Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — FY2024 Earnings Presentation
66 slides from Emkay Global Financial Services's earnings presentation, May 16, 2024
Slide 1: Cover letter to stock exchanges
Date: 16th May, 2024 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 Sub: Investor Presenta
Slide 2: 12M FY24 Investor Presentation
1 12M FY 24 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 24 Q4 & 12M FY24
Slide 5: Key Performance Indicators
4 KEY PERFORMANCE INDICATORS EMKAY: FY 24 AT A GLANCE (Rs. Mn) 3,75,443 31,772 9,023 3,34,647 Total Assets Wealth Assets PMS & AIF AUM DP/Broking Assets 82%YoY 42%YoY 38%YoY 89%YoY 3,171 445 324 513 12M FY 24 Revenue PBT PAT Total Employees 47% YoY 256% YoY 130% YoY As on 31.03.2024 4,199 2,409 14%
Slide 6: Key Highlights of FY24
5 KEY HIGHLIGHTS OF FY24 Financials: The Consolidated revenue increased by 47% YoY to INR 3,171 million, while consolidated PAT increased by 130% YoY to INR 324 million. IB Transactions: Emkay was the merchant banker to six equity fundraising transactions amounting to Rs. 58,112 million across produ
Slide 7: Key Highlights of FY24
6 KEY HIGHLIGHTS OF FY24 Asset Management Updates: Emkay successfully completed the early distribution of proceeds from the Emkay Emerging Stars Fund – Series IV for its unit holders. Following deductions for all fees and expenses, Emkay achieved an impressive 20% to 25% XIRR (depending on the class
Slide 8: Key Highlights: Information Technology
7 KEY HIGHLIGHTS OF FY 24 I N F O R M AT I O N T E C H N O L O G Y • Backoffice Application was upgraded to process trades in multiples of volumes and faster processing. • Upgraded the network bandwidth for connectivity to Exchanges & Colocation for faster performance. • A new hyper-converge platfor
Slide 9: Key Highlights: Cyber Security
8 KEY HIGHLIGHTS OF FY 24 CYBER SECURITY • Emkay has a robust framework in sync with the • Emkay considers human resources as its first line of defence regulatory guidelines for safeguarding the information against cyber threats and conducts periodic simulation assets of the company. attacks to asse
Slide 10: CSR Initiatives
9 KEY HIGHLIGHTS OF Q4 FY 24 C S R I N I T I AT I V E S 12M FY 24 BOOK DONATION DRIVE: To support the students of the BMC school of Borivali, Emkayites actively participated in a book donation drive. This initiative aimed to provide underprivileged children with access to an array of enriching books
Slide 11: CSR Initiatives
10 KEY HIGHLIGHTS OF Q4 FY 24 C S R I N I T I AT I V E S ORGANISED WEBINAR ‘VEER GATHA - Discover the price of your freedom’ on the occasion of India’s 77th Independence Day. The webinar was organised to support Veer Nari Shakti Resettlement Foundation (VNSRF), an NGO that makes a genuine effort to
Slide 12: Revenue Mix
11 REVENUE MIX (Rs. Mn) 3,500 3,171 Broking & Allied Services Asset Management 3,000 Wealth Management Others including Treasury 2,154 1,050 2,500 2,000 994 117 149 628 834 504 1,500 123 122 12M FY 24 1,000 1,855 282 38 333 1281 51 500 35 25 128 623 31 38 441 307 - Q4 FY24 Q3 FY 24 Q4 FY 23 12M FY24
Slide 13: Broking Revenue
12 BROKING REVENUE (Rs. Mn) 45% 103% 1,855 41% 1,281 12M FY 24 623 441 307 Q4 FY24 Q3 FY24 Q4 FY23 12M FY24 12M FY23
Slide 14: Asset Management Revenue
13 ASSET MANAGEMENT REVENUE (Rs. Mn) 22% 149 64% 122 46% 12M FY 24 51 35 31 Q4 FY24 Q3 FY24 Q4 FY23 12M FY24 12M FY23
Slide 15: Wealth Management Revenue
14 WEALTH MANAGEMENT REVENUE (Rs. Mn) 5% 0% 123 117 52% 12M FY 24 38 38 25 Q4 FY24 Q3 FY24 Q4 FY23 12M FY24 12M FY23
Slide 16: Others Including Treasury Revenue
15 OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) 67% 120% 1,050 15% 628 12M FY 24 333 282 128 Q4 FY24 Q3 FY24 Q4 FY23 12M FY24 12M FY23
Slide 17: Customer Assets
16 CUSTOMER ASSETS (Rs. Mn) Total Assets Wealth Assets DP/Broking Assets 3,34,647 3,75,443 31,772 28,930 2,89,855 3,27,372 26,565 26,453 23,478 2,41,080 2,75,856 22,694 22,418 21,367 20,981 2,05,949 2,40,059 20,140 2,14,506 2,21,184 2,06,326 1,84,906 1,91,722 1,77,371 1,93,204 1,85,966 1,64,522 1,58
Slide 18: Financial Performance
17 FINANCIAL PERFORMANCE 12M FY 24 Q4 & 12M FY24
Slide 19: Key Highlights: Consolidated Financials
18 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 FY 24 994 166 106 4.29 97.54 19% 13% 13% 14% 4.94% Q3 FY24 834 147 122 4.97 92.95 Q4 FY23 504 (73) (54) (2.18) 85.38 97% 327% 296% 297% 14.24% 12M FY 24
Slide 20: Consolidated Profit & Loss Statement
19 CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) QoQ% YoY % % Particulars Q4 FY 24 Q3 FY24 Change Q4 FY23 Change 12M FY24 12M FY23 Change Revenue Income from Operations 902 752 20 421 114 2,846 2,029 40 Other Income 92 82 12 83 11 325 125 160 Total Revenue 994 834 19 504 97 3,171 2,154 47 Expenses E
Slide 21: Consolidated Profit & Loss Statement
20 CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) QoQ% YoY % % Q4 FY 24 Q3 FY24 Change Q4 FY23 Change 12M FY24 12M FY23 Change Particulars Share of Profit/(Loss) of 2 (1) 300 (1) 300 2 1 100 Associates Profit/(Loss) for the 106 122 (13) (54) 296 324 141 130 Period/Year 12M FY 24 Other Comprehensive I
Slide 22: Consolidated Balance Sheet
21 CONSOLIDATED BALANCE SHEET (Rs. Mn) Particulars As at 31.03.2024 As at 31.03.2023 ASSETS Audited Audited Financial Assets (a) Cash and cash equivalents 478.24 294.86 (b) Bank Balance other than (a) above 5,349.80 3,191.09 (c)Stock in trade (Securities held for trading) 12.97 7.15 (d) Trade receiv
Slide 23: Consolidated Balance Sheet
22 CONSOLIDATED BALANCE SHEET (Rs. Mn) Particulars As at 31.03.2024 As at 31.03.2023 LIABILITIES AND EQUITY LIABILITIES Financial Liabilities (a) Derivative financial instruments - - (b) Payables 2,088.95 1,202.59 (c) Borrowings (other than debt securities) 325.54 149.69 (d) Deposits 103.19 103.65 (
Slide 24: Consolidated Financials - PAT Mix
23 CONSOLIDATED FINANCIALS - PAT MIX (Rs. Mn) QoQ% YoY % % Q4 FY 24 Q3 FY24 Change Q4 FY23 Change 12M FY24 12M FY23 Change a) Capital Markets 89 123 (28) (37) 341 245 107 129 (Broking, Distribution & IB) b) Asset Management - (13) 100 4 (100) 7 18 (61) 12M FY 24 c) Others 17 12 42 (21) 181 73 16 356
Slide 25: Segment Performance
24 SEGMENT PERFORMANCE (Rs. Mn) QoQ% YoY % % Q4 FY 24 Q3 FY24 Change Q4 FY23 Change 12M FY24 12M FY23 Change Segment Revenue Advisory, Transactional & Other 820 20 487 102 3,115 2,072 50 Related Activities 985 Financing and Investment Activities 9 14 (36) 17 (47) 56 82 (32) Income from Operations 99
Slide 26: Institutional Equities
25 INSTITUTIONAL 12M FY 24 EQUITIES
Slide 27: Conferences in FY24
26 CONFERENCES IN FY 23 Emkay Institutional Equities organized its Commercial Vehicles Virtual Investor Conference on 22nd- 23rd June, which was attended by 5 67 100 12M FY 24 companies funds individual participants and the virtual 2-day conference resulted in more than 150 meetings
Slide 28: Conferences in FY24
27 CONFERENCES IN FY 23 Emkay Institutional Equities organized Emkay Confluence 2023 which was attended by 12M FY 24 152 142 596 companies funds individual participants 3,256 group meetings
Slide 29: Conferences in FY24
28 CONFERENCES IN FY 23 Emkay Institutional Equities organized Digi Banking Conference 2023 which was attended by 12M FY 24 12 71 107 86 companies funds individual Analysts participants 291 group meetings
Slide 30: Corporate Access
29 CORPORATE ACCESS During FY 24 The Institutional Equities team organised 12M FY 24 43 186 68 roadshows expert and Group Calls/ client calls Event/ Conference
Slide 31: Institutional Research
30 INSTITUTIONAL RESEARCH Best Economist TWIN WINS for Emkay at Madhavi Arora Lead – Economist 12M FY 24 Best Analyst for Energy Sabri Hazarika Senior Research Analyst
Slide 32: FY24 Highlights: New Leadership
31 FY24 HIGHLIGHTS New Leadership Seshadri Sen Head of Research and Strategist 12M FY 24 Seshadri, who joined the Institutional Equities team as the Head of Research and Strategist, is a postgraduate from XLRI Jamshedpur and is a CFA charter holder. In his last assignment, he worked with Alchemy Cap
Slide 33: Asset Management
32 ASSET MANAGEMENT 12M FY 24 PMS & AIF vertical (Emkay Investment Managers Ltd.)
Slide 34: Key Highlights
33 KEY HIGHLIGHTS Celebrating a decade of success In the esteemed presence of clients and distribution partners in Mumbai, Emkay Investment Managers joyfully commemorated the successful completion of more than 10 years in the industry. 12M FY 24
Slide 35: Key Highlights - New Leadership
34 KEY HIGHLIGHTS - New Leadership Manish Sonthalia Nagesh Pai Chief Investment Officer National Sales Head 12M FY 24 Manish assumed the role of Chief Investment Officer at EIML, Nagesh is a seasoned professional with extensive bringing with him over thirty years of extensive expertise in experience
Slide 36: Key Highlights
35 KEY HIGHLIGHTS Successful completion of the early distribution of proceeds from the Emkay Emerging Stars Fund – Series IV for our unit holders. Following deductions for 12M FY 24 all fees and expenses, we achieved an impressive 20% to 25% XIRR (depending on the class of shares) for our investors.
Slide 37: Key Highlights
36 KEY HIGHLIGHTS Emkay Investment Managers' dynamic new office space was meticulously prepared and seamlessly inaugurated during the quarter. The team successfully transitioned 12M FY 24 to the vibrant workspace on January 1, 2024, marking the beginning of an exciting chapter for the company.
Slide 38: Key Highlights
37 KEY HIGHLIGHTS Emkay Emerging Stars Fund - Series VI (AIF Category III), • Both strategies are aimed at empowering investors to capitalize on India’s : a Thematic-Focused Multi-Cap Fund, and Emkay India’s » Rising consumption Golden Decade of Growth, a PMS strategy were launched » Digitisation /
Slide 39: Investment Banking
38 INVESTMENT 12M FY 24 BANKING
Slide 40: Key Highlights
39 KEY HIGHLIGHTS Advisor to Sole Merchant Completion of IPO for Banker for QIP buyback for INR 4,050 mn for INR 2,000 mn INR 550 mn 12M FY 24 01 02 03
Slide 41: Key Highlights
40 KEY HIGHLIGHTS Merchant Banker Merchant Banker Sole Merchant to QIP for to QIP for Banker for QIP for INR 40,000 mn INR 7,500 mn INR 5,000 mn 12M FY 24 04 05 06
Slide 42: Key Highlights
41 KEY HIGHLIGHTS Merchant Banker Merchant Banker Private Equity to IPO for to Open Offer for deal for INR 2511.90 mn INR 60.40 mn INR 1,100 mn 12M FY 24 07 08 09 Heranba Group open offer to Daikafill Chemicals India Limited Advisor to
Slide 43: Wealth Management
42 WEALTH 12M FY 24 MANAGEMENT
Slide 44: Wealth Management
43 WEALTH MANAGEMENT In less than 3 years Emkay Wealth emerged from a start-up wealth business to operating in 10 locations Managing INR 31,772 mn under MF Advisory & Distribution Undertakes regular and stringent monitoring of portfolios Tied up with Stockal to provide clients the option of investin
Slide 45: Key Highlights
44 KEY HIGHLIGHTS AUD GROWTH (Rs. Mn) Branches No. of AUD AUD 31,772 Transactions 35,000 28,930 30,000 26,565 26,453 22,694 23,478 22,418 91% 25,000 21,367 20,981 20,140 20,000 15,000 10 10,000 INR 31,772 Mn 5,000 YOY - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 QQ4 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 FY24 FY24
Slide 46: Azalea Capital
45 AZALEA 12M FY 24 CAPITAL
Slide 47: Key Highlights
46 KEY HIGHLIGHTS Azalea Capital Partners won the ‘Best Sustainable Finance Deal 2023’ award by the FinanceAsia Achievement Awards for South Asia for acting as the 12M FY 24 Sole Arranger and Advisor to Gravita Netherland BV's ESG fundraise of EUR 34 million.
Slide 48: Technology Edge
47 TECHNOLOGY 12M FY 24 EDGE
Slide 49: Technology Innovation, Improving Business Efficiency
48 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 “Bu
Slide 50: Infrastructure & Security Aspects
INFRASTRUCTURE & SECURITY ASPECTS 49 Robust Infrastructure Strong Network • Scaled up & fine-tuned hardware for reliability with • Ensuring high availability of systems with increased continuous improvisations in performance network bandwidth to accommodate the escalating • Hyper-converge platform i
Slide 51: Technology for Business
50 TECHNOLOGY FOR BUSINESS State-of-the-art Electronic Execution Solutions Technology Experience across trading technology across the landscape Sales, Research & Operations • Connectivity for disseminating • Multiple trading solutions deployed • Client Relations are managed via real-time information
Slide 52: Digital First Approach
51 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 penetratio
Slide 53: Human Resources
52 HUMAN 12M FY 24 RESOURCES
Slide 54: Achievements: Employee Wellness & Engagement
53 Achievements E M P L O Y E E W E L L N E S S & E N G A G E M E N T I N I T I AT I V E S Voice of Employees initiative through Emkayites participated with zeal at HRMS platform activated for one-on-one feedback for our existing Tata Mumbai Marathon organized in Continuous feedback providing employ
Slide 55: Achievements: Talent Acquisition & Development
54 Achievements TA L E N T A C Q U I S I T I O N & D E V E L O P M E N T We continue to hire Development of young Training programs Our internal brand from reputed talent through infused through ambassadors 12M FY 24 B-schools and customized training a Learning Management account for almost professi
Slide 56: Achievements: Continuous Activities to Aid Employees
55 Achievements CONTINUOUS ACTIVITIES DURING THE YEAR TO AID EMPLOYEES 12M FY 24 Health camps Ease of banking Mid & Annual organized camps to address performance reviews employee issues
Slide 57: Corporate Overview
56 CORPORATE 12M FY 24 OVERVIEW
Slide 58: Emkay Promise, Mission & Values
57 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 59: Resilience and Responsibility: Our Differentiators
58 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 60: A Legacy of Over Years
59 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 61: The Journey
60 THE JOURNEY Azalea Capital Incorporated Partners commenced Emkay Global operations with Financial Services Emkay Global as a Pte Ltd. in 45% partner Singapore; Commenced Launched the Incorporated Emkay Fincap equity broking Investment Emkay Wealth increased stake on NSE Banking Business Advisory,
Slide 62: Products & Services
61 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 03 04 12M FY 24 Estate & Suc
Slide 63: The Board
62 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 64: Shareholding Summary
63 SHAREHOLDING SUMMARY 74.32% Promoters & Promoter Group 12M FY 24 25.68% General Public
Slide 65: Recent Awards & Recognitions
64 RECENT AWARDS & RECOGNITIONS Azalea Capital Partners won the ‘Best Sustainable Finance Deal 2023’ Award by the FinanceAsia Achievement Awards for South Asia for acting as the Sole Arranger and Advisor to Gravita Netherland BV's ESG fundraise of EUR 34 million. Best Technology Team Emkay Emerging
Slide 66: Contact Us
65 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 24 Dadar (W), Mumbai - 400028.
Emkay Global Financial Services — FY2024 Earnings Presentation on 6ix