Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — Q2 FY23 Earnings Presentation
46 slides from Emkay Global Financial Services's earnings presentation, Nov 7, 2022
Slide 1: Investor presentation covering letter to exchanges
Emleay’ Your success is our success 07.11.2022 To, To, Listing Department Listing Department National Stock Exchange of India Limited | BSE Limited Fxchange Plaza P. J. Tower, Dalal Street, Bandra Kurla Complex Mumbai- 400 001 Bandra (East), Mumbai- 400 051 Scrip Code: EMKAY Scrip Code: 532737 Dear
Slide 2: Investor Presentation Q2 FY23
1 INVESTOR Q2 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
3 BUSINESS PERFORMANCE Q2 FY 23 Q2 FY23
Slide 5: Key Performance Indicators: Emkay Q2 FY23 at a Glance
4 KEY PERFORMANCE INDICATORS EMKAY: Q2 FY23 AT A GLANCE 2,14,173 21,382 6,574 1,86,217 Total Assets Wealth Assets PMS & AIF AUM DP/Broking Assets (in million) (in million) (in million) (in million) 23%YoY Growth 3%YoY Growth 20%YoY D-growth 27%YoY Growth 580 78 61 63 Revenue PBT PAT Total Comprehens
Slide 6: Key Highlights of Q2 FY23
5 KEY HIGHLIGHTS OF Q2 FY23 Consolidated revenues Consolidated PAT Emkay Confluence 2022 Institutional Equities increased by increased by 9% QoQ to Rs. 580 mn 33% QoQ to Rs. 61 mn was organized in August 2022 by the IE team and was Transacted a block of nearly 3 mn shares in Advanced attended by Enz
Slide 7: Revenue Mix (Rs. Mn)
6 REVENUE MIX (Rs. Mn) 1,400 Broking & Allied Services Asset Management 1,200 Wealth Management Others including Treasury 504 1,000 303 800 62 34 62 72 600 349 Q2 FY 23 145 171 400 39 29 20 22 28 675 673 32 200 366 309 342 - Q2 Q1 Q2 6M FY23 6M FY22 FY 23 FY 23 FY 22
Slide 8: Broking Revenue
7 BROKING REVENUE (Rs. Mn) In the second 0.30% quarter, 7% revenue from broking and 675 673 allied services 19% increased 19% 19% QoQ QoQ Q2 FY 23 366 342 309 and 7% YoY to 7% Q2 FY 23 Q1 FY 23 Q2 FY 22 6M FY23 6M FY22 Rs.366 mn YoY
Slide 9: Asset Management Revenue
8 ASSET MANAGEMENT REVENUE (Rs. Mn) In the second quarter, revenue 5% 14% from asset management fell 10% 10% QoQ 62 72 and 10% QoQ Q2 FY 23 29 32 28 increased 5% YoY to Rs.29 mn 5% Q2 FY 23 Q1 FY 23 Q2 FY 22 6M FY23 6M FY22 YoY
Slide 10: Wealth Management Revenue
9 WEALTH MANAGEMENT REVENUE (Rs. Mn) In the second quarter, revenue 96% from wealth 82% management grew 75% 62 75% QoQ 75% and 96% QoQ Q2 FY 23 39 34 22 20 YoY to Rs.39 mn 96% YoY Q2 Q1 Q2 6M FY23 6M FY22 FY 23 FY 23 FY 22
Slide 11: Others Including Treasury Revenue
10 OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) In the second quarter, revenue from others 58% 40% including treasury fell 15% 504 15% QoQ 15% and QoQ Q2 FY 23 349 58% YoY to 303 145 171 Rs.145 mn 58% YoY Q2 Q1 Q2 6M FY23 6M FY22 FY 23 FY 23 FY 22
Slide 12: Average Daily Turnover
11 AVERAGE DAILY TURNOVER Equity Market ADTO (in bn) Derivative Market ADTO (in bn) 1,31,980 805 787 722 708 1,08,139 680 621 641 613 602 95,158 589 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 Q2 FY23 Q1 FY 21 Q2 FY
Slide 13: Customer Assets (Rs. in Mn)
12 CUSTOMER ASSETS (Rs. in Mn) Total Assets Wealth Assets DP/Broking Assets 1,86,217 21,382 1,68,137 214,173 20,696 1,62,126 1,93,075 1,85,974 19,033 1,48,639 1,53,266 17,800 1,74,816 1,79,398 17,199 16,224 16,362 17,237 1,29,738 15,924 1,20,378 1,53,647 1,11,525 1,43,318 1,34,349 11,601 86,466 1,09
Slide 14: Financial Performance
13 FINANCIAL PERFORMANCE Q2 FY 23 Q2 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.) Q2 FY23 580 78 61 2.48 84 9% 5% 33% 33% 2% Q1 FY23 534 74 46 1.86 83 Q2 FY23 580 78 61 2.48 84 Q2 FY 23 22% 41% 35% 35% 12% Q2 FY22 739 132 94 3.81 75 6M F
Slide 16: Consolidated Profit & Loss Statement
15 CONSOLIDATED PROFIT & LOSS STATEMENT QoQ% YoY % % Particulars (Rs. in mn) Q2FY23 Q1 FY23 Change Q2 FY22 Change 6M FY23 6M FY22 Change Revenue Income from Operations 566 520 9 725 (22) 1,073 1,265 (15) Other Income 14 14 - 14 - 28 17 65 Total Revenue 580 534 9 739 (22) 1,101 1,282 (14) Expenses Em
Slide 17: Consolidated Profit & Loss Statement (continued)
16 CONSOLIDATED PROFIT & LOSS STATEMENT QoQ% YoY % % Q2FY23 Q1 FY23 Change Q2 FY22 Change 6M FY23 6M FY22 Change Particulars (Rs. in mn) Share of Profit/(Loss) of Associates (2) 2 (200) (5) 60 - (8) 100 Profit for the Period/Year 61 46 33 94 (35) 107 192 (44) Q2 FY 23 Other Comprehensive Income 2 (3
Slide 18: Consolidated Balance Sheet: Assets
17 CONSOLIDATED BALANCE SHEET Particulars (Rs. in mn) As at 30.09.2022 As at 31.03.2022 ASSETS Financial Assets (a) Cash and cash equivalents 343.81 947.33 (b) Bank Balance other than (a) above 3,644.24 3,181.25 (c) Derivative financial instruments - 0.35 (d) Stock in trade (Securities held for trad
Slide 19: Consolidated Balance Sheet: Liabilities and Equity
18 CONSOLIDATED BALANCE SHEET Particulars (Rs. In mn) As at 30.09.2022 As at 31.03.2022 LIABILITIES AND EQUITY LIABILITIES Financial Liabilities (a) Derivative financial instruments 4.31 (b) Payables 1,465.36 1,366.57 (c) Borrowings (other than debt securities) 244.26 109.91 (d) Deposits 306.50 287.
Slide 20: Consolidated Financials - PAT Mix
19 CONSOLIDATED FINANCIALS - PAT MIX (in Mn) QoQ% YoY % % Q2FY23 Q1 FY23 Change Q2 FY22 Change 6M FY23 6M FY22 Change a) Capital Markets 37 34 9 26 42 71 81 (12) (Broking, Distribution & IB) b) Asset Management 9 1 800 7 29 10 18 (44) c) Others 15 11 36 61 (75) 26 93 (72) Q2 FY 23 Profit/(Loss) Afte
Slide 21: Segment Performance (Rs. Mn)
20 SEGMENT PERFORMANCE (Rs. Mn) QoQ% YoY % % Q2FY23 Q1 FY23 Change Q2 FY22 Change 6M FY23 6M FY22 Change Segment Revenue Advisory, Transactional & Other 537 519 3 702 (24) 1,056 1,203 (12) Related Activities Financing and Investment Activities 31 14 121 37 (16) 45 80 (44) Income from Operations 568
Slide 22: Institutional Equities
21 INSTITUTIONAL Q2 FY 23 EQUITIES
Slide 23: Conferences in Q2: Emkay Confluence 2022
22 CONFERENCES IN Q2 Emkay Institutional Equities organized its Emkay Confluence 2022 from 10th- 12th August, which was attended by 132 146 489 Q2 FY 23 companies funds individual participants and the 3-day conference resulted in nearly 2,312 meetings
Slide 24: Other Initiatives
23 Other Initiatives During Q2 FY23 Transacted the Institutional Equities team held a block of nearly 3 mn shares in Advanced Enzymes, approximately 2.75% of the company, Q2 FY 23 11 67 with Nalanda India Equity Fund roadshows expert and raising their stake in the client calls company to nearly 9%.
Slide 25: Asset Management
24 ASSET MANAGEMENT Q2 FY 23 PMS & AIF vertical (Emkay Investment Managers Ltd.)
Slide 26: Q2 FY23 Highlights
25 Q2 FY23 HIGHLIGHTS 01 02 New Strategy Launched Distribution of Proceeds Q2 FY 23 EIML launched series V of its highly successful Emkay Emerging Stars Fund (EESF) AIF Emkay Emerging Stars Fund. Series V is a announced the third round of distribution of Flexi cap strategy focused on manufacturing F
Slide 27: Investment Banking
26 INVESTMENT Q2 FY 23 BANKING
Slide 28: Key Highlights
27 KEY HIGHLIGHTS INR 800 mn INR 1,700 mn PE Funding in promoter block Series E Q2 FY 23 01 02
Slide 29: Wealth Management
28 WEALTH Q2 FY 23 MANAGEMENT
Slide 30: Wealth Management
29 WEALTH MANAGEMENT In less than 3 years Emkay Wealth emerged from a start-up wealth business to operating in 9 locations Managing INR.21,382 mn under MF Advisory & Distribution Undertakes regular and stringent monitoring of portfolios Tied up with Stockal to provide clients the option of investing
Slide 31: Key Highlights
30 KEY HIGHLIGHTS AUD GROWTH Branches No. of AUD 21,382 20,696 20,489 Clients 19,816 19,028 18,735 18,496 18,304 19,032 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 10 1,717 21,382 Mn No of Clients ASSETS Assets REVENUE Q2 FY 23 1717 1604 Mutual Fund 55% 1529 1350 Inhouse
Slide 32: Technology Edge
31 TECHNOLOGY Q2 FY 23 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 across the continuous improvisations in performance network • New hyper-converge platform improvising the 01 capacity in global sta
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 real- • Multiple trading solutions deployed to offer • Client Relation with branches, business
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 Integrations in Back office software for Banks, KYC & Ops • Ruggedization of key backend & frontend services with regular hardening of platforms and pe
Slide 37: Corporate Overview
36 CORPORATE Q2 FY 23 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 Emkay Insurance Incorporated Brokers Emkay Global Successful Limited Financial Services launch of Emkay rechristened Pte Ltd. in Emerging Stars Fund Emkay Wealth Singapore; Commenced Launched the - Series I, II & III Advisory, Emkay Fincap equity broking Investment to offer Estate and
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 (an Ed-Tech focused on
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 74.49% Promoters & Promoter Group Q2 FY 23 25.51% General Public
Slide 45: Recent Awards & Recognitions
44 RECENT AWARDS & RECOGNITIONS Emkay Global received the Emkay Investment Emkay Emerging Stars Fund, Asiamoney Brokers Poll is the Q2 FY 23 award for Best Research in Managers Ltd. our Category III AIF was largest Asia-focused equity the Commodity Segment awarded for services provider poll. awarded
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), Q2 FY 23 Mumbai - 400028.
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