Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — Q1 FY23 Earnings Presentation
44 slides from Emkay Global Financial Services's earnings presentation, Aug 8, 2022
Slide 1: Exchange cover letter for investor presentation
Your success is our success 08.08.2022 To, To, Listing Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza P. J. Tower, Dalai Street, Bandra Kurla Complex Mumbai- 400 001 Bandra (East), Mumbai- 400 051 Scrip Code: EMKAY Scrip Code: 532737 Dear Sir, Sub:
Slide 2: Investor Presentation Q1 FY23
1 INVESTOR Q1 FY 23 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 Q1 FY23
3 BUSINESS PERFORMANCE Q1 FY 23 Q1 FY23
Slide 5: Key Performance Indicators: Q1 FY23 at a Glance
4 KEY PERFORMANCE INDICATORS EMKAY: Q1 FY23 AT A GLANCE 1,85,974 16,638 7,211 1,62,125 Total Assets Wealth Assets PMS & AIF AUM DP/Broking Assets (in million) (in million) (in million) (in million) 21%YoY Growth 2%YoY Growth 4%YoY D-growth 25%YoY Growth 534 74 46 43 Revenue PBT PAT Total Comprehensi
Slide 6: Key Highlights of Q1 FY23
5 KEY HIGHLIGHTS OF Q1 FY23 Consolidated revenues Consolidated PAT Electric Vehicle Conference 2.0 Investment Banking increased by increased by organized in May 2022 by the IE team was attended by • INR 4273 mn IPO of Ethos Ltd (including Pre IPO) 1% QoQ to Rs. 534 mn 200% QoQ to Rs. 46 mn • Over 70
Slide 7: Revenue Mix
6 REVENUE MIX (Rs. Mn) 3,000 Broking & Allied Services Asset Management Wealth Management Others including Treasury 2,500 1,125 2,000 75 1,500 141 Q1 FY 23 1,000 1,402 500 131 155 171 22 21 14 40 44 32 309 337 330 - Q1 FY 23 Q4 FY 22 Q1 FY 22 12M FY 22
Slide 8: Broking Revenue
7 BROKING REVENUE (Rs. Mn) In the first quarter, revenue from 7% broking and 1,402 allied services fell 8% 8% 7% YoY QoQ Q1 FY 23 to 337 Rs.309 309 330 7% Q1 FY 23 Q4 FY 22 Q1 FY 22 12M FY 22 mn YoY
Slide 9: Asset Management Revenue
8 ASSET MANAGEMENT REVENUE (Rs. Mn) In the first quarter, revenue from 27% the asset 141 management vertical fell 19% 27% YoY 19% QoQ Q1 FY 23 40 44 to Rs.32 32 27% Q1 FY 23 Q4 FY 22 Q1 FY 22 12M FY 22 mn YoY
Slide 10: Wealth Management Revenue
9 WEALTH MANAGEMENT REVENUE (Rs. Mn) In the first quarter, revenue from 61% the wealth 75 management vertical grew 8% 8% 61% YoY QoQ Q1 FY 23 22 21 to Rs.22 14 61% YoY Q1 FY 23 Q4 FY 22 Q1 FY 22 12M FY 22 mn
Slide 11: Others Including Treasury Revenue
10 OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) In the first quarter, revenue from 10% others 1,125 including treasury grew 30% 30% 10% YoY QoQ Q1 FY 23 to 171 131 155 Rs.171 10% Q1 FY 23 Q4 FY 22 Q1 FY 22 12M FY 22 mn YoY
Slide 12: Average Daily Turnover
11 AVERAGE DAILY TURNOVER Equity Market ADTO (in bn) Derivative Market ADTO (in bn) 805 1,08,139 787 722 708 95,158 680 621 641 613 589 71,931 59,958 45,357 41,857 28,481 19,821 13,936 Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 Q1 FY 22 Q2 FY 22 Q3 FY 22 Q4 FY 22 Q1 FY23 Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21
Slide 13: Customer Assets
12 CUSTOMER ASSETS (Rs. in Mn) TOTAL ASSETS WEALTH ASSETS DP/BROKING ASSETS 1,68,137 17,954 17,800 1,62,126 1,93,075 17,199 17,237 16,638 1,48,639 1,53,266 1,85,974 16,224 15,924 16,362 1,74,816 1,79,398 1,29,738 1,53,647 1,20,378 1,43,318 1,11,525 1,34,349 11,601 90,459 86,466 1,06,970 1,09,912 Q1
Slide 14: Financial Performance Q1 FY23
13 FINANCIAL PERFORMANCE Q1 FY 23 Q1 FY23
Slide 15: Key Highlights: Consolidated Financials
14 KEY HIGHLIGHTS : CONSOLIDATED FINANCIALS Revenues Profit Before Tax Profit After Tax EPS BVPS (Rs. in mn) (Rs. in mn) (Rs. in mn) (Rs.) (Rs.) Q1 FY23 534 74 46 1.86 83 1% 232% 200% 198% 2% Q4 FY22 529 (56) (46) (1.89) 81 Q1 FY23 534 74 46 1.86 83 Q1 FY 23 2% 43% 53% 53% 16% Q1 FY22 543 129 98 3.9
Slide 16: Consolidated Profit & Loss Statement
15 CONSOLIDATED PROFIT & LOSS STATEMENT QoQ% YoY % Particulars (Rs. in mn) Q1FY23 Q4 FY22 Change Q1 FY22 Change 12M FY22 Revenue Income from Operations 520 521 - 540 (4) 2,712 Other Income 14 8 75 3 367 31 Total Revenue 534 529 1 543 (2) 2,743 Expenses Employees Benefit Expense 262 285 (8) 254 3 1,0
Slide 17: Consolidated Profit & Loss Statement (continued)
16 CONSOLIDATED PROFIT & LOSS STATEMENT QoQ% YoY % Particulars (Rs. in mn) Q1FY23 Q4 FY22 Change Q1 FY22 Change 12M FY22 Share of Profit/(Loss) of Associates 2 (4) 150 (2) 200 (11) Profit/(Loss) for the Period/Year 46 (46) 200 98 (53) 338 Other Comprehensive Income (3) (4) (25) (2) 50 (5) Total Comp
Slide 18: Consolidated Financials - PAT Mix
17 CONSOLIDATED FINANCIALS - PAT MIX (in Mn) Q1 Q4 Q1 12M QoQ (%) YoY (%) FY 23 FY 22 FY 22 FY 22 a) Capital Markets (Broking, Distribution & 34 (13) 362 63 (46) 307 IB) b) Asset Management 1 6 (83) 10 (90) 26 c) Others 11 (39) 128 25 (56) 5 Q1 FY 23 Profit/(Loss) After Tax 46 (46) 200 98 (53) 338 O
Slide 19: Segment Performance
18 SEGMENT PERFORMANCE (Rs. Mn) Q1 Q4 Q1 12M Q-o-Q% Y-o-Y% FY 23 FY 22 FY 22 FY 22 Segment Revenue Advisory, Transactional & Other 519 499 501 4 4 2,616 Related Activities Financing and Investment 14 30 42 (53) (67) 127 Activities 533 529 543 1 (2) 2,743 Income from Operations Q1 FY 23 Segment Profi
Slide 20: Institutional Equities
19 INSTITUTIONAL Q1 FY 23 EQUITIES
Slide 21: Conferences in Q1
20 CONFERENCES IN Q1 Emkay Institutional Equities organized its Electric Vehicle Conference 2.0 on 23rd- 24th May, which was attended by 11 70 100 Q1 FY 23 companies funds individual participants and the virtual 2-day conference resulted in nearly 280 meetings
Slide 22: Corporate Access
21 CORPORATE ACCESS During Q1FY23 the Institutional Equities team held Q1 FY 23 8 63 roadshows expert and client calls
Slide 23: Asset Management
22 ASSET MANAGEMENT Q1 FY 23 PMS & AIF vertical (Emkay Investment Managers Ltd.)
Slide 24: Q1FY22 Highlights
23 Q1FY22 HIGHLIGHTS 01 02 03 New Strategy Award 2022 Digital Launched On-boarding Q1 FY 23 EIML has successfully EIML bagged the launched a new product EIML has made the award for the most customer on-boarding – ENVI (Emkay New Vitalized India) which innovative company experience more focuses on in
Slide 25: Investment Banking
24 INVESTMENT Q1 FY 23 BANKING
Slide 26: Key Highlights
25 KEY HIGHLIGHTS INR 4273 mn Series E Private INR 838 mn Rights IPO of Ethos Equity Issue of Ltd (including investment in Bhagiradha Pre IPO) Awfis Chemicals Q1 FY 23 01 02 03
Slide 27: Wealth Management
26 WEALTH Q1 FY 23 MANAGEMENT
Slide 28: Wealth Management
27 WEALTH MANAGEMENT Undertakes regular and stringent monitoring of portfolios Managing INR.19,032 mn under MF Advisory & Distribution In less than 3 years Emkay Wealth emerged from a start-up wealth business to operating in 9 locations Tied up with Stockal to provide clients the option of investing
Slide 29: Key Highlights
28 KEY HIGHLIGHTS AUD GROWTH Branches No. of AUD 19,028 18,496 18,304 18,735 20,696 20,489 19,816 19032 Clients 13,127 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 10 1,604 19,032 Mn No of Clients ASSETS Assets REVENUE Q1 FY 23 1604 1529 1350 Direct Equity 12% 1076 GSEC Bo
Slide 30: Technology Edge
29 TECHNOLOGY Q1 FY 23 EDGE
Slide 31: Technology Innovation, Improving Business Efficiency
30 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 32: Infrastructure & Security Aspects
31 INFRASTRUCTURE & SECURITY ASPECTS Strong Network Robust Infrastructure • Ensuring high availability of systems across the • Scaled up & fine tuned hardware for network 01 reliability with continuous improvisations in performance 03 • Setting up a robust & reliable network with multiple network pa
Slide 33: Technology for Business
32 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 offer • Client Relation with branches, business
Slide 34: Digital First Approach
33 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 35: Corporate Overview
34 CORPORATE Q1 FY 23 OVERVIEW
Slide 36: Emkay Promise, Mission & Values
35 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 37: Resilience and Responsibility: Our Differentiators
36 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 38: A Legacy of Over 25 Years
37 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 39: The Journey
38 THE JOURNEY Emkay Insurance Incorporated Brokers Emkay Global Launched Successful Limited Financial Services the launch of Emkay rechristened Pte Ltd. in Commenced Investment Emerging Stars Fund Emkay Wealth Singapore; equity broking Banking Business - Series I, II & III Advisory, Emkay Fincap on
Slide 40: Products & Services
39 PRODUCTS & SERVICES Investments: Asset & Wealth Management: Institutional & 01 Non-Institutional Equities, 02 Risk Profiling, Asset Allocation, Portfolio Review and Management Commodities, Currencies, Fixed Income Products Financial Education: 03 04 Through FinLearn Academy Q1 FY 23 Estate & Succ
Slide 41: The Board
40 THE BOARD Mr. Sushil Kumar Saboo Mr. Krishna Kumar Karwa Chairman Managing Director Group Advisor (Chairman’s Office) for Aditya Birla Group, Promoter & Managing Director of one of the premier business groups of India. EGFSL Mr. Girindrachandra Vasudeo Independent Director A fellow member of the
Slide 42: Shareholding Summary
41 SHAREHOLDING SUMMARY 74.49% Promoters & Promoter Group Q1 FY 23 25.51% General Public
Slide 43: Recent Awards & Recognitions
42 RECENT AWARDS & RECOGNITIONS Emkay Investment Emkay Emerging Stars Fund, Asiamoney Brokers Poll is the Emkay Wealth Q1 FY 23 Managers Ltd. our Category III AIF was largest Asia-focused equity Management recognised awarded as ‘Most awarded for services provider poll. as One of the Top 10 Innovativ
Slide 44: Contact Us
43 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), Q1 FY 23 Mumbai - 400028.
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