Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — Q3 FY24 Earnings Presentation
46 slides from Emkay Global Financial Services's earnings presentation, Jan 31, 2024
Slide 1: Cover letter to stock exchanges
DATE: 31st January, 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 Pres
Slide 2: Investor Presentation Q3 FY24
1 INVESTOR Q3 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 Q3 FY24
3 BUSINESS PERFORMANCE Q3 FY 24 Q3 FY24
Slide 5: Key Performance Indicators: Emkay Q3 FY24 at a Glance
4 KEY PERFORMANCE INDICATORS EMKAY: Q3 FY24 AT A GLANCE (Rs. Mn) 3,27,372 28,930 8,587 2,89,855 Total Assets Wealth Assets PMS & AIF AUM DP/Broking Assets 48%YoY 23%YoY 44%YoY 51%YoY 834 147 122 491 Q3 FY 24 Revenue PBT PAT Total Employees 49% YoY 220% YoY 40% YoY As on 31.12.2023 3,578 2,294 13% RO
Slide 6: Key Highlights of Q3 FY24
5 KEY HIGHLIGHTS OF Q3 FY24 Consolidated revenues Consolidated PAT Emkay Digi Banking Conference Investment Banking increased by increased by 40% YoY was organized on 29-30 Nov 2023 and was attended by to INR 122 mn • Indian Bank: Merchant Banker to QIP for 49% YoY to INR 834 mn INR 40,000 mn • Over
Slide 7: Revenue Mix
6 REVENUE MIX (Rs. Mn) 2,500 2,177 Broking & Allied Services Asset Management 2,000 Wealth Management Others including Treasury 1,657 768 1,500 834 508 80 97 780 560 85 1,000 90 Q3 FY 24 333 253 1,232 500 25 28 33 974 35 209 23 28 441 466 300 - Q3 FY24 Q2 FY 24 Q3 FY 23 9M FY24 9M FY23
Slide 8: Broking Revenue
7 BROKING REVENUE (Rs. Mn) 26% 47% 1,232 5% 974 Q3 FY 24 466 441 300 Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23
Slide 9: Asset Management Revenue
8 ASSET MANAGEMENT REVENUE (Rs. Mn) 8% 24% 97 90 6% Q3 FY 24 35 33 28 Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23
Slide 10: Wealth Management Revenue
9 WEALTH MANAGEMENT REVENUE (Rs. Mn) 6% 85 9% 80 11% Q3 FY 24 28 25 23 Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23
Slide 11: Others Including Treasury Revenue
10 OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) 51% 59% 768 32% 508 Q3 FY 24 333 253 209 Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23
Slide 12: Customer Assets
11 CUSTOMER ASSETS (Rs. Mn) Total Assets Wealth Assets DP/Broking Assets 2,89,855 3,27,372 28,930 2,41,080 2,75,856 26,565 26,453 2,40,059 23,478 2,05,949 22,694 22,418 2,14,506 2,21,184 21,559 21,367 20,981 1,84,906 1,91,722 2,06,326 20,140 1,77,371 1,93,204 1,85,966 1,64,522 1,58,615 1,74,213 1,78
Slide 13: Financial Performance Q3 FY24
12 FINANCIAL PERFORMANCE Q3 FY 24 Q3 FY24
Slide 14: Key Highlights: Consolidated Financials
13 KEY HIGHLIGHTS : CONSOLIDATED FINANCIALS Revenues Profit Before Tax Profit After Tax EPS BVPS (Rs. in mn) (Rs. in mn) (Rs. in mn) (Rs.) (Rs.) Q3 FY24 834 147 122 4.97 92.95 7% 25% 31% 32% 5.69% Q2 FY24 780 118 93 3.76 87.95 Q3 FY23 560 46 87 3.55 87.79 49% 220% 40% 40% 5.88% Q3 FY 24 9M FY24 2,17
Slide 15: Consolidated Profit & Loss Statement
14 CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) QoQ% YoY % % Particulars (Rs. in mn) Q3 FY24 Q2 FY24 Change Q3 FY23 Change 9M FY24 9M FY23 Change Revenue Income from Operations 752 704 7 543 38 1,944 1,616 20 Other Income 82 76 8 17 382 233 41 468 Total Revenue 834 780 7 560 49 2,177 1,657 31 Expen
Slide 16: Consolidated Profit & Loss Statement (continued)
15 CONSOLIDATED PROFIT & LOSS STATEMENT (Rs. Mn) QoQ% YoY % % Q3 FY24 Q2 FY24 Change Q3 FY23 Change 9M FY24 9M FY23 Change Particulars (Rs. in mn) Share of Profit/(Loss) of (1) (3) 67 1 (200) 1 2 (50) Associates Profit for the Period/Year 122 93 31 87 40 219 195 12 Q3 FY 24 Other Comprehensive Incom
Slide 17: Consolidated Financials - PAT Mix
16 CONSOLIDATED FINANCIALS - PAT MIX (Rs. Mn) QoQ% YoY % % Q3 FY24 Q2 FY24 Change Q3 FY23 Change 9M FY24 9M FY23 Change a) Capital Markets 123 75 64 72 71 155 144 8 (Broking, Distribution & IB) b) Asset Management (13) 9 (244) 4 (425) 7 14 (50) Q3 FY 24 c) Others 12 9 33 11 9 57 37 54 Profit/(Loss)
Slide 18: Segment Performance
17 SEGMENT PERFORMANCE (Rs. Mn) QoQ% YoY % % Q3 FY24 Q2 FY24 Change Q3 FY23 Change 9M FY24 9M FY23 Change Segment Revenue Advisory, Transactional & Other 767 7 541 52 2,130 1,594 34 Related Activities 820 Financing and Investment Activities 14 13 8 19 (26) 47 63 (25) Income from Operations 834 780 7
Slide 19: Institutional Equities
18 INSTITUTIONAL Q3 FY 24 EQUITIES
Slide 20: Conferences in Q3
19 CONFERENCES IN Q3 Emkay Institutional Equities organized Digi Banking Conference 2023 which was attended by Q3 FY 24 12 71 107 86 companies funds individual Analysts participants 291 group meetings
Slide 21: Corporate Access
20 CORPORATE ACCESS During Q3 FY24 the Institutional Equities team held Q3 FY 24 11 66 7 roadshows expert and Group Calls/ client calls Event/ Conference
Slide 22: Institutional Research: Twin Wins
21 INSTITUTIONAL RESEARCH Best Economist TWIN WINS for Emkay at Madhavi Arora Lead – Economist Q3 FY 24 Best Analyst for Energy Sabri Hazarika Senior Research Analyst
Slide 23: Asset Management
22 ASSET MANAGEMENT Q3 FY 24 PMS & AIF vertical (Emkay Investment Managers Ltd.)
Slide 24: Q3 FY24 Highlights
23 Q3 FY24 HIGHLIGHTS Successful completion of the early distribution of proceeds from the Emkay Emerging Stars Fund – Series IV for our unit holders. Following deductions for Q3 FY 24 all fees and expenses, we achieved an impressive 20% to 25% XIRR (depending on the class of shares) for our investo
Slide 25: Q3 FY24 Highlights
24 Q3 FY24 HIGHLIGHTS Emkay Investment Managers efficiently set up and seamlessly inaugurated their dynamic new office space during the quarter. The team successfully transitioned to the vibrant workspace on Q3 FY 24 January 1, 2024, marking the beginning of an exciting chapter for the company.
Slide 26: Q3 FY24 Highlights
25 Q3 FY24 HIGHLIGHTS Emkay Emerging Stars Fund - Series VI (AIF Category III), • Both strategies are aimed at empowering a Thematic-Focused Multi-Cap Fund, and Emkay India’s investors to capitalize on the following Five Themes: Golden Decade of Growth, a PMS strategy were launched » Rising consumpt
Slide 27: Investment Banking
26 INVESTMENT Q3 FY 24 BANKING
Slide 28: Key Highlights
27 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 Q3 FY 24 01 02 03
Slide 29: Wealth Management
st ro > Ey, oD je, WEALTH MANAGEMENT
Slide 30: Wealth Management
29 WEALTH MANAGEMENT Managing INR 28,930 mn under MF Advisory & Distribution Undertakes regular and stringent monitoring of portfolios Tie-up with Stockal to provide clients with the option of investing in the US Equity Markets Research Reports • Navigator: A monthly with a roundup on economy, marke
Slide 31: Key Highlights
30 KEY HIGHLIGHTS AUD GROWTH (Rs. Mn) Branches No. of AUD AUD Transactions 35,000 28,930 30,000 26,565 26,453 91% 25,000 21,559 21,367 20,981 22,694 23,478 22,418 20,140 20,000 15,000 14 10,000 INR 28,930 Mn 5,000 YOY - Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY24 FY24 FY24
Slide 32: Technology Edge
st ro > Ey, oD je, TECHNOLOGY EDGE
Slide 33: Technology Innovation, Improving Business Efficiency
32 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 34: Infrastructure & Security Aspects
INFRASTRUCTURE & SECURITY ASPECTS 33 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 35: Technology for Business
34 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 36: Digital First Approach
35 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 37: Corporate Overview
36 CORPORATE Q3 FY 24 OVERVIEW
Slide 38: Emkay Promise, Mission & Values
37 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 39: Resilience and Responsibility: Our Differentiators
38 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 40: A Legacy of Over 25 Years
39 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 41: The Journey
40 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 42: Products & Services
41 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 Q3 FY 24 Estate & Succ
Slide 43: The Board
42 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 44: Shareholding Summary
43 SHAREHOLDING SUMMARY 74.38% Promoters & Promoter Group Q3 FY 24 25.62% General Public
Slide 45: Recent Awards & Recognitions
44 RECENT AWARDS & RECOGNITIONS Best Technology Emkay Emerging Stars Fund, Team (Wealth our Category III AIF was Management) at the awarded for 2nd Annual NBFC and Best post-Covid AIF FinTech Excellence performance across all Awards 2023 by categories (basis 6 months Quantic Business Absolute Return
Slide 46: Contact Us
45 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), Q3 FY 24 Mumbai - 400028.
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