
1 Upward trend in key business metrices (1/2) Alternative Asset Management AUM at INR 52,100 Cr; Fee paying AUM at INR 29,500 Cr; up 16% YoY up 22% YoY Mutual Fund AUM at INR 1,23,000 Cr; Equity AUM at INR 40,000 Cr; up 23% YoY up 47% YoY Asset Reconstruction Acquired debt assets of INR 1,910 Share
Slide 12: Upward trend in key business metrices (2/2)
1 Upward trend in key business metrices (2/2) General Insurance Gross written premium of Issued ~1.25 lakh new policies INR 254 Cr; up 70% YoY in the quarter; up 12% YoY Life Insurance Claim settlement ratio at 98%; Gross premium of INR 422 Cr; 13m persistency improved YoY to up 12% YoY 77% from 74%
Slide 13: Customer assets grew by 17% YoY
2 Customer assets grew by 17% YoY in INR Cr Customer Alternative Asset Mgt Mutual Fund Assets AUM AUM 2,12,600 1,23,000 52,100 45,000 1,81,500 1,00,000 Dec 22 Dec 23 Dec 22 Dec 23 Dec 22 Dec 23 17% YoY 16% YoY 23% YoY 12
Slide 14: Coupled with strong scale up in customer reach
2 Coupled with strong scale up in customer reach in Lakhs Customer Mutual Fund General Insurance Reach Folios Customers 47 67 13.8 50 31 11.3 Dec 22 Dec 23 Dec 22 Dec 23 Dec 22 Dec 23 33% YoY 22% YoY 50% YoY 13
Slide 15: Driven by innovative product launches
2 Driven by innovative product launches Mutual Fund • Edelweiss Multi Asset Allocation Fund • Edelweiss Multi Cap Fund • Edelweiss Gold ETF • Edelweiss Silver ETF General Insurance • Zuno Driving Quotient • Zuno HealthPlus Policy Life Insurance • Edelweiss Tokio Life Zindagi Protect • Edelweiss Toki
Slide 16: Strong balance sheet with well capitalised businesses
3 Strong balance sheet with well capitalised businesses Businesses Metric Value NBFC Capital Adequacy 39.8% Housing Finance Capital Adequacy 34.8% Asset Reconstruction Capital Adequacy 56.1% Life Insurance Solvency Ratio 187% General Insurance Solvency Ratio 176% 15
Slide 17: Reduced INR 3,350 Cr of Debt YoY
3 Reduced INR 3,350 Cr of Debt YoY Net Debt (INR Cr) INR Cr Business Dec 23 17,020 NBFC 6,075 Housing Finance 1,640 13,670 Alternative Asset Management 430 Asset Reconstruction 2,440 Corporate 8,270 Gross Debt 18,855 (Less) Liquidity 3,455 (Less) Liquid Investment* 1,730 Net Debt 13,670 Dec 22 Dec 2
Slide 18: Cash flow plan
3 Cash flow plan INR Cr Jan 24 to Dec 24 Opening Available Liquidity (A) 3,400 Inflows Expected Inflows 7,600 Fresh borrowings 2,100 Total Inflows (B) 9,700 Outflows Repayments 6,600 Disbursements 3,600 Total Outflows (C) 10,200 Closing Available Liquidity (A+B-C) 2,900 17
Slide 19: Assets in each tenor range adequately cover liabilities
3 Assets in each tenor range adequately cover liabilities INR Cr Assets Liabilities Excess / (Gap) Up to 1 year 13,600 12,000 1,600 1-3 years 10,000 9,500 500 3 years+ 10,700 7,100 3,600 18
Slide 20: Business Performance
Business Performance oO Edelweiss Ideas create, values protect
Slide 21: Alternative Asset Mgt: Business performance snapshot
Alternative Asset Mgt Alternative Asset Mgt: Business performance snapshot Key Metrics for the quarter Business Update AUM (INR Cr) 52,100 • AUM at INR 52,100 Cr, up 16% YoY • Fee Paying AUM at INR 29,500 Cr, up 22% YoY Fee Paying AUM • Infrastructure Yield Plus (IYP) II have raised ~INR 8,000 Cr ti
Slide 22: Alternative Asset Mgt: Financial performance snapshot
Alternative Asset Mgt Alternative Asset Mgt: Financial performance snapshot INR Cr Dec 23 Dec 22 AUM 52,100 45,000 Fee Paying AUM 29,500 24,100 Equity 695 339 Net Revenue 134 118 Opex 79 51 Profit After Tax 45 62 21
Slide 23: Alternative assets overview
Alternative Asset Mgt Alternative assets overview AUM – Strategy wise Fee Paying AUM – Strategy wise AUM – Investor type 25% 40% INR 52,100 Cr 48% INR 29,500 Cr INR 52,100 Cr 52% 60% 75% Credit Real Assets Credit Real Assets Institutional Non Institutional 22
Slide 24: Mutual Fund: Business performance snapshot
Mutual Fund Mutual Fund: Business performance snapshot Key Metrics for the quarter Business Update • AUM grew by 23% YoY to INR 1,23,000 Cr; market share of AUM (INR Cr) 1,23,000 2.39% as on Dec 23 • Equity AUM at INR 40,000 Cr, up 47% YoY Equity AUM • Net inflows of INR 5,300 Cr during the quarter
Slide 25: Mutual Fund: Financial performance snapshot
Mutual Fund Mutual Fund: Financial performance snapshot INR Cr Dec 23 Dec 22 AUM 1,23,000 1,00,000 Equity AUM 40,000 27,200 Equity 234 200 Net Revenue 54 42 Opex 45 36 Profit After Tax 9 6 24
Slide 26: Consistent growth in AUM and customer base
Mutual Fund Consistent growth in AUM and customer base MF Equity AUM (INR Cr) MF Debt AUM (INR Cr) 81,500 40,000 70,900 27,200 52,000 25,600 Dec 21 Dec 22 Dec 23 Dec 21 Dec 22 Dec 23 SIP Book (INR Cr) Active Folios (# in Lakhs) 13.8 200 11.3 149 9.2 123 Dec 21 Dec 22 Dec 23 Dec 21 Dec 22 Dec 23 Grow
Slide 27: Asset Reconstruction: Business performance snapshot
ARC Asset Reconstruction: Business performance snapshot Key Metrics for the quarter Business Update Equity (INR Cr) 3,050 • Recoveries of INR 2,052 Cr for the quarter, of which 11.7% was from retail portfolio AUM (INR Cr) 37,500 • Acquired debt assets of INR 1,910 Cr during the quarter, of which ~40
Slide 28: Asset Reconstruction: Financial performance snapshot
ARC Asset Reconstruction: Financial performance snapshot INR Cr Dec 23 Dec 22 AUM 37,500 36,500 Capital Employed 4,663 5,007 Wholesale assets 3,956 4,305 Retail assets 707 702 Equity 3,050 2,701 Gross Revenue 279 268 Opex 29 29 Profit After Tax 95 86 Edelweiss’ share in PAT 57 51 27
Slide 29: NBFC: Business performance snapshot
NBFC NBFC: Business performance snapshot Key Metrics for the quarter Business Update • Improved traction in co-lending disbursal with Central Bank Equity (INR Cr) 3,665 of India, IDFC First Bank and Standard Chartered Bank o ~80% of disbursal during the quarter under co-lending AUM (INR Cr) 6,950 mo
Slide 30: NBFC: Financial performance snapshot
NBFC NBFC: Financial performance snapshot INR Cr Dec 23 Dec 22 AUM 6,950 10,391 Gross Loan Book 2,307 5,643 Gross Revenue 287 527 Net Revenue 71 260 Opex 79 117 Credit Cost (53) 96 Profit After Tax 35 36 GNPA 2.69% 2.97% NNPA 1.68% 1.91% 29
Slide 31: Wholesale reduction on track
NBFC Wholesale reduction on track ECLF wholesale loan assets (INR Cr) 65% 11,750 4,150 1,650 Dec 21 Dec 23 Dec 25E Expect momentum to continue with planned reduction 30
Slide 32: Housing Finance: Business performance snapshot
Housing Finance Housing Finance: Business performance snapshot Key Metrics for the quarter Business Update • Disbursed INR 300 Cr in the quarter, of which 32% under Equity (INR Cr) 805 co-lending model • Partnership with Standard Chartered Bank and State Bank AUM (INR Cr) 3,810 of India continues to
Slide 33: Housing Finance: Financial performance snapshot
Housing Finance Housing Finance: Financial performance snapshot INR Cr Dec 23 Dec 22 AUM 3,810 4,159 Gross Loan Book 2,954 3,063 Gross Revenue 114 111 Net Revenue 40 37 Opex 34 31 Credit Cost 2 3 Profit After Tax 3 4 GNPA 2.24% 2.45% NNPA 1.61% 1.92% 32
Slide 34: General Insurance: Business performance snapshot
General Insurance General Insurance: Business performance snapshot Key Metrics for the quarter Business Update • Gross direct premium income (GDPI) growth of 73% YoY Equity (INR Cr) 216 for the quarter • Motor segment reported a robust 47% YoY growth in GDPI against industry growth of 10% GWP (INR C
Slide 35: General Insurance: Financial performance snapshot
General Insurance General Insurance: Financial performance snapshot INR Cr Dec 23 Dec 22 Net Premium Income 99 80 Investment Income & Other 57 24 Income Total Income 156 104 Policy benefits & insurance policy 65 80 liability Other expenses 99 64 Profit After Tax (23) (25) 34
Slide 36: Life Insurance: Business performance snapshot
Life Insurance Life Insurance: Business performance snapshot Key Metrics for the quarter Business Update Equity (INR Cr) 556 • Gross premium of INR 422 Cr, up 12% YoY • AUM at INR 7,535 Cr, up 19% YoY Individual APE (INR Cr) 112 • Traditional Par and Non-Par products constitute ~80% of product mix #
Slide 37: Life Insurance: Financial performance snapshot
Life Insurance Life Insurance: Financial performance snapshot INR Cr Dec 23 Dec 22 Net Premium Income 412 368 Investment Income & Other 297 161 Income Total Income 708 529 Policy benefits & insurance policy 559 414 liability Other expenses 200 168 Profit After Tax (51) (53) Edelweiss’ share in PAT (
Slide 38: Governance & Corporate Responsibility
Governance & Corporate Responsibility
Slide 39: 6 Member Board with 3 Independent Directors
6 Member Board with 3 Independent Directors Mr. Ashok Kini Independent Director • Former Managing Director (National Banking Group) State Bank of India • Served as an advisor to the Thorat Committee on Financial Inclusion at RBI • 35 years of banking experience Dr. Ashima Goyal Independent Director
Slide 40: Significant institutional ownership
Significant institutional ownership Above 1% Shareholding Pattern as on Dec 31, 2023 Key Shareholders Percent 1 Pabrai Investment Funds 8.5% Employee Trust 2 TIAA CREF funds 4.2% DIIs, Non 4.8% Promoter Group 3 LIC 2.6% Institutions & Others 4 Vanguard Group 2.4% 32.8% 30.0% 5 Baron Asset Management
Slide 41: Our contribution to building a more sustainable tomorrow
Our contribution to building a more sustainable tomorrow Under the leadership of EdelGive Foundation, we have… Over ~INR 881 Cr mobilized Partnered with over 174 Assisted over 60% of EdelGive’s Ensured long term through commitments high caliber NGOs NGO partners to grow at a CAGR association with av
Slide 42: Our investment in communities
Our investment in communities EdelGive Foundation’s commitment to investing in communities 85 Districts Sustainable Women across 12 States Quality Education Livelihoods Empowerment 20 lakh children impacted 2.48 lakh Individuals trained 2.44 lakh women supported 31,000 schools reached 1,832 watershe
Slide 43: Trusted partner: EdelGive funding partners & networks
Trusted partner: EdelGive funding partners & networks Foundations, Corporates and HNIs partner with Edelgive Platform for their philanthropic allocation 42
Slide 44: Safe Harbour
Safe Harbour DISCLAIMER : This presentation and the discussion may contain certain words or phrases that are forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Financial Services Ltd. or any of its subsidiaries and associate companies (“Ed
Slide 45: Safe Harbour
Safe Harbour Slide 4: Net worth includes MI, investment in CCD by CDPQ of INR 347 Cr, Ex-Insurance PAT is post MI Slide 4,7,8,9: Ex-Insurance PAT is post-MI; Business PATs are pre-MI Slide 4,7,16: Debt includes accrued interest, liabilities on market linked debentures and excludes CBLO, CDPQ CCD and
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