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Business
Presentation
December 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 & 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 `12.9 trillion as at Sept 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: 4.6 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% revenue5 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. Clients having assessed profile and minimum assets of 75 lacs with us (equity assets are maintained in Demat with ICICI Bank)
4. IPO, FPO, InvIT, REIT period H1-2020, Source: Prime database
5. Only retail broking revenue considered
Governance Structure
6
Board of Directors1
Corporate Social Responsibility Committee3
IT Risk and Information/Cyber Security Committee
Nomination & Remuneration Committee 3
Risk Management Committee (RMC)3
Audit Committee 2
Stakeholders Relationship Committee3
1. Board of Directors
comprises four
Independent
Directors, two non-
executive directors
and two executive
directors
2. Audit Committee is
chaired by an
Independent Director
and the other
members of the
Committee are non-
executive Directors
including two
Independent Directors
3. Chaired by an
Independent Director
Chairman of the board is an independent non-executive director
Governance
7
Director Profile
Mr. Vinod Kumar Dhall, Chairman (Independent Director)
He is an Independent Director and Chairman of the Board of Directors of our Company. He was in the Indian
Administrative Service (IAS) where he worked at very high levels in government, at policy as well as executive
Levels. 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 Executive Director of ICICI Limited from 2001 to 2002. Post merger, he was the Executive Director of ICICI Bank
Limited from 2002 to 2004. He has been the Managing Director and Chief Executive Officer of ICICI Securities Limited from
2004 to 2007. The name of ICICI Securities Limited was changed to ICICI Securities Primary Dealership Limited in 2007. 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 also
worked with ICICI Foundation for Inclusive Growth as Co-President from September 2010 to March 2011 and as President
from April 2011 to July 2014. He has been a Director on our Board since November 29, 2017.
Governance
8
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 was also a Whole Time Member (Finance and Investment) in the
IRDA I. She has been a Director on our Board since November 29, 2017.
Mr. Anup Bagchi, Additional Director (Non-Executive Director)
He is an Executive Director on the Board of ICICI Bank Limited 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.
Risk management framework
9
Market risk and implied market risk
• Corporate Risk and Investment Policy (CRIP) stipulates
product parameters, margins and other risk limits
Credit risk
• Receivables primarily from clearing organisation;
client receivables backed by collateral
• CRIP stipulates limits for treasury investments / FDs
Liquidity risk
• Liquidity risk management policy lays down
framework including monitoring of asset liability gaps
Operational risk
• Policies formulated to address operational,
outsourcing, fraud and business continuity risk
Information Technology (IT) /Cyber security risk
• IT Risk Management Policy, Cyber Security and Cyber
Resilience Policy and Information Security
Management 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
Yagnesh Parikh
Chief Technology Officer
Ripujit Chaudhuri
Executive Vice President
Risk & Compliance & Special Projects
Kedar Deshpande
Executive Vice President
Retail Distribution, Product & Services
Group
Harvinder Jaspal
Chief Financial Officer
Experienced Senior Management Team
10
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
Executive Vice President
PWM & Equity Advisory Group
26+
[ ]Number of years of experience
26+
28+
19+
34+
27+
23+
17+
Strong financial performance over the years
High Free Cash Flow generating business model with operating leverage
Revenue PAT Dividend*
11
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
Large growing franchise
Active clients (mn)
Operational accounts and active clients growth of 12% CAGR
Operational accounts (mn)
2.5
4.4
FY-14 FY-19
0.7
1.3
FY-14 FY-19
12
Includes only retail clients
ICICI Securities Today
Growing client base and engagement
Operational accounts,
4.6 mn1
Ever traded,
2.8 mn2
Overall Active
1.3 mn3
NSE Active,
0.9 mn4
1. Operational accounts is the total client base with the company
2. Ever traded are the clients who have transacted at least once on our platform
3. Overall active clients are the clients who have transacted at least once during trailing 12 months across all product categories
4. NSE active client base are the clients who have traded at least once during trailing 12 months
Period: Q2-FY2020 vs Q2-FY2019
• 4.6 million strong base of operational
accounts; up by 9% YoY
• 1.3 million overall active clients, increased by
5% YoY
• 0.9 million NSE active clients, increased by
7% YoY
13
Leading Equity Franchise
Amongst the
Pioneers in
E-Brokerage
Business in
India
Over 92% Mutual fund
transactions performed
online
Over 95% Equity
transactions performed
online
Retail
Focused
Technology
Platform:
ICICIdirect
3-in-1 account, integrates
trading account with
savings bank and demat
accounts held with ICICI
Bank
Providing seamless
experience
3-tier disaster recovery
system
Fully integrated risk
system, real-time tracking
of trigger prices
Significant India coverage
supplemented by Asia
Pacific and USA
Research coverage of 249
Indian stocks by 37
member research team
Growing Direct market
access business
Leading procurement in
IPOs, QIPs, OFSs and Block
deals
Institutional
equities
14
Presence in over 75+ cities with ~187 branches
1,300+ relationship managers and product specialists
Wealth management solutions for HNIs/Family offices,
300+ member team
Over 700+ cities/towns with 8,000+ sub-brokers,
authorized persons, IFAs and IAs
Significant presence in the Tier-II and Tier-III cities
Investment needs: Mutual Funds, IPOs, OFS, public
bond offerings, 3rd party corporate fixed deposits,
National Pension System
• Mutual Fund: Open-source model, distribute
2,500+ mutual funds, 2nd largest non-bank
distributor
• Portfolio management services, Alternate
investment funds
Protection needs: Life /General Insurance
Loan requirements: Digital distribution of loans
Lifecycle needs of the customer
Strong pan India distribution
Distribution network
₹
15
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
16
Source: AMFI, SEBI
Equity & derivative market share is the share of Average Daily Turnover, MF market share including equity & debt
17
01Equity Capital Markets
Ranked 1st in IPO1
league table by value
Managed 200+ ECM transactions in the last 10 years
02Financial Advisory Services
Rank 1st amongst domestic financial advisors by number of
deals in merger market table
Advised over 70 M&A transactions
03Strengths
Sector expertise
Corporate relationships
Strong distribution franchise
1. IPO:IPO/FPO/InvIT/REIT
Source: Prime Database, Merger market , SEBI
Leading Investment Bank in India
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)
0%
38%
FY-14 FY-19
30%
41%
FY-14 FY-19
4%
7%
FY-14 FY-19
18
Source Prime database, Venture intelligence
ECM: IPO/FPO/InvIT/REIT, QIP/IPP, Rights issue, Offer for sale
Agenda
• ICICI Securities at a glance
• Industry overview & Strategy
• Financial Results
Growing global
remittances
• Inward- USD 78.80
bn (CY2018)
• Outward- USD
13.78 bn (FY2019)
Share of affluent
rising
• 16% in 2025 (8% in
2016)
Growing ecosystems
• MF AUM
• ₹ 27 tn (Nov-19)
• SIP monthly collection
• ₹ 82.46 bn (Oct-19)
Fueled by urban elite
• Consumer spending
to quadruple (3.6x –
2010 to 2020)
Internet users in India
in 2018
• 566.0 mn users
• 38% penetration
Digital India –
“Aadhaar” initiatives
Financialisation
of savings
Increase in
digital
Debt driven
consumption
growth
Macro economic trends
Widespread
affluence
Sources:
-Affluence Data: BCG CCI Proprietary Income & BCG Analysis
-Consumption Trends - Euromonitor, National Sample Survey Office; BCG Proprietary Research with 6,300 Consumers, BCG Analysis
-Digital Trend : Kantar IMRB ICUBE Report 2018
-NPS Trust Official Site - http://www.npstrust.org.in/assets-under-management-and-subsribers
-Inward remittance – World Bank report on Personal Remittances - https://data.worldbank.org/indicator/BX.TRF.PWKR.CD.DT?locations=IN
-LRS- RBI report on Outward remittance under LRS for resident Individuals- https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx
₹
Indians making
global imprints
20
Changing nature of competition and regulations
Existing Emerging
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
21
Emphasis on lowering of intermediary margins to enhance customer returns
Greater focus on transparency and risk management
Increased compliance cost
Regulatory direction
Insta Loans
ESOP
Mortgage
Life
Health
General
To emerge as comprehensive financial solutions provider for the affluent Indian
powered digitally with strong relationship coverage
Equity
Mutual Funds
Fixed Income & deposits
PMS
National Pension System
Protection
Re-imagine: API-led solutionsRe-imagine: Digital banking
Wealth & Investments
Assets
&
Loans
Business in makeover
22
Broad basing the business model
Diverse and granular revenue streamsImperatives
Strategy: Strengthening the core and building 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. Improving customer
experience
23
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
24
Progress: Improvement in active client share
Ramping scale & value
1. % of New client acquisition (NCA) who traded within 90 days of account getting opened.
2. Trailing 12 month; Source: NSE
Period: Q2-FY2020 vs Q2-FY2019, QoQ: Q2-FY2020 vs Q1-FY2020
• Quality of Sourcing
• New arrangement with ICICI Bank
• Activation rate1
up from 33% to 46% for client sourced by bank
• Number of active NCA up by 22%
• Launched subscription based plan
• Over 1.6 lac subscriptions as at end Q2-FY2020
• NRI
• Started sharing digital leads with UAE & Bahrain, making
onboarding process smoother for customer
• Business partners
• Network at 8,000+ in Q2-FY2020, up by 29%
• Digital Sourcing
• Improvement in daily run rate of accounts opened
completely online
• Tab based instant account opening; monthly run rate of
~ 9,500
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%
10.07%
10.02%
Jan
-18
Feb
-18
Mar-18
Ap
r-18
May-18
Ju
n-18
Ju
l-18
Au
g-18
Sep
-1
8
Oct-18
No
v-1
8
Dec-18
Jan
-19
Feb
-19
Mar-19
Ap
r-19
May-19
Ju
n-19
Ju
l-19
Au
g-19
Sep
-1
9
Oct-19
Market share2 in active client base (NSE)
• 9.1 lac NSE active clients2
• Consistently adding active clients for last 9 months
• Equity blended market share up by 90bps from
7.8% in Q2-FY2019 to 8.7% in Q2-FY2020
25
B. Monetize client value
03
02
01
Margin trading facility
MTF extended on NSE
Strengthening wealth management franchise
Comprehensive proposition for wealth clients including
curated proprietary offering
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, Two wheeler 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
26
Progress: Enhancing completely digital product suite
Monetising client value
• Launched digital distribution of loans
• 0.9 million unique clients for pre approved loans based on bank’s credit criteria
• Digital personal loans and credit cards and auto loan top up launched
• Tie ups with insurance companies to digitally distribute insurance products
• Tie ups with Religare health and Star health
• Launched full suite of Health Insurance products with Religare Health in the stand alone health
category
• Margin trading facility extended on NSE on September 27, 2019
• ESOP funding: Ramping up book size
• Proprietary PMS for HNI clients: Growing AUM
27
Self directed
Pay per use
Individual stock based
recommendation
Self developed limited
tools
Investment only
Digital based advisory
supplemented by voice RM
Subscription based
One click investment in
recommended bundle of stocks
Augmenting 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
28
Progress: Curated engagement solutions
Enhancing engagement for client retention & penetration
• AI based tool for identifying next best action and next best product/service
• Pilot campaign initiated across 3 equity and 2 non-equity product/service
• Low touch engagement model
• License from IRDAI for Distance Marketing obtained on August 21, 2019
• Working on a pilot to offer low touch engagement model for insurance
• Launched One Click Investments on August 3, 2019
• 19 curated baskets of research recommended Mutual Funds
• Easy, convenient and automated portfolio allocation into basket of Mutual Funds
• Liquidity proposition ‘eATM’ extended on NSE on June 7, 2019
• New pricing plan for derivative product launched on September 25, 2019
• New brokerage plan in options being piloted
• Initial response encouraging
29
D. Robust technology and digital agility
Secure, stable and fast system
• Reliable
• Avg. response time of 24 ms
• Peak concurrent users ~ 48k
Established framework for managing
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
• New mobile app
30
Progress: Fintech partnership based digital capabilities
Digital agility
• API architecture launched in September 2019
• Fintech partnership based digital capabilities
• Digital Team to scan the environment for identifying new technologies and opportunities
• Projects evaluated: 63, Projects moved to UAT: 1, Projects POC/Launched: 1, Project under
integration process: 1
• Launched
• AI based tool to increase customer engagement
• Under Implementation
• Trading strategy formulation tool for derivatives
• Comparison tool for insurance
• Upgrading client engagement platform
• Launched new website, currently in beta version
• Reengineering our mobile app including new UI/UX
31
E. Operating leverage through cost efficiency
Strong focus on inculcating cost culture to enable identification and
enhance cost efficiency on an on-going basis32
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
Progress: Rationalising cost structures
Operating leverage through cost efficiency
Period: Q2-FY2020 vs Q2-FY2019
• Overall cost down by 7%
• Employee cost down by 7%
• Head count down by 8%
• 5% decrease from 4,298 in June 2019 to 4,077 in Sept 2019
• Branch count down from 202 to 187
33
Agenda
• ICICI Securities at a glance
• Industry Overview & Strategy
• Financial Results
Financials
Revenue diversification1 (%)
Strong financial performance
Revenue (` million)
8,12
3
12
,0
95
11
,2
46
14
,0
42
18
,6
10
17
,2
70
4,5
81
4,1
82
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 16%
61
%
62
%
59
%
55
%
55
%
54
%
54
%
52
%
39
%
38
%
41
%
45
%
45
%
46
%
46
%
48
%
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
Brokerage revenue Others
351. Brokerage is excluding interest & others
Financials
Institutional Equities revenue (` million)
Segmental performance
Retail Equities revenue (` million)
36
4,6
21
7,0
27
6,07
0
7,01
6 9,1
74
8,1
54
2,1
94
1,8
32
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 12%
33
9 52
7
53
7 74
0
1,0
69
1,17
4
27
9
32
6
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 28%
Financials
Investment banking revenues (` million)
Segmental performance
Distribution revenues (` million)
37
1,8
67 2,6
69
2,54
1 3,49
7
4,6
65
4,6
35
1,2
79
1,0
62
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 20%
59
3
63
8
83
4
1,1
98
1,4
40
99
1
28
3
32
2
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 11%
Asset light agency business with high returns
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
42
1,3
51
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 40%
38
Consolidated P&L
39
(` million)
Particulars Q2-FY19 H1-FY19 Q1-FY20 Q2-FY20 H1-FY20 Y-o-Y%
Revenue 4,581 8,940 4,021 4,182 8,203 (9)%
Operating Expenses1
340 592 245 244 489 (28)%
Employee benefits expenses 1,435 2,802 1,274 1,339 2,613 (7)%
Finance Cost2
108 239 178 179 357 66%
Other expenses2
621 1,204 564 579 1,143 (7)%
Total expenses 2,504 4,837 2,261 2,341 4,602 (7)%
Profit before tax 2,077 4,103 1,760 1,841 3,601 (11)%
Tax3
735 1,423 622 490 1,112 (33)%
Profit after tax 1,342 2,680 1,138 1,351 2,489 1%
Other Comprehensive Income (OCI) - (16) (35) (16) (52) -
Total Comprehensive Income (TCI) 1,342 2,664 1,103 1,335 2,437 (1)%
Y-o-Y: Q2-FY2020 vs Q2-FY2019
1. Includes MTM of ` 108 mn & 36 mn taken in Q1-FY2020 and Q2-FY2020 respectively on DHFL
2. Impact of Ind AS116 in Q1-FY2020 & Q2-FY2020 respectively: finance cost & depreciation increase by ` 156 mn , ` 141 mn;
lease expense reduce by ` 128 mn and ` 119 mn; having a net impact of ` 28 mn and 22 mn
3. Impact of change in income tax rate including impact on account of revaluation of deferred tax asset given in Q2-FY2020
Segment performance
40
(` million)
Particulars Q2-FY19 H1-FY19 Q1-FY20 Q2-FY20 H1-FY20 Y-o-Y%
Segment Revenue
Broking & commission 4,241 8,209 3,637 3,810 7,448 (10)%
Advisory services1
283 605 167 323 489 14%
Investment & trading 57 126 69 49 118 (14)%
Income from operations2
4,581 8,940 4,021 4,182 8,203 (9)%
Segment Profit before tax
Broking & commission 1,904 3704 1,647 1,672 3,318 (12)%
Advisory services 144 315 16 175 191 22%
Investment & trading 29 84 (51) (6) (56)
Total Result 2,077 4,103 1,760 1,841 3,601 (11)%
Y-o-Y: Q2-FY2020 vs Q2-FY2019
1. Advisory services includes Financial advisory services such as equity-debt issue management services, merger and
acquisition advice and other related activities
2. Amount of ` 207 mn and ` 148 mn pertaining to interest on income tax refund is not allocated to any segment and is
included in total revenues and results of FY2019 and Q1-FY2020 respectively
Balance sheet : Assets
(` million)
41
ASSETS At Sep 30, 2018 At Mar 31, 2019 At Sep 30, 2019
Financial assets (A) 25,538 43,697 31,030
Cash/Bank and cash equivalents 16,823 31,4861
15,322
Derivative financial instruments and Securities for trade 700 2,563 5,642
Receivables 2,013 4,770 2,457
Loans 5,022 4,033 6,797
Investments 37 28 27
Other financial assets 943 817 785
Non-financial assets (B) 2,694 2,949 4,986
Deferred tax assets (net) 647 737 5712
Right-of-use assets3
- - 1,662
Fixed assets, CWIP & Intangible assets 454 476 517
Current tax assets & other non financial assets 1,593 1,736 2,236
Assets (A+B) 28,232 46,646 36,016
1. Settlement obligation pertaining to an offer for sale of ` 17,362 mn was pending for payment as on March 31, 2019
2. Re-measured deferred tax assets at new income tax rate
3. Lease assets capitalised as per Ind AS 116, which came into effect on April 1, 2019, are being reported as Right of use assets
Balance sheet : Equity and Liabilities
(` million)
42
EQUITY AND LIABILITIES At Sep 30, 2018 At March 31, 2019 At Sep 30, 2019
Financial liabilities (A) 13,285 30,182 19,892
Derivative financial instruments 3 17 -
Payables 6,091 23,3621
5,650
Debt securities 5,204 4,473 10,143
Lease liabilities2
- - 1,654
Deposits & Other financial liabilities 1,987 2,330 2,445
Non-financial liabilities (B) 5,288 5,991 5,366
Equity (C) 9,659 10,473 10,758
Equity share capital 1,611 1,611 1,611
Other equity 8,048 8,862 9,147
Equity and Liabilities (A+B+C) 28,232 46,646 36,016
1. Settlement obligation pertaining to an offer for sale of ` 17,362 mn was pending for payment as at March 31, 2019
2. Lease liabilities are being capitalised in financial liabilities as per Ind AS116 applicable from April 1, 2019
Thank you
Annexures
Equities business
Blended market share
4.5%
4.7% 6
.6%
7.8%
9.0%
8.5%
8.6%
7.3%
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
Derivative market share
4.1%
4.4%
6.5% 7.8%
9.1%
8.6%
8.6%
7.3%
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
I-sec ADTO (` billion)
44
65 10
1 18
7
37
2
53
3
55
6
71
1
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
Equity market share
7.5%
7.4%
7.4%
7.1%
7.4%
7.7%
7.8%
8.7%
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
45
28% growth in I-Sec ADTO, Equity market share up by 90bps
Period: Q2-FY2020 vs Q2-FY2019
Distribution
Mutual Funds AUM (` billion)
Mutual Funds
Mutual Funds Revenue (` million)
78
9
1,5
40
1,1
17
1,6
57
2,8
47
2,6
95
73
1
55
6
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 28%
76
12
0
16
0 21
2
30
2
34
7
35
1
35
8
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 36%
46
Distribution
Life Insurance Premium (` million)
Life Insurance
Life Insurance Revenue (` million)
37
1
46
5 58
6 7
13
48
3
47
4
12
3
12
3
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 5%
4,1
29
5,6
25
6,8
16
8,3
90
9,0
38
8,8
68
2,2
02
1,9
82
FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Q2-19 Q2-20
FY14 to FY19
CAGR 17%
47