ICICI Securities - Business Presentation...ICICI Securities has built an enviable franchise over the...

Business

Presentation

September 2019

Safe harbor

2

Except for the historical information contained herein, statements in this release which contain words or

phrases such as 'will', ‘would’, ‘indicating’, ‘expected to’, etc., and similar expressions or variations of such

expressions may constitute 'forward-looking statements'. These forward-looking statements involve a

number of risks, uncertainties and other factors that could cause actual results, opportunities and growth

potential to differ materially from those suggested by the forward-looking statements. These risks and

uncertainties include, but are not limited to, the actual growth in demand for broking and other financial

products and services in the countries that we operate or where a material number of our customers reside,

our ability to successfully implement our strategy, including our use of the Internet and other technology, our

growth and expansion in domestic and overseas markets, technological changes, our ability to market new

products, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or

become a party to, the future impact of new accounting standards, our ability to implement our dividend

policy, the impact of changes in broking regulations and other regulatory changes in India and other

jurisdictions as well as other risk detailed in the reports filed by ICICI Bank Limited, our holding company with

United States Securities and Exchange Commission . ICICI Bank and ICICI Securities Limited undertake no

obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

This release does not constitute an offer of securities.

Agenda

• ICICI Securities at a glance

• Industry Overview

• Business Performance

• Strategy

• Financial Results

I-Sec: A Strategic Component of the ICICI Ecosystem

4

• Incorporated in 1995, as JV between ICICI Bank

and JP Morgan

• Promoted by ICICI Bank (79.2% holding)

• ICICI Bank is a leading private sector bank in India

• Consolidated total assets of `12.50 trillion as at June

30, 2019

• Listed on BSE & NSE in India & its ADRs are listed on

the NYSE

• ICICI Bank is also engaged in insurance, asset

management, securities business and private equity

fund management through specialized subsidiaries

• Sole equity securities arm of the ICICI Group

Part of ICICI Group, one of India’s largest financial conglomerates

ICICI Securities has built an enviable franchise over the years

Retail Equities

Distribution

Wealth

Management

Institutional

Equities

Corporate

Finance

• Largest online equity franchise: 4.5 mn clients

• 2nd

largest non - bank mutual fund distributor1

• Leading investment bank in equity capital market; #1 in IPO league table4

• Active across range of advisory transactions

• Wealth management business AUA2

of over ` 800 bn3; amongst leading

wealth franchises

• Scaled up revenue 3 times in last 5 years; well positioned to grow further

Sticky franchise: Over 65% revenue4 contribution by customers who have been with us for more than 5 years, consistently for the last 5 years

5

1. Source: AMFI (MF commission) period FY2019

2. AUA: Assets under administration (including demat held with ICICI bank),

3. Customers having AUA of over 75 lacs

4. IPO, FPO, InvIT, REIT period Q1-2020, Source: Prime database

5. Only retail broking revenue considered

Governance

6

Director Profile

Mr. Vinod Kumar Dhall, Chairman (Independent Director)

He is on the Board of Directors of a number of leading companies, and is/has been a member of various juries for

awards in areas like corporate social responsibility and corporate governance.

He has been a Director on our Board since October 28, 2014.

Mr. Ashvin Parekh, Independent Director

He is a member of the Institute of ICAI. He is currently a director on the board of ICICI Lombard General Insurance

Company Limited and ICICI Securities Primary Dealership Limited and a designated partner of Ashvin Parekh

Advisory Services LLP.

He has been a Director on our Board since August 25, 2016.

Mr. Subrata Mukherji, Independent Director

He was the Chairman of the Board of Directors of ICICI Securities Primary Dealership Limited from August 2007 to

May 2009 and the Managing Director and Chief Executive Officer of our Company from August 2007 to January

2009.

He has been a Director on our Board since November 29, 2017.

Governance

7

Director Profile

Ms. Vijayalakshmi Iyer, Independent Director

She holds a post-graduation degree in Commerce and Economics from University of Mumbai, Fellowship of CAIIB

of Indian Institute of Banking and Finance. She has previously served as an Executive Director of Central Bank of

India and the Chairperson and Managing Director of Bank of India.

She has been a Director on our Board since November 29, 2017.

Mr. Mr. Anup Bagchi, Additional Director (Non-Executive Director)

He is an Executive Director on the Board of ICICI Bank Limited (‘the Bank’) since February 1, 2017. Prior to this, Mr.

Bagchi was the Managing Director & CEO of ICICI Securities Limited. Under his leadership, ICICI Securities Limited

won several prestigious awards in the financial services space. He is a member of RBI’s Expert Committee on

Micro, Small & Medium Enterprises and of SEBI’s Committee on Financial and Regulatory Technologies (CFRT)

among others.

Mr. Pramod Rao, Additional Director (Non-Executive Director)

He joined ICICI Bank Limited as its Group General Counsel on August 16, 2018 and oversees the legal function for

the ICICI group. Mr. Rao is also a member of the Board of Directors of ICICI Prudential Trust Limited and ICICI

Trusteeship Services Limited. He also serves as a member of the Legal & Banking Operations Committee of Indian

Banks’ Association (lBA) and of the National Committee for Regulatory Affairs constituted by the Confederation of

Indian Industry (CII).

He has been a Director on our Board since October 11, 2018.

Experienced Senior Management Team

8

Vijay Chandok

Managing Director & Chief Executive

Officer

Ajay Saraf

Executive Director

Vishal Gulechha

Executive Vice President

Equity Product Group, Online Advisory

Group & Channel Sales

Anupam Guha


PWM & Equity Advisory Group

26+

[ ]# of Experience

Yagnesh Parikh

Chief Technology Officer

Ripujit Chaudhuri


Risk & Compliance & Special Projects

Ketan Karkhanis

Senior Vice President

Select, Premier, Equity Relationship

Services, Active Trader Services & Asset

Harvinder Jaspal

Chief Financial Officer

26+

28+

19+

34+

27+

24+

17+

Risk management framework

9

Market risk and implied market risk

• Corporate Investment and Investment Policy

stipulates product parameters, margins and other risk

limits

Credit risk

• Receivables primarily from clearing organisation;

client receivables backed by collateral

Liquidity risk

• Liquidity risk management policy lays down

framework including monitoring of asset liability gaps

Operational risk

• Policies formulated to address operational,

outsourcing, fraud risk

Information Technology (IT) /Cyber security risk

• IT Risk Management Policy, Cyber Security and Cyber

Resilience Policy lay down framework for managing

IT and cyber risk

Risk Governance Structure Key risks & management framework

Objective of risk management framework

• to ensure risks are identified, measured,

mitigated

• policies, procedures and standards are

established to address these risks

• systematic response in case of crystallisation of

risks

Board oversees risk management & has constituted

Risk Management Committee which frames/reviews

risk management policies and controls

Three lines of defence:

• First line: operational departments

• Second line: specialised departments

(risk/compliance)

• Third line: Internal/external audit

Large growing franchise

Active clients (mn)

Operational accounts and active clients grew of 12% CAGR

Operational accounts (mn)

2.5

4.4

FY-14 FY-19

0.7

1.3

FY-14 FY-19

10

Operational accounts is the total customer base with the company

Overall active clients are clients active with us during that period across all product categories

Market share

Growing market share across categories

Equity & Derivative

market share (%)

7.5

4.14.5

7.7

8.6 8.5

Equity Derivative Blended

FY14 FY19

MF AuM & Revenue market share (%)

1.1

2.9

1.9

4.0

MF AuM MF Revenue

FY 14 FY 19

11

Source AMFI, SEBI

Equity & derivative market share is the share of Average Daily Turnover, MF market share including equity & debt

Equity Capital Markets

Strong position in equity capital market (ECM)

IPOs market share

(amount raised)ECM market share

(amount raised)

Advisory market share

(amount raised)

30%

41%

FY-14 FY-19

4%

7%

FY-14 FY-19

12

0%

38%

FY-14 FY-19

Source Prime database, Venture intelligence

ECM: IPO/FPO/InvIT/REIT, QIP/IPP, Rights issue, Offer for sale

Financial performance

High Free Cash Flow generating business model with operating leverage

Revenue PAT Dividend*

13

8,123

17,270

FY-14 FY-19

908

4,907

FY-14 FY-19

400

3,028

FY-14 FY-19

*Dividend ex Dividend distribution tax

ROE consistently above 50% for the last 5 years

Agenda




• Strategy


Rapidly transforming Digital India

• 1.2bn Aadhaar enrollment

• 740m+ direct benefit transfer transactions

• 10mn+ businesses on online GST network

• Increasing volume of quality data available across

various agencies

• Developments in

• Data Sciences & Analytics

• Machine learning/ Artificial Intelligence technologies

• Artificial Intelligence

• 1.2bn mobile phones in India

• Smartphone penetration at 26.2% in 2018

• Expected to be 66% by FY222

• 0.6bn internet subscribers in India

• Second only to china

• Mobile data consumption at 8.3gb per month per user

• China at 5.5gb

• Digital payment transactions at 15bn up from 5bn FY14

• Mobile trading3

at 10% in 2018 from 1% in 2014

• Data costs are down by more than 95% since 2013

• Download speed increased 4x between 2014 and 2017

High device penetration Affordable access spurring adoption

Digital Data infrastructure Policy led systematic push

15

Source: McKinsey, 2. CRISIL, 3. SEBI (Mobile as a mode of trading in cash market at NSE)

Financialisation and equitisation of savings in India

16

Growing incremental share of financial

investments in shares & debentures1

High growth across financial asset

classes2

In ` trillion

Rising household financial ssavings

165 131

95

149 149 116

200 213

146

348

259

162

491

289

179

Equity +

Derivative ADTO

MF AUM Insurance

Premium (FY)

FY-15 FY-16 FY-17

FY-18 FY-19

Source: RBI, IRDA, AMFI, NSE, BSE, EIU; ADTO: Average daily turnover; 1. Include investment in shares and

debentures of credit / non-credit societies and investment in mutual funds (other than Specified Undertaking of

the UTI) (Source: RBI, MOSPI) 2. Indexed to 100 in FY 14

6.47.3

8.3 8.8

11.19.7

11.3

31.1%32.9%

36.5%36.1%

44.9%

37.0%

38.4%

FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18

Financial Savings

Financial Savings as a % of Household

Savings

1.8%1.6% 1.6% 1.6%

3.0%2.6%

8.0%

FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18

Opportunity: Under-penetration across all segments

17

Debit card, 861mn1

MF Folios, 85mn3

Large headroom across product

categories

1. Source: RBI, FY18 2. IRDAI, FY18, 3. AMFI, Aug 2019 4. SEBI bulletin, Aug 2019 (18.8mn at NSDL and 18.3mn at CDSL)

Life Insurance policies, 331mn2

Demat accounts, 37mn4

Industry trends: Equity secondary market

18

Growing retail participationRise in demat accounts (In million)

Growing share of trading volume (` billion) Secondary market volume growth led by derivative volume#

In ` billion

213 202 244 338 1,368 1,525 2,409 4,143 6,251352

2325

28

32

36 37

FY-15 FY-16 FY-17 FY-18 FY-19 Q1-FY20

54% 52%58% 58% 56% 55%

30%37%

44% 46% 47% 46%

FY-15 FY-16 FY-17 FY-18 FY-19 Q1-FY20

Equity Derivative

364

68% 68% 66% 70% 74% 75%

FY-15 FY-16 FY-17 FY-18 FY-19 Q1-FY20

Delivery ADTO Non-Delivery ADTO

8,569

88% 89% 92% 93% 96% 97%

FY-15 FY-16 FY-17 FY-18 FY-19 Q1-FY20

Equity Derivative

Source: NSE, BSE, SEBI, NSDL, CDSL; ADTO – Average daily turnover

#Excluding proprietary volume

Equity market ADTO Total market ADTO ex proprietary

Institutional equities: DIIs becoming more relevant

19

Holding % of market capitalisation Equity Flow in USD billion

Derivative ADTO in (` billion)Equity ADTO in (` billion)

44 43 47

54 52 55

10 1115

27 27 26

FY-15 FY-16 FY-17 FY-18 FY-19 Q1-FY20

FII DII

259 319 523

767

1,310

2,293

6 12 15 31 40 38

FY-15 FY-16 FY-17 FY-18 FY-19 Q1-FY20

FII DII

10.0%

15.0%

20.0%

25.0%

Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19

FPIs Domestic institutional

Source: NSDL, SEBI, Bloomberg, I-Sec research

18.1

-1.5

8.4

3.41.5

3.1

-3.6

12.3

4.5

17.7

10.3

0.7

FY-15 FY-16 FY-17 FY-18 FY-19 Q1-FY20

FPI DII

Saving landscape: Increasing managed equity

20

Mutual Fund (Exit) AUM (` trillion) Growing share of beyond top 35 cities in MF AUM

More systematic retail participation through SIP Mutual Fund folio

SIP flow (` billion) Folio Count (million)

10.812.3

17.5

21.4

23.8 24.3

FY-15 FY-16 FY-17 FY-18 FY-19 Q1-FY20

40 4248

55

71

82

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19

92% 92% 91% 91%82% 80%

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19

Top 35 Others

439

672

927

245

FY-17 FY-18 FY-19 Q1-FY-20

Source: AMFI

Protection

21

Life Insurance premium1 (` trillion) Health Insurance premium

1 (` trillion)

Source: IRDA

3.1 3.3

3.7

4.24.6

FY-14 FY-15 FY-16 FY-17 FY-18

0.170.20

0.24

0.30

0.37

FY-14 FY-15 FY-16 FY-17 FY-18

Wealth and Asset creation

22

PMS AUM1

(` trillion) Gross Bank Credit2 (` trillion)

1. Source: SEBI 2. Source: RBI

0.70.8

1.1

1.6

1.7

0.50.6

0.8

0.9

1.1

FY-15 FY-16 FY-17 FY-18 FY-19

Discretionary Non-Discretionary

66.5

71.5

77.3

FY-16 FY-17 FY-18

Agenda




• Strategy


Equities business

Blended market share

4.5%

4.7% 6

.6%

7.8%

9.0%

8.5%

9.2%

7.4%

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

Derivative market share

4.1%

4.4%

6.5% 7.8%

9.1%

8.6%

9.3%

7.4%

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

I-sec ADTO (` billion)

44

65 10

1 18

7

37

2

53

3

46

6

64

1

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

Equity market share

7.5%

7.4%

7.4%

7.1% 7.4% 7

.7%

7.4%

8.1%

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

24

Retail equities business

Revenues (` million)

Leading equity franchise in India

3-in-1 Platform

• Providing seamless experience

• Mutual beneficial relationship with ICICI Bank

• Presence in 3,7501+ ICICI Bank branches

• 3-tier disaster recovery system

• Fully integrated risk system

• Real-time tracking of trigger prices

• Over 95% broking transactions performed online

4,6

21

7,0

27

6,0

70

7,0

16

9,1

74

8,1

54

2,0

24

1,8

93

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

FY14 to FY19

CAGR 12%

25

1. As at March 31,2019

Institutional Equities business

Revenues (` million)

Institutional equities – Growing scale

33

9 52

7

53

7 74

0

1,0

69

1,1

74

27

4

30

6

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

FY14 to FY19

CAGR 28%

• Significant India coverage supplemented by

Asia Pacific and USA

• Growing Direct market access business

• Research

• coverage of 249 Indian stocks

• 37 member research team

• Leading procurement in IPOs, QIPs, OFSs and

Block deals

26

Distribution

Strong online presence aided by pan India distribution

• Presence in over 75+ cities with ~193 branches

• 1,300+ relationship managers and product specialists

• Wealth management solutions for HNIs/Family offices,

315+ member team

• Over 700+ cities/towns with 7,500+ sub-brokers,

authorized persons, IFAs and IAs

• Significant presence in the Tier-II and Tier-III cities

Revenues (₹ million)

1,8

67

2,6

69

2,5

41 3,4

97

4,6

65

4,6

35

1,1

64

98

6

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

FY14 to FY19

CAGR 20%

Distribution as % of total revenues increased from 23% in FY14 to 27% in FY19

27

Distribution

MF AUM (` billion)

2nd

Largest non bank Mutual Fund distributor

Mutual Funds revenue (` million)

78

9

1,5

40

1,1

17

1,6

57

2,8

47

2,6

95

77

3

56

2

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

FY14 to FY19

CAGR 28%

76

12

0

16

0 21

2

30

2

34

7

34

3

36

8

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

FY14 to FY19

CAGR 36%

28

Distribution

Non MF distribution revenue (` million)

Enhanced focus on non Mutual Fund distribution; up 9% in Q1-FY20

1,0

78

1,1

28

1,4

24

1,8

39

1,8

18

1,9

40

39

1

42

4

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

FY14 to FY19

CAGR 12%

Investments

• IPOs, OFS, public bond offerings

• 3rd party corporate fixed deposits

• National Pension System

Protection

• Life /General Insurance

Assets/Wealth creation

• Loan products referrals

• Portfolio management services

• Alternate investment funds

YoY growth 9%

Launched Digital loans; ~ 0.5 million customers pre-approved for instant loan

29

Corporate Finance

Revenue (` million)

• Strengths

• Sector expertise

• Corporate relationships

• Strong distribution franchise

• Expected to benefit from the robust deal

pipeline

Leading Investment Bank in India

59

3

63

8

83

4

1,1

98

1,4

40

99

1

32

3

16

7

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

FY14 to FY19

CAGR 11%

30

ECM market share by amount raised increased from 30% in FY14 to 41% in FY19

Corporate Finance: Q1-FY20 snapshot

• IPOs/InvIT: Indiamart Intermesh Ltd, Oriental

Infratrust

• OFS: L&T Technology Services

• Advisory: Dvara Kshetriya Gramin, Fuji Electric,

Music broadcast ltd

• Ranked 3rd

among domestic financial advisors by

value and ranked 2nd

by number of deals in merger

market league table

• 3 M&A deals in Q1-FY2020 vs 2 deal in Q1-FY2019

• Ranked 1st

in IPOs1

league table

• Robust IPO pipeline of over ` 1802

bn

• Buyback: SQS India BFSI Ltd.

• Rights: Bharti Airtel Ltd.

• Block deal: Shriram Transport Finance Co.

1. IPOs: IPO/FPO/InvIT/REIT 2. Source: SEBI, Prime database, 3. ECM: IPO/FPO/InvIT/REIT, QIP/IPP, Rights issue

IPO Consolidation product

Advisory Major deals

31

Agenda




• Strategy


Changing nature of competition and regulations

Existing Emerging

Regulatory direction

• Emphasis on lowering of intermediary margins to enhance customer returns

• Greater focus on transparency and risk management

• Increased compliance cost

Traditional

investment houses

Branch and sub-broker

driven outreach,

Diversified presence

into NBFC/HFCs/AMCs

and wealth

Bank affiliated

investment houses

Focused on leveraging

synergies with the bank

New generation

discount brokers

Low barriers to entry

Potential emergence

of ecosystem players/

techfins

Product expansion, not

fundamentally a

financial player

33

Working towards broadening the positioning

To be seen as comprehensive financial solutions provider for the affluent Indian

Powered digitally

Imperatives:

• Broad basing business model

• Diverse and granular revenue stream

Assets &

Loans

Protection

Wealth &

Investments

34

Strategy: Strengthening the core and building for the future

A. Ramping up scale and value

by augmenting and aligning

growth engines

B. Monetize client value

D. Robust technology and digital

agility

E. Operating leverage

through cost efficiency

C. Enhancing customer

engagement

35

A. Ramping-up scale & value by augmenting & aligning growth

engines

Business

partners

Broad base

growth

• Digitally offer B2B2C

proposition to scale

business partners:

• On-boarding of partner

• On-boarding of clients

by the partner

• Client management and

platform support

Digital on-

boarding

Modernise and

scale-up

• Re-engineer

entire on-

boarding

process

Bank win-win

partnership

Better customer quality

and higher activation

• Natural alignment: New

revenue sharing

agreement

• Sourcing focus:

Targeting affluent and

equity affinity client

segments

• Enlarge focus: NRI

36

Progress

9.72

%

9.70

%

9.63

%

9.59

%

9.55

%

9.53

%

9.50

%

9.47

%

9.48

%

9.48%

9.50

%

9.45

%

9.38

%

9.40

%

9.61

%

9.67

%

9.77

%

9.81

%

9.90

%

10

.03

%

Market share1 in active client base (NSE)• Prime launched, well received, ~1 lac

subscriptions as at end Q1-FY20

• New bank arrangement, initial results

encouraging, activation rates up by 40%

Y-o-Y

• 9.0 lac NSE active clients, market share

at 20 month high

• Only player amongst the bank based

and full service investment house to

consistently add active clients

371. Trailing 12 month; Source: NSE

B. Monetize client value

04

03

02

01

Margin trading facility

Scale up of MTF book by extending it on NSE

Creating branded proprietary products

Portfolio Management Services to Private Wealth Clients

Insta digital loans as a new asset class

Digital lending to eligible customers for personal, auto

loan, home loan top-up, credit card, LAS and deposits

Digital Insurance

Ramping up distribution of insurance digitally

• Health, Travel, Auto and Term

Enhancing product choice and product options

ESOP funding

Leveraging ESOP funding to build high quality client

sourcing and enhancing revenue stream

04

05

38

Self directed

Pay per use

Individual stock based

recommendation

Self developed limited

tools

Investment only

Digital based advisory

supplemented by voice RM

Subscription based

Recommendation based on

thematic bundle of stocks

Augmented using fintech

tools

Investment, protection,

loans & deposits

Relationship mgmt.

Onboarding clients

Research connect

Trading strategies

Scope

C. Enhancing engagement for client retention & penetration

Traditional approach New approachClient engagement

39

D. Robust technology and digital agility

Secure, stable and fast system

• Zero downtime

• Avg. response time of 24 ms

• Peak concurrent users ~ 48k

Customer privacy & information security

Robust technology strength

3-tier recovery system and strong

business continuity processes

Open architecture & partnership

• Use API architecture to onboard

fintech partners

• Partner with fintech to offer customer

centric solutions

Increasing use of data analytics

• Infuse new talent

• Infuse new technologies

Digital agility

Improved user experience

• New interface website and mobile

app

40

E. Operating leverage through cost efficiency

• Re-evaluate branch infrastructure cost based on productivity, area efficiency and rentals

• Centralization of certain vertical to optimise infrastructure and manpower cost

• Process re-engineering to optimize acquisition related cost

• Harnessing synergies within teams and business groups to optimize manpower

• Migrating to digital/low touch coverage models

Strong focus on inculcating cost culture to enable identification and

enhance cost efficiency on an on-going basis

41

Agenda




• Strategy


Financials

Revenue diversification (%)

Financial performance

Revenue (` million)

8,12

3

12

,0

95

11

,2

46

14

,0

42

18

,6

10

17

,2

70

4,3

59

4,0

21

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

FY14 to FY19

CAGR 16%

61

%

62

%

59

%

55

%

55

%

54

%

53

%

55

%

39

%

38

%

41

%

45

%

45

%

46

%

47

%

45

%

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

Brokerage revenue Others

43

Financials

Dividend payout (` million)

Consistent dividend payout, high ROE due to asset light model

40

0

1,6

11

1,6

11

2,0

50

3,0

28

3,0

28

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19

FY14 to FY19

CAGR 50%

PAT (` million)

90

8

2,9

39

2,3

87

3,38

6

5,53

5

4,9

07

1,3

38

1,1

38

FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q1-19 Q1-20

FY14 to FY19

CAGR 40%

ROE consistently above 50% for the last 5 years44

Thank you

Consolidated P&L

46

(` million)

Particulars FY-2019 Q1-FY19 Q4-FY19 Q1-FY20 Y-o-Y%

Revenue1

17,270 4,359 4,283 4,021 (8) %

Employee benefits expenses 5,545 1,366 1,328 1,274 (7) %

Operating expenses 1253 252 306 245 (3) %

Finance costs2

423 131 100 178 36%

Other expenses2

2477 584 660 564 (5) %

Total Expenses 9,698 2,333 2,394 2,261 (3) %

Profit before tax 7,572 2,026 1,889 1,760 (13) %

Tax expense 2665 688 674 622 (10) %

Profit after tax 4,907 1,338 1,215 1,138 (15) %

Other comprehensive income (OCI) -26 -16 -4 -35 -

Total comprehensive income (TCI) 4,881 1,322 1,211 1,103 (17) %

1. Revenue for Q4-FY19 and Q1-FY20 includes interest on income tax refunds amounting to ` 207mn and ` 148mn respectively.

2. Ind AS116 applicable April 1,2019 led to an increase of ` 156 mn in finance cost and depreciation & reduction of ` 128 mn in other expenses.

MTM loss of ` 108 mn on Dewan Housing Finance Corp. Ltd. Period: Y-o-Y: Q1-FY20 vs Q1-FY19

Segment performance

47

Note –Advisory services includes Financial advisory services such as equity-debt issue management services, merger and

acquisition advice and other related activities

Period: Y-o-Y: Q1-FY20 vs Q1-FY19

(` million)

Particulars FY-2019 Q1-FY19 Q4-FY19 Q1-FY20 Y-o-Y%

Segment Revenue

Broking & commission 15,807 3,967 3,835 3,637 (8)%

Advisory services 991 323 129 167 (48)%

Investment & trading 265 69 112 69 -

Income from operations 17,270 4,359 4,283 4,021 (8)%

Segment Profit before tax

Broking & commission 6,976 1,801 1,757 1,647 -9%

Advisory services 253 170 -122 16 -91%

Investment & trading 137 55 47 -51 -192%

Total Result 7,572 2,026 1,889 1,760 -13%

Balance Sheet : Assets(` million)

48

1. As on 31st

March 2019, settlement obligation pertaining to an offer for sale amounting to ` 17,362 mn were pending for payment 2. Lease

assets capitalised as per Ind AS 116 are being reported as Right of use assets under non-financial assets

ASSETS At Mar 31, 2019 At Jun 30, 2019

Financial assets (A) 43,697 26,645

Cash/Bank and cash equivalents1

31,486 16,634

Securities for trade 2,563 2,679

Receivables 4,770 1,243

Loans 4,033 4,860

Investments 28 28

Other financial assets 817 1,201

Non-financial assets (B) 2,949 5,064

Deferred tax assets (net) 737 680

Right-of-use assets2

- 1,945

Fixed assets, CWIP & Intangible assets 476 508

Current tax assets & other non financial assets 1,736 1,931

Assets (A+B) 46,646 31,709

Balance Sheet : Equity and Liabilities

(` million)

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1. As on 31st

March 2019, settlement obligation pertaining to an offer for sale amounting to ` 17,362 mn is pending for

payment. 2. Lease liabilities are being capitalised in financial liabilities as per Ind AS116 applicable from April 1, 2019

EQUITY AND LIABILITIES At March 31, 2019 At June 30, 2019

Financial liabilities (A) 30,182 14,856

Derivative financial instruments 17 2

Payables1

23,362 3,172

Debt securities 4,473 7,453

Lease liabilities2

- 1,909

Deposits & Other financial liabilities 2,330 2,320

Non-financial liabilities (B) 5,991 5,250

Equity (C) 10,473 11,603

Equity share capital 1,611 1,611

Other equity 8,862 9,992

Equity and Liabilities (A+B+C) 46,646 31,709

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