Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Q3 FY2025 Earnings Presentation
48 slides from Edelweiss Financial Services's earnings presentation, February 2025
Slide 1: Edelweiss Financial Services Limited Earnings update
Edelweiss Financial Services Limited Earnings update – Quarter ended Dec 24 US $ version
Slide 2: Contents
CONTENTS Overview for quarter ended Dec 24 03 Performance highlights 06 Important updates 19 Business performance 23 Governance & corporate responsibility 41
Slide 3: Overview
Overview Quarter ended Dec 24 3
Slide 4: Edelweiss at a glance
Edelweiss at a glance $756 Mn $22 Mn Net Worth Ex-Insurance PAT $1,354 Mn $0.6 (FV $0.01) Net Debt BVPS 4
Slide 5: Diversified with seven high-quality businesses
Diversified with seven high-quality businesses Edelweiss Financial Services Ltd (EFSL) Asset Nido Home Zuno General Life EAAA Mutual Fund NBFC Reconstruction Finance Insurance Insurance EAAA India Edelweiss Life Alternatives ECL Finance Insurance Company Ltd (EAAA) Edelweiss Asset Edelweiss Asset Lt
Slide 6: Performance Highlights
Performance Highlights Quarter ended Dec 24 6
Slide 7: Performance highlights
Performance highlights 1 Healthy profitability with steady growth in key business metrices Consol PAT at $15 Mn; Ex-Insurance PAT at $22 Mn EAAA AUM up 11% YoY to $6,748 Mn; ARR AUM at $4,922 Mn MF Equity AUM up 56% YoY to $7,264 Mn; AUM up 14% YoY to $16,386 Mn Zuno GI losses down by 52% YoY in nin
Slide 8: Healthy growth in profitability
Healthy growth in profitability $ Mn EFSL Consol EAAA Mutual Fund Asset Reconstruction 34 32 21 30 29 6 16 4 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 17% YoY 35% YoY 65% YoY 8% YoY 8
Slide 9: Earnings distribution across businesses
Earnings distribution across businesses $ Mn Quarter Ended Nine Month Ended Business Dec 24 Dec 23 Dec 24 Dec 23 EAAA 7.0 5.2 21.5 15.9 Mutual Fund 1.4 1.1 6.2 3.7 Asset Reconstruction 11.7 11.1 32.2 29.9 NBFC 0.7 4.1 5.1 12.2 Nido Home Finance 0.7 0.3 1.1 1.1 Zuno General Insurance (2.8) (2.6) (5.2
Slide 10: Steady growth in key business metrics (1/3)
Steady growth in key business metrices (1/3) EAAA Realisation grew by 51% YoY and AUM at $6,748 Mn, increased 11% YoY Deployment grew by 37% YoY in nine months Mutual Fund Equity AUM at $7,264 Mn, up 56% YoY; SIP book at $42 Mn, up 80% YoY AUM at $16,386 Mn, up 14% YoY Asset Reconstruction Recovered
Slide 11: Steady growth in key business metrics (2/3)
Steady growth in key business metrices (2/3) NBFC Disbursed $6 Mn of retail loans Wholesale book reduced by 12% YoY to in the quarter; $37 Mn in nine months, $426 Mn 78% via CLM Nido Home Finance Disbursed $48 Mn in the quarter, up 37% YoY; Partnership with State Bank of India $119 Mn in nine months
Slide 12: Steady growth in key business metrics (3/3)
Steady growth in key business metrices (3/3) Zuno General Insurance Gross Written Premium grew by 27% YoY to Losses declined by 52% YoY $88 Mn in nine months, one of the in nine months fastest growing in the industry Life Insurance Gross Premium of $140 Mn in nine months; AUM at $1,045 Mn, up 19% Yo
Slide 13: Customer reach increased by 45% YoY
Customer reach increased by 45% YoY In Lakhs Customer Reach Mutual Fund Folios Zuno GI Customers 97 66 23 67 47 14 Dec 23 Dec 24 Dec 23 Dec 24 Dec 23 Dec 24 45% YoY 67% YoY 39% YoY 13
Slide 14: With a steady growth in customer assets
With a steady growth in customer assets $ Mn Customer Assets EAAA AUM Mutual Fund AUM 26,386 24,830 16,386 6,748 6,085 14,365 Dec 23 Dec 24 Dec 23 Dec 24 Dec 23 Dec 24 6% YoY 11% YoY 14% YoY 14
Slide 15: Robust balance sheet with well capitalised businesses
Robust balance sheet with well capitalised businesses Business Metric Value NBFC Capital Adequacy 51.1% Nido Home Finance Capital Adequacy 37.9% Asset Reconstruction Capital Adequacy 81.5% Zuno General Insurance Solvency Ratio 162% Life Insurance Solvency Ratio 170% 15
Slide 16: Net debt reduced by $445 Mn YoY
Net debt reduced by $445 Mn YoY Net Debt ($ Mn) $ Mn 25% Business Dec 24 Dec 23 1,799 NBFC 361 517 Nido Home Finance 151 150 1,354 EAAA 48 50 Asset Reconstruction 35 188 Corporate 759 893 Net Debt 1,354 1,799 Dec 23 Dec 24 16
Slide 17: Cash flow plan
Cash flow plan $ Mn Jan ‘25 to Dec ‘25 Opening Available Liquidity (A) 537 Inflows Expected Inflows 829 Fresh Borrowings 187 Total Inflows (B) 1,016 Outflows Repayments 701 Disbursements 455 Total Outflows (C) 1,156 Closing Available Liquidity (A+B-C) 397 17
Slide 18: Assets in each tenor range adequately cover liabilities
Assets in each tenor range adequately cover liabilities $ Mn Assets Liabilities Excess / (Gap) Up to 1 year 1,320 1,121 199 1-3 years 1,238 1,226 12 3 years+ 1,086 537 549 18
Slide 19: Important Updates
Important Updates 1. Regulatory Update 2. EAAA IPO Update 3. Update on Key Priorities 19
Slide 20: RBI lifted restrictions on EARC and ECLF
1 RBI lifted restrictions on EARC and ECLF ▪ RBI lifted restrictions on EARC and ECLF with immediate effect on December 17, 2024 Regulatory Update ▪ Both companies addressed the supervisory concerns raised by the RBI and implemented all remedial measures EARC Recoveries remained strong; recovered $5
Slide 21: EAAA IPO update
2 EAAA IPO update Filing of DRHP Review by SEBI Filing of RHP Listing EAAA filed DRHP for IPO Approval of the DRHP ▪ Road shows ▪ Launch of the IPO on December 5, 2024 ▪ File RHP with the stock ▪ Listing of EAAA on stock exchanges exchanges Completed Awaited Pending Step 2 Pending Steps 2&3 EAAA IPO
Slide 22: Update on key priorities
3 Update on key priorities A Scale up of profitability in EAAA and Mutual Fund ▪ EAAA PAT up by 35% YoY in nine months ▪ Mutual Fund PAT grew by 65% YoY in the same period B Insurance businesses to breakeven by FY27 ▪ Zuno GI losses declined by 52% YoY in nine months ▪ Operational efficiency in Life
Slide 23: Business Performance
Business Performance Quarter ended Dec 24 23
Slide 24: EAAA: Business performance snapshot
EAAA EAAA: Business performance snapshot Key Metrics for the quarter Business Update ARR AUM ($ Mn) 4,922 AUM grew by 11% YoY to $6,748 Mn Deployment grew by 37% YoY in nine months AUM ($ Mn) 6,748 Realisation grew by 51% YoY in nine months Real Assets strategy signed deal worth Deployment ($ Mn) 64
Slide 25: EAAA: Financial performance snapshot
EAAA EAAA: Financial performance snapshot $ Mn Quarter ended Quarter ended Dec 24 Dec 23 AUM 6,748 6,085 ARR AUM 4,922 4,644 Equity 107 81 Gross Revenue 19 15 Opex 11 8 Profit After Tax 7.0 5.2 25
Slide 26: EAAA assets overview
EAAA EAAA assets overview AUM – Strategy wise AUM – Geography wise ARR AUM – Strategy wise 1% 6% 2% 25% 30% 21% 44% $6,748 Mn $6,748 Mn $4,922 Mn 54% 69% 48% North America India Private Credit Real Assets Others Private Credit Real Assets Others Europe Rest of the world 26
Slide 27: Mutual Fund: Business performance snapshot
Mutual Fund Mutual Fund: Business performance snapshot Key Metrics for the quarter Business Update Equity AUM ($ Mn) 7,264 Equity AUM at $7,264 Mn, up 56% YoY Net equity inflows of $444 Mn in the quarter, up 2x YoY; reached the $1,165 Mn mark in nine months AUM ($ Mn) 16,386 AUM grew by 14% YoY to $
Slide 28: Mutual Fund: Financial performance snapshot
Mutual Fund Mutual Fund: Financial performance snapshot $ Mn Quarter ended Quarter ended Dec 24 Dec 23 AUM 16,386 14,365 Equity AUM 7,264 4,672 Equity 24 27 Revenue 7 6 Opex 5 5 Profit After Tax 1.4 1.1 28
Slide 29: Robust growth in AUM and customer base
Mutual Fund Robust growth in AUM and customer base MF Equity AUM ($ Mn) MF Debt AUM ($ Mn) 7,264 9,518 9,110 8,280 4,672 3,177 Dec 22 Dec 23 Dec 24 Dec 22 Dec 23 Dec 24 SIP Book ($ Mn) Active Folios (# in Lakhs) 42 23 14 23 11 17 Dec 22 Dec 23 Dec 24 Dec 22 Dec 23 Dec 24 Growing SIP book adds to the
Slide 30: Asset Reconstruction: Business performance snapshot
ARC Asset Reconstruction: Business performance snapshot Key Metrics for the quarter Business Update Equity ($ Mn) 400 Recovered $169 Mn in the quarter, of which 13% was from retail portfolio AUM ($ Mn) 3,253 Share of retail assets in capital employed stood at 15% Capital Employed ($ Mn) 422 Well mat
Slide 31: Asset Reconstruction: Financial performance snapshot
ARC Asset Reconstruction: Financial performance snapshot $ Mn Quarter ended Quarter ended Dec 24 Dec 23 AUM 3,253 4,380 Capital Employed 422 545 Wholesale assets 358 462 Retail assets 64 83 Equity 400 356 Revenue 23 33 Opex 3 3 Profit After Tax 11.7 11.1 Edelweiss’ share in PAT 7.0 6.6 31
Slide 32: NBFC: Business performance snapshot
NBFC NBFC: Business performance snapshot Key Metrics for the quarter Business Update Equity ($ Mn) 384 Partnership with Central Bank of India, IDFC First Bank and Godrej Capital continues to deepen AUM ($ Mn) 627 Disbursed $6 Mn of retail loans in the quarter; 71% under co-lending model Capital Adeq
Slide 33: NBFC: Financial performance snapshot
NBFC NBFC: Financial performance snapshot $ Mn Quarter ended Quarter ended Dec 24 Dec 23 AUM 627 812 Gross Loan Book 156 269 Gross Revenue 20 34 Net Revenue 4 8 Opex 4 9 Credit Cost (1) (6) Profit After Tax 0.7 4.1 GNPA 2.32% 2.69% NNPA 1.46% 1.68% 33
Slide 34: Wholesale reduction on track
NBFC Wholesale reduction on track $ Mn ECLF wholesale loan assets 60% 1,045 426 88 Dec 22 Dec 24 Dec 26E Reduction will continue in the normal course of business 34
Slide 35: Nido Home Finance: Business performance snapshot
Nido Nido Home Finance: Business performance snapshot Key Metrics for the quarter Business Update Equity ($ Mn) 96 Disbursed $48 Mn in the quarter, up 37% YoY; 33% via CLM AUM ($ Mn) 464 Partnership with State Bank of India continues to deepen with ongoing disbursals Capital Adequacy 37.9% Asset qua
Slide 36: Nido Home Finance: Financial performance snapshot
Nido Nido Home Finance: Financial performance snapshot $ Mn Quarter ended Quarter ended Dec 24 Dec 23 AUM 464 444 Gross Loan Book 358 344 Gross Revenue 15 13 Net Revenue 6 5 Opex 5 4 Credit Cost 0 0 Profit After Tax 0.7 0.3 GNPA 2.19% 1.96% NNPA 1.79% 1.62% 36
Slide 37: Zuno General Insurance: Business performance snapshot
Zuno Zuno General Insurance: Business performance snapshot Key Metrics for the quarter Business Update Equity ($ Mn) One of the fastest growing players with gross 37 direct premium income (GDPI) growth of 27% YoY in nine months Motor segment GDPI grew 47% YoY in the GWP ($ Mn) 32 quarter against the
Slide 38: Zuno General Insurance: Financial performance snapshot
Zuno Zuno General Insurance: Financial performance snapshot $ Mn Quarter ended Quarter ended Dec 24 Dec 23 Gross Written Premium 32 30 Net Premium Income 17 12 Investment Income & 5 7 Other Income Total Income 22 18 Policy benefits & 13 9 insurance policy liability Other expenses 12 12 Profit After
Slide 39: Life Insurance: Business performance snapshot
Life Insurance Life Insurance: Business performance snapshot Key Metrics for the quarter Business Update Equity ($ Mn) 93 Gross premium of $52 Mn in the quarter Individual APE ($ Mn) 13 Embedded Value of $241 Mn, up 14% YoY AUM at $1,045 Mn, up 19% YoY Policies Issued 10,144 Traditional Par and Non-
Slide 40: Life Insurance: Financial performance snapshot
Life Insurance Life Insurance: Financial performance snapshot $ Mn Quarter ended Quarter ended Dec 24 Dec 23 Gross Premium 52 49 Net Premium Income 51 48 Investment Income & (1) 35 Other Income Total Income 50 83 Policy benefits & 32 65 insurance policy liability Other expenses 23 23 Profit After Ta
Slide 41: Governance & Corporate Responsibility
Governance & Corporate Responsibility 41
Slide 42: 7 Member Board with 4 Independent Directors
7 Member Board with 4 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 Profes
Slide 43: Significant institutional ownership
Significant institutional ownership Shareholding Pattern as on Dec 31, 2024 Key Shareholders Percent 1 TIAA CREF Funds 7.2% Employee Trust 2.6% 2 CLSA Global Markets 6.4% 3 LIC 2.6% DIIs, Non Institutions 4 Vanguard Group 2.6% & Others 34.3% 32.7% Promoter Group Flowering Tree Investment 5 1.7% Mana
Slide 44: Our contribution to building a more sustainable tomorrow
Our contribution to building a more sustainable tomorrow Under the leadership of EdelGive Foundation, we have… Assisted over 60% of Ensured long term $164 Mn mobilized association with average Partnered with over 280 EdelGive’s NGO partners to through commitments tenure of 5-years high caliber NGOs
Slide 45: Our investment in communities
Our investment in communities EdelGive Foundation’s commitment to investing in communities 74 Districts across 13 States Sustainable Women Quality Education Livelihoods Empowerment $10 Mn Committed 2.2 Cr children impacted 2.54 lakh Individuals trained 2.59 lakh women supported (~$2 Mn cashflow from
Slide 46: Trusted partner: EdelGive funding partners & networks
Trusted partner: EdelGive funding partners & networks Foundations, Corporates and HNIs partner with Edelgive Platform for their philanthropic allocation 46
Slide 47: 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 48: Safe Harbour
Safe Harbour Slide 4: Net worth includes MI, Ex-Insurance PAT is post MI Slide 4,7,8,9: Ex-Insurance PAT is post-MI; Business PATs are pre-MI Slide 4,7,16,22: Debt includes accrued interest and excludes CBLO and securitisation liabilities Slide 4,7,16,22: Net debt is gross debt minus high quality li
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