Emkay Global Financial Services Limited · NSE:EMKAY
Emkay Global Financial Services — Q3 FY23 Earnings Presentation
50 slides from Emkay Global Financial Services's earnings presentation, Jan 30, 2023
Slide 1: Exchange filing cover letter for investor presentation
Your success is our success 30.01.2023 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 Q3 FY23
1 INVESTOR Q3 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 Q3 FY23
3 BUSINESS PERFORMANCE Q3 FY 23 Q3 FY23
Slide 5: Key Performance Indicators: Q3 FY23 at a Glance
4 KEY PERFORMANCE INDICATORS EMKAY: Q3 FY23 AT A GLANCE 2,21,184 19,492 5,984 1,95,708 Total Assets Wealth Assets PMS & AIF AUM DP/Broking Assets (in million) (in million) (in million) (in million) 23%YoY Growth 10%YoY Growth (28)%YoY D-growth 28%YoY Growth 563 47 87 86 Revenue PBT PAT Total Compreh
Slide 6: Key Highlights of Q3 FY23
5 KEY HIGHLIGHTS OF Q3 FY23 Consolidated revenues Consolidated PAT Emkay Konnect Emkay Cresta, Singapore decreased by 3% QoQ increased by 43% The Institutional Equities team organized Emkay A two-day conference Emkay Cresta was organized to Rs. 563 mn QoQ to Rs. 87 mn Konnect (Festive Channel Check
Slide 7: Revenue Mix (Rs. Mn)
6 REVENUE MIX (Rs. Mn) 2,500 Broking & Allied Services Asset Management 2,000 Wealth Management Others including Treasury 993 1,500 513 54 85 101 1,000 90 490 Q3 FY 23 500 147 1065 211 974 39 21 29 23 29 28 365 392 300 - Q3 Q2 Q3 9M FY23 9M FY22 FY 23 FY 23 FY 22
Slide 8: Broking Revenue
7 BROKING REVENUE (Rs. Mn) In the third 9% quarter, revenue from broking and 24% 1,065 allied services 18% 974 18% fell by 18% QoQ Q3 FY 23 QoQ and 392 24% YoY to 24% 365 300 Rs.300 mn YoY Q3 Q2 Q3 9M FY23 9M FY22 FY 23 FY 23 FY 22
Slide 9: Asset Management Revenue
8 ASSET MANAGEMENT REVENUE (Rs. Mn) In the third 11% quarter, revenue 3% from asset 3% 90 101 management fell 3% QoQ 3% QoQ and Q3 FY 23 by 3% YoY to 28 29 29 Rs.28 mn 3% YoY Q3 Q2 Q3 9M FY23 9M FY22 FY 23 FY 23 FY 22
Slide 10: Wealth Management Revenue
9 WEALTH MANAGEMENT REVENUE (Rs. Mn) In the third 14% 56% quarter, revenue from wealth 40% 85 management fell 40% QoQ by 40% QoQ Q3 FY 23 54 39 and increased 23 14% by 14% YoY to 21 YoY Rs.23 mn Q3 Q2 Q3 9M FY23 9M FY22 FY 23 FY 23 FY 22
Slide 11: Others Including Treasury Revenue
10 OTHERS INCLUDING TREASURY REVENUE (Rs. Mn) In the third 48% quarter, revenue 57% from others 44% including treasury 44% QoQ increased Q3 FY 23 993 44% QoQ and 490 513 fell 57% YoY to 57% 211 YoY Rs.211 mn 147 Q3 Q2 Q3 9M FY23 9M 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) 805 787 1,60,447 722 708 680 1,31,980 621 641 613 602 570 1,08,139 95,158 71,931 59,958 41,857 45,357 28,481 19,821 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 Q3 FY23 Q2 FY 21Q3 FY
Slide 13: Customer Assets (Rs. in Mn)
12 CUSTOMER ASSETS (Rs. in Mn) Total Assets DP/Broking Assets Wealth Assets 2,21,184 2,14,173 1,93,075 1,85,974 1,89,0221,95,708 18,578 19492 1,74,8161,79,398 17,954 17,800 1,68,1371,62,126 17,237 16,638 16,224 15,924 16,362 1,53,647 1,48,6391,53,266 1,43,318 1,34,349 1,29,738 1,20,378 1,11,525 Q3 F
Slide 14: Financial Performance Q3 FY23
13 FINANCIAL PERFORMANCE Q3 FY 23 Q3 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.) Q3 FY23 563 47 87 3.55 88 3% 40% 43% 43% 4% Q2 FY23 580 78 61 2.48 84 Q3 FY22 932 256 193 7.84 83 40% 82% 55% 55% 6% Q3 FY 23 9M FY23 1,663 198 195 7.89 88
Slide 16: Consolidated Profit & Loss Statement
15 CONSOLIDATED PROFIT & LOSS STATEMENT QoQ% YoY % % Particulars (Rs. in mn) Q3FY23 Q2 FY23 Change Q3 FY22 Change 9M FY23 9M FY22 Change Revenue Income from Operations 543 566 (4) 926 (41) 1,616 2,191 (26) Other Income 20 14 43 6 233 47 22 104 Total Revenue 563 580 (3) 932 (40) 1,663 2,214 (25) Expe
Slide 17: Consolidated Profit & Loss Statement (continued)
16 CONSOLIDATED PROFIT & LOSS STATEMENT QoQ% YoY % % Q3FY23 Q2 FY23 Change Q3 FY22 Change 9M FY23 9M FY22 Change Particulars (Rs. in mn) Share of Profit/(Loss) of Associates 1 (2) 150 1 - 2 (7) 129 Profit for the Period/Year 87 61 43 193 (55) 195 385 (49) Q3 FY 23 Other Comprehensive Income (1) 2 (1
Slide 18: Consolidated Balance Sheet: Assets
17 CONSOLIDATED BALANCE SHEET Particulars (Rs. in mn) As at 31.12.2022 As at 31.03.2022 ASSETS Financial Assets (a) Cash and cash equivalents 349.58 947.33 (b) Bank Balance other than (a) above 3,104.11 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 31.12.2022 As at 31.03.2022 LIABILITIES AND EQUITY LIABILITIES Financial Liabilities (a) Derivative financial instruments 3.38 - (b) Trade Payables 1,453.02 1,366.57 (c) Borrowings (other than debt securities) 134.70 109.91 (d) Deposits 221
Slide 20: Consolidated Financials - PAT Mix
19 CONSOLIDATED FINANCIALS - PAT MIX (in Mn) QoQ% YoY % % Q3FY23 Q2 FY23 Change Q3 FY22 Change 9M FY23 9M FY22 Change a) Capital Markets 72 37 95 188 (62) 144 320 (55) (Broking, Distribution & IB) b) Asset Management 4 9 (56) 2 100 14 20 (30) c) Others 11 15 (27) 3 267 37 45 (18) Q3 FY 23 Profit/(Lo
Slide 21: Segment Performance (Rs. Mn)
20 SEGMENT PERFORMANCE (Rs. Mn) QoQ% YoY % % Q3FY23 Q2 FY23 Change Q3 FY22 Change 9M FY23 9M FY22 Change Segment Revenue Advisory, Transactional & Other 544 550 911 (1) (40) 1,600 2,114 (24) Related Activities Financing and Investment Activities 19 30 21 (37) (10) 63 100 (37) Income from Operations
Slide 22: Institutional Equities
21 INSTITUTIONAL Q3 FY 23 EQUITIES
Slide 23: Conferences in Q3: 383 Meetings
22 CONFERENCES IN Q3 Organized by Emkay Institutional Equities 96 152 Funds Individuals 16 383 Meetings Distributors/ Dealers Q3 FY 23 /Experts 16 FM 5 MD/ Partner/ 131 Director/ CIO Analyst
Slide 24: Conferences in Q3: 372 Meetings
23 CONFERENCES IN Q3 Organized by Emkay Institutional Equities 68 102 Funds Individuals 11 372 Meetings MD/ Partner/ Director/ CIO/ 14 Q3 FY 23 HOE/ HOR Companies 18 73 FM Analyst
Slide 25: Conferences in Q3
24 CONFERENCES IN Q3 Organized by Emkay Institutional Equities 32 11 Clients Corporates Q3 FY 23 50 35 1*1 Group Meetings Meetings
Slide 26: Other Initiatives
25 Other Initiatives During Q3 FY23 the Institutional Equities team held Q3 FY 23 9 44 roadshows expert and client calls
Slide 27: Asset Management
26 ASSET MANAGEMENT Q3 FY 23 PMS & AIF vertical (Emkay Investment Managers Ltd.)
Slide 28: Q3 FY23 Highlights
27 Q3 FY23 HIGHLIGHTS 01 02 03 Successfully returned funds Received commitments On boarded at Q3 FY 23 to all investors in of nearly Yes Bank as our Emkay Emerging distribution partner Rs. 1250 mn Stars Fund - AIF I, II & III for AIF V in AIF V within the stipulated time
Slide 29: Investment Banking
28 INVESTMENT Q3 FY 23 BANKING
Slide 30: Key Highlights
29 KEY HIGHLIGHTS INR 180 mn INR 1700 mn PE investment promoter block in Silverpush in Route Mobile Limited Q3 FY 23 01 02
Slide 31: Commodities & Currency
30 COMMODITIES Q3 FY 23 & CURRENCY
Slide 32: Award for Best Research in the Commodity Segment
31 AWARD Emkay Global received the award for Best Research in the Commodity Segment for Q3 FY 23 FY2022, by MCX
Slide 33: Wealth Management
32 WEALTH Q3 FY 23 MANAGEMENT
Slide 34: Wealth Management
33 WEALTH MANAGEMENT In less than 4 years Emkay Wealth emerged from a start-up wealth business to operating in 10 locations Managing INR 22,364 mn under MF Advisory & Distribution Undertakes regular and stringent monitoring of portfolios Tied up with Stockal to provide clients the option of investin
Slide 35: Key Highlights
34 KEY HIGHLIGHTS AUD GROWTH Branches No. of AUD Clients 20,696 20,489 19,816 21,382 22,364 18,496 18,304 18,735 19,032 Q3 FY21Q4 FY21Q1 FY22Q2 FY22Q3 FY22Q4 FY22Q1 FY23Q2 FY23Q3 FY23 10 1,813 22,364 Mn No of Clients ASSETS Assets REVENUE Q3 FY 23 1,813 1,717 1,604 1,529 Mutual Fund 56% 1,350 Inhous
Slide 36: Technology Edge
35 TECHNOLOGY Q3 FY 23 EDGE
Slide 37: Technology Innovation, Improving Business Efficiency
36 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 38: Infrastructure & Security Aspects
INFRASTRUCTURE & SECURITY ASPECTS 37 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 39: Technology for Business
38 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 40: Digital First Approach
39 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 41: Corporate Overview
40 CORPORATE Q3 FY 23 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 Estate & Succession Planning
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 Q3 FY 23 25.51% General Public
Slide 49: Recent Awards & Recognitions
48 RECENT AWARDS & RECOGNITIONS Emkay Global received the Emkay Investment Emkay Emerging Stars Fund, Asiamoney Brokers Poll is the Q3 FY 23 award for Best Research in Managers Ltd. our Category III AIF was largest Asia-focused equity the Commodity Segment awarded as ‘Most awarded for services provi
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), Q3 FY 23 Mumbai - 400028.
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