Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — Q1 FY24 Earnings Presentation
50 slides from Emkay Global Financial Services's earnings presentation, Aug 10, 2023
Slide 1: Exchange filing cover letter
Your success is our success 10.08.2023 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:I
Slide 2: Investor Presentation Q1 FY24
1 INVESTOR Q1 FY 24 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 FY24
3 BUSINESS PERFORMANCE Q1 FY 24 Q1 FY24
Slide 5: Key Performance Indicators: Emkay Q1 FY24 at a Glance
4 KEY PERFORMANCE INDICATORS EMKAY: Q1 FY24 AT A GLANCE (Rs. million) 2,39,681 26,165 7,167 2,06,349 Total Assets Wealth Assets PMS & AIF AUM DP/Broking Assets 29%YoY 32%YoY 1%YoY 30%YoY 563 13 4 496 Revenue PBT PAT Total Employees Q1 FY 24 6% YoY 82% YoY 91% YoY As on 30.06.2023 1,51,811 1,813 2,09
Slide 6: Key Highlights of Q1 FY24
5 KEY HIGHLIGHTS OF Q1 FY24 Consolidated revenues Consolidated PAT Commercial Vehicle Wealth 12% QoQ 107% QoQ Conference 2.0 Management organized in June 2023 by the IE AUD team was attended by 6% YoY 91% YoY • Over 65 funds • 100 individual participants, 18% QoQ to Rs.563 mn to Rs.4 mn • resulting
Slide 7: Revenue Mix
6 REVENUE MIX (Rs. Mn) 2,500 2,154 Broking & Allied Services Asset Management Wealth Management Others including Treasury 2,000 628 1,500 123 122 1,000 Q1 FY 24 563 504 531 1,281 500 182 165 128 27 38 23 30 31 33 324 307 310 - Q1 FY 24 Q4 FY 23 Q1 FY 23 12M FY 23
Slide 8: Broking Revenue
7 BROKING REVENUE (Rs. Mn) 1,281 5% 6% Q1 FY 24 324 307 310 Q1 Q4 Q1 12M FY 24 FY 23 FY 23 FY 23
Slide 9: Asset Management Revenue
8 ASSET MANAGEMENT REVENUE (Rs. Mn) 10% 122 3% Q1 FY 24 33 30 31 Q1 Q4 Q1 12M FY 24 FY 23 FY 23 FY 23
Slide 10: Wealth Management Revenue
9 WEALTH MANAGEMENT REVENUE (Rs. Mn) 17% 123 29% Q1 FY 24 38 27 23 Q1 Q4 Q1 12M FY 24 FY 23 FY 23 FY 23
Slide 11: Others Including Treasury Revenue
10 OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) 10% 628 42% Q1 FY 24 182 165 128 Q1 Q4 Q1 12M FY 24 FY 23 FY 23 FY 23
Slide 12: Average Daily Turnover
11 AVERAGE DAILY TURNOVER (Rs. Bn) Equity Market ADTO Derivative Market ADTO 805 787 722 2,51,458 708 680 641 625 2,15,552 613 602 570 527 1,60,447 1,31,980 1,08,139 95,158 71,931 59,958 41,857 45,357 28,481 Q3 FY 21Q4 FY 21Q1 FY 22Q2 FY 22Q3 FY 22Q4 FY 22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q3
Slide 13: Customer Assets
12 CUSTOMER ASSETS (Rs. Mn) Total Assets DP/Broking Assets Wealth Assets 26,165 2,39,681 2,06,349 1,92,011 23,189 2,21,184 1,85,175 22,425 22,129 2,14,173 1,77,659 2,06,039 19,859 1,85,974 1,58,905 Q1 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Q1 FY24 Q1 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Q1 FY24 Q1 FY 23 Q2 FY
Slide 14: Financial Performance Q1 FY24
13 FINANCIAL PERFORMANCE Q1 FY 24 Q1 FY24
Slide 15: Key Highlights: Consolidated Financials
14 KEY HIGHLIGHTS : CONSOLIDATED FINANCIALS Revenues Profit Before Tax Profit After Tax EPS BVPS (Rs. mn) (Rs. mn) (Rs. mn) (Rs.) (Rs.) Q1 FY24 563 13 4 0.14 85.05 12% 118% 107% 106% 0.39% Q4 FY23 504 (73) (54) (2.18) 85.38 Q1 FY24 563 13 4 0.14 85.05 Q1 FY 24 6% 82% 91% 92% 2.58% Q1 FY23 531 74 46
Slide 16: Consolidated Profit & Loss Statement
15 CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) QoQ YoY Particulars Q1FY24 Q4 FY23 %Change Q1 FY23 %Change 12M FY23 Revenue Income from Operations 488 421 16 520 (6) 2,029 Other Income 75 83 (10) 11 582 125 Total Revenue 563 504 12 531 6 2,154 Expenses Employees Benefit Expense 293 309 (5) 260 13 1
Slide 17: Consolidated Profit & Loss Statement (continued)
16 CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) QoQ YoY Particulars (Rs. in mn) Q1FY24 Q4 FY23 %Change Q1 FY23 %Change 12M FY23 Share of Profit/(Loss) of Associates 5 (1) 600 2 150 1 Profit/(Loss) for the Period/Year 4 (54) 107 46 (91) 141 Other Comprehensive Income (10) (2) 400 (3) 233 (5) Total C
Slide 18: Consolidated Financials - PAT Mix
17 CONSOLIDATED FINANCIALS - PAT MIX (Rs. Mn) QoQ YoY Q1FY24 Q4 FY23 % Change Q1 FY23 % Change 12M FY23 a) Capital Markets (Broking, Distribution & (43) (37) 16 34 (226) 106 IB) b) Asset Management 11 4 175 1 1,000 18 c) Others 36 (21) 271 11 227 17 Profit/(Loss) After Tax 4 (54) 107 46 (91) 141 Q1
Slide 19: Segment Performance
18 SEGMENT PERFORMANCE (Rs. Mn) QoQ YoY Q1FY24 Q4 FY23 % Change Q1 FY23 % Change 12M FY23 Segment Revenue Advisory, Transactional & Other 543 487 11 517 5 2,073 Related Activities Financing and Investment 20 17 18 14 43 81 Activities 563 504 12 531 6 2,154 Income from Operations Q1 FY 24 Segment Pro
Slide 20: Institutional Equities
19 INSTITUTIONAL Q1 FY 24 EQUITIES
Slide 21: Conferences in Q1
20 CONFERENCES IN Q1 Emkay Institutional Equities organized its Commercial Vehicles Virtual Investor Conference on 22nd- 23rd June, which was attended by 5 67 100 Q1 FY 24 companies funds individual participants and the virtual 2-day conference resulted in more than 150 meetings
Slide 22: Corporate Access
21 CORPORATE ACCESS During Q1FY24 the Institutional Equities team organised Q1 FY 24 14 38 roadshows expert and client calls
Slide 23: Asset Management
22 ASSET MANAGEMENT Q1 FY 24 PMS & AIF vertical (Emkay Investment Managers Ltd.)
Slide 24: Q1FY24 Highlights
23 Q1FY24 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. Q1 FY 24
Slide 25: Wealth Management
24 WEALTH Q1 FY 24 MANAGEMENT
Slide 26: Wealth Management
25 WEALTH MANAGEMENT Undertakes regular and stringent monitoring of portfolios Managing INR.26,165 mn under MF Advisory & Distribution In less than 3 years Emkay Wealth emerged from a start-up wealth business to operating in 10 locations Tied up with Stockal to provide clients the option of investin
Slide 27: Key Highlights: Wealth Management
26 KEY HIGHLIGHTS AUD GROWTH (Rs. Mn) Branches No. of AUD AUD Transactions 30,000 26,165 25,000 20,000 19,470 21,221 21,104 20,714 19,859 22,425 23,189 22,129 100% 15,000 From Q1 FY23 10,000 50% 10 26,165 Mn 5,000 - From Q4 FY23 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24
Slide 28: Technology Edge
27 TECHNOLOGY Q1 FY 24 EDGE
Slide 29: Technology Innovation, Improving Business Efficiency
28 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 30: Infrastructure & Security Aspects
INFRASTRUCTURE & SECURITY ASPECTS 29 Robust Infrastructure Strong Network • Scaled up & fine-tuned hardware with high • Strong & reliable network from multiple service availability on critical infrastructure. providers across various network paths and higher • Robust platform improvising the capacit
Slide 31: Technology for Business
30 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 32: Digital First Approach
31 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 33: CSR Initiatives
32 CSR Q1 FY 24 INITIATIVES
Slide 34: Seed Conservation Drive
33 SEED CONSERVATION DRIVE Enormous Impact • Conservation today is the most underrated word. In line with our values and committment to support ESG initiatives, we joined hands with Keshav Srushti to initiate a seed conservation drive during the mango season in summer. • The drive witnessed enthusia
Slide 35: CSR - Ongoing Initiatives
34 CSR - ONGOING Q1 FY 24 INITIATIVES
Slide 36: Book Donation Drive
35 Book Donation Drive To support the students of the BMC school of Borivali, Emkayites are actively participating in a book donation drive. This initiative aims to provide underprivileged children with access to an array of enriching books that will enhance their intellect and cognitive abilities.
Slide 37: Veer Gatha
36 VEER GATHA On the occasion of the 77th Independence Day of India, Emkay has organized a virtual meet on 11th August, 2023 at 4 p.m. in association and in support of Veer Nari Shakti Resettlement Foundation. The esteemed speakers include Brigadier (R) Jayant Tiwari – Shaurya Chakra Q1 FY 24 Awarde
Slide 38: Human Resource Initiatives
37 HUMAN RESOURCE Q1 FY 24 INITIATIVES
Slide 39: HR Initiatives
38 HR INITIATIVES Talent Management • Being a part of the Knowledge-based industry, attracting and retaining modern talent requires significant groundwork and reputation management. Fortunately, we have achieved success in establishing a strong reputation, which has enabled us to attract talent from
Slide 40: HR Initiatives (Employee Connect)
39 HR INITIATIVES Employee Connect and Engagements • We initiated a survey for new joiners in the last 30, 60, and 90 days to gather their feedback. This feedback is then carefully evaluated, and actionable steps are taken based on the responses received. • In this digital era, it is crucial not to
Slide 41: Corporate Overview
40 CORPORATE Q1 FY 24 OVERVIEW
Slide 42: Emkay Promise, Mission & Values
41 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 43: Resilience and Responsibility: Our Differentiators
42 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 44: A Legacy of Over 25 Years
43 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 45: The Journey
44 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 46: Products & Services
45 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 (an Ed-Tech focused on
Slide 47: The Board
46 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 48: Shareholding Summary
47 SHAREHOLDING SUMMARY 74.49% Promoters & Promoter Group Q1 FY 24 25.51% General Public
Slide 49: Recent Awards & Recognitions
48 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 Q1 FY 24 Asiamoney Brokers Poll is the largest As
Slide 50: Contact Us
49 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 24 Mumbai - 400028.
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