Lkp Securities Limited · BSE:LKPSEC
Lkp Securities — LKP Finance — Investor Presentation (May 2012)
16 slides from Lkp Securities's investor presentation, May 2012
Slide 1: LKP Corporate Presentation
LKP Corporate Presentation May 2012
Slide 2: Overview
Overview Consolidated Revenues (Rs. Mn.) • LKP Finance (NBFC) is registered with RBI and listed on BSE. • Established in 1948. The company went public in 1986. 1,400 • Key businesses include Equity broking and Distribution, Fixed Income, Merchant Banking and Treasury. 1,003 854 • Large client base o
Slide 3: A strong balance sheet
A strong balance sheet INR Mn. FY12* FY11* Shareholder’s Funds 1,584 1,576 Long term borrowings 42 156 Long term provisions 6 5 Total Non Current Liabilities 48 161 Current Liabilities 1,949 1,483 Total Liabilities 3,580 3,220 Fixed Assets 152 155 Non Current investments 394 438 Deferred Tax Asset 4
Slide 4: Profitable
Profitable INR Mn. FY12* FY11* Total Revenue 652 1,003 Total Expenditure 463 585 Operating Profit 189 417 Depreciation 19 21 Interest Cost 111 66 PBT 59 331 Tax 23 68 PAT 36 263 * Consolidated Profit & Loss of LKP Finance Ltd 4
Slide 5: Group structure
Group structure Shareholding Pattern* Promoter Group – 53.98% Public – 46.02% BOD Mahendra Doshi - Chairman Sayanta Basu LKP Finance Limited Pratik Doshi (NBFC) Milan Bhise Vineet Suchanti Hariharan Padmanabhan 99.81% LKP Securities Limited Institutional Equities Broking & Distribution Fixed Income
Slide 6: Organization structure
Organization structure Board Sub Committee Mahendra Doshi, Sayanta Basu , Pratik Doshi CEO - Equities Head - Corporate Affairs President - Fixed Income Anish Unadkat S.S.Gulati Sanjay Chitalia • Supported by a team of 40 personnel Institutional Equities Retail Distribution IT & Research Anand Agarwa
Slide 7: The opportunity
The opportunity • Total brokerage market: 12,000 crs per annum growing at 20% per annum with the natural tailwinds of GDP and greater domestic and foreign participation. 800 brokers and 62,000 sub-brokers. Capital key to success with regulators making life difficult for weaker players. Retail pool 3
Slide 8: The opportunity
The opportunity •Industry revenue pool from equity broking at ~Rs 13,000 cr for FY11 grew by only 13% as compared to the 46% growth in exchange trading volumes. •The industry is likely to grow at a moderate pace unless there is a material pick up in cash volumes and increased activity from of retail
Slide 9: Equities: The business today
Equities: The business today Retail and Institutional Daily Turnover (Rs. Mn.) • LKP Finance (NBFC) is registered with RBI and listed on 2,571 2,361 BSE. • LKP Securities is registered Stock Broker with SEBI. 1,485 1,512 • Key businesses include Equity Broking and Distribution, Fixed Income, Merchan
Slide 10: Retail Distribution
Retail Distribution • Pan India footprint with 822 outlets • Strong network to facilitate reach • Large customer base of ~79,600 clients • Strong network of 800 Sub-brokers No of Clients 79,600 67,500 70,200 48,217 39,745 2008 2009 2010 2011 2012 Branches/Outlets 822 540 450 385 285 2008 2009 2010 2
Slide 11: Retail Distribution … other products
Retail Distribution … other products Mutual Fund Distribution Portfolio Management Services • AUM worth ~Rs.1155 cr. with Rs.155cr in Equity and • In-house team of fundamental and technical research Rs.900cr in Debt analysts • Supported by a team of 23 personnel . • Supported by a host of financial
Slide 12: Institutional Equities
Institutional Equities • Established in 1948, taken over by Mr. Mahendra Doshi in 1982 • Long track record • Strong risk management culture, managed 2008 downside with minimal losses. Minimal proprietary trading activities • Presence in 400+ locations, 75,000 retail and high networth clients giving
Slide 13: Fixed Income: Business today
Fixed Income: Business today • Member of NSE and BSE WDM segment • Empanelled with major banks, insurance companies, mutual funds, Corporates and domestic institutions • Network – Hotline with treasuries of all major banks, mutual funds and primary dealers • Ranked in the top 3 WDM brokers in India.
Slide 14: Fixed Income: Deals and Placements
Fixed Income: Deals and Placements Primary Market Debt Raised (Rs. Bn) • Ranked No.2 Arranger for CP & Short Term Debts and Prime League Table • Placed Fertiliser bonds worth Rs.55 bn. for various 418 317 346 Fertiliser companies in FY09. 152 • Primary placement of CPs, NCDs and CD’s of ~Rs.480 bn &
Slide 15: Fixed Income: Relationships with Institutions & Corporates
Fixed Income: Relationships with Institutions & Corporates • We have strong relationships with over 475 Institutions & Corporates. LKP has successfully executed deals for the above Clients 15
Slide 16: Disclaimer
Disclaimer LKP Finance Limited (the Company) has prepared the information contained in this Presentation. While the information contained in the Presentation has been prepared in good faith, each party to whom this Presentation is made available must make its own independent assessment of the Compan