Religare Enterprises Limited · NSE:RELIGARE
Religare Enterprises — Q1 FY13 Earnings Presentation
30 slides from Religare Enterprises's earnings presentation, Aug 6, 2012
Slide 1: Religare Enterprises Limited Q1 FY13 Results
Religare Enterprises Limited Q1 FY13 Results August 6, 2012
Slide 2: Table of Contents
Table of Contents Q1 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 1
Slide 3: Markets beset with twin challenges of slowing growth and elevated interest rates
Markets beset with twin challenges of slowing growth and elevated interest rates GDP growth rate has been trending down; expectations Repo rate reduced at the start of the financial year; no for FY13 have been tempered further cuts despite growth slowdown 8.50 9.2% Real GDP Growth RBI Forecast Repo
Slide 4: Volatility continues in the capital market as deal volume dwindles and FIIs withdraw funds
Volatility continues in the capital market as deal volume dwindles and FIIs withdraw funds Mutual Fund Industry AUM reverted to year-ago levels; New Business Premium growth for the Life Insurance inflows were primarily in Liquid Funds and Debt Funds industry was tepid (` Tn) Closing AUM (` Bn) FY12
Slide 5: Key financial indicators – Q1 FY13
Key financial indicators – Q1 FY13 Revenue up 14% on y-o-y basis Lending becoming a dominant part of the mix* (` mn) REL Consolidated Revenue* (` mn) +14% 13% RSL+RCL 19% RFL 50% 67% 9,047 8,606 7,567 8,098 7,770 0% RGAM 10% ARLI RCML 13% 12% 4% 4% Others 4% 4% Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY1
Slide 6: Consolidated Income Statement – Q1 FY13
Consolidated Income Statement – Q1 FY13 Q-o-Q Change Y-o-Y Change (` mn) Q1 FY13 Q4 FY12 (%) Q1 FY12 (%) Operating & Other Income 8,569 9,024 -5% 7,569 13% Sale of Bullion* 3,203 3,514 -9% 299 972% Total Income 11,773 12,537 -6% 7,867 50% Cost of Bullion Sold 3,167 3,490 -9% 301 953% Personnel Expen
Slide 7: Consolidated Balance Sheet
Consolidated Balance Sheet (` mn) As at June 30, 2012 As at Mar 31, 2012 Owners’ Funds 37,441 36,941 Share Capital 2,055 2,054 Reserves and Surplus 35,387 34,887 Minority Interest 2,014 2,058 Non - Current Liabilities 73,151 72,222 Current Liabilities 101,174 92,214 Total Liabilities 213,781 203,435
Slide 8: Business Update – 1/3
Business Update – 1/3 Focus on core strengths yielding results Lending Reinforced our positioning as the growth capital provider of choice for SMEs by associating with the SME Mentor Growth Series in collaboration with moneycontrol.com Book size stood at ` 117 bn. as at 30-Jun-2012, higher by
Slide 9: Business Update – 2/3
Business Update – 2/3 Efforts to build a sustainable cost base and ability to withstand volatility paying off • Asset Management: • Steady quarterly performance with AUM growing in line with industry – MF AUM stood at ` 110 bn. as at 30-June-2012 • Wealth Management: • Focus on Relationship Manager
Slide 10: Business Update – 3/3
Business Update – 3/3 Differentiated offerings resulting in traction with clients EM Capital Markets Institutional Equities 310 stocks under active coverage globally with over 175 in India; recognition for research from clients and independent agencies Empanelled with over 560 institutional
Slide 11: Table of Contents
Table of Contents Q1FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 10
Slide 12: Lending – Religare Finvest
Lending – Religare Finvest Robust growth in loan book Robust growth of 36% Y0Y in book size, driven by SME- NIM and Opex in a comfortable range; being monitored on focused lending an ongoing basis Lending (` bn) SME Working Capital* SME Loan Against Property* NIM*** Opex/ ANR SME CE/CV Finance* Capi
Slide 13: Lending – Religare Finvest Financial Performance
Lending – Religare Finvest Financial Performance RFL Abridged Income Statement Lending QOQ Change YOY Change (` mn) Q1FY13 Q4Y12 (%) Q1FY12 (%) Retail Broking Operating & Other Income 5,729 5,446 5% 3,806 51% Total Income 5,729 5,446 5% 3,806 51% Operating and Administrative Expenses 778 747 4% 731
Slide 14: Retail Broking – Religare Securities
Retail Broking – Religare Securities Operational improvements continue Cash Equities turnover declined market-wide Brokerage yield impacted QOQ by increasing share of Lending Futures & Options; re-pricing effort continues (ADTO* - ` bn) Cash Equities Futures Options (bps) Religare’s Brokerage Yield
Slide 15: Retail Broking – Religare Commodities
Retail Broking – Religare Commodities Structural growth story in commodities trading continues to play out Market-wide turnover steady Leaner team servicing an expanded client base Lending (` bn) (000s) Market-wide avg. daily turnover No. of Clients Retail Broking 153 157 161 164 147 685 552 553 548
Slide 16: Retail Broking Financial Performance
Retail Broking Financial Performance RSL & RCL Combined Abridged Income Statement Lending QOQ Change YOY Change (` mn) Q1FY13 Q4Y12 (%) Q1FY12 (%) Retail Broking Operating & Other Income 1,116 1,263 -12% 1,452 -23% Total Income 1,116 1,263 -12% 1,452 -23% Operating and Administrative Expenses 567 63
Slide 17: Asset Management – Religare AMC
Asset Management – Religare AMC Steady quarterly performance Industry-wide average AUM grew 4% QOQ, driven by Business update Lending inflows in Liquid Funds and Debt Funds (` bn) Avg. Industry AUM Steady quarter, characterised by increase in both Retail and Institutional AUM Retail Broking RAMC
Slide 18: Asset Management – Religare AMC Financial Performance
Asset Management – Religare AMC Financial Performance RAMC Abridged Income Statement Lending QOQ Change YOY Change (` mn) Q1FY13 Q4FY12 (%) Q1FY12 (%) Retail Broking Operating and Other Income 135 143 -5% 151 -11% Total Income 135 143 -5% 151 -11% Operating and Administrative Expenses 57 59 -4% 57 0
Slide 19: Religare Capital Markets
Religare Capital Markets Creating a sustainable platform Client empanelment Business update Lending Sharpened focus on profitability and greater sustainability: No. of Institutional Empanelments* • Continue to see traction in the ECM business globally • Savings impact of restructuring visible on cos
Slide 20: Religare Global Asset Management Inc. Financial Performance
Religare Global Asset Management Inc. Financial Performance RGAM Inc. Abridged Consolidated Income Statement Business Update Lending Northgate Capital QOQ Change YOY Change continues to raise funds for new Retail Broking (` mn) Q1FY13 Q4FY12 (%) Q1FY12 (%) products Operating and Other Income 1014
Slide 21: Table of Contents
Table of Contents Q1 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 20
Slide 22: Religare Macquarie Wealth Management
Religare Macquarie Wealth Management Cost base resized to sustainable levels; productivity improvement continues Growing client base Stability of AUM is an outcome of focus on clients’ interests No. of Clients (` bn) Total AUM 27.5 4,485 4,631 4,492 4,662 4,687 26.1 23.7 24.2 24.2 30-Jun-11 30-Sep-1
Slide 23: Religare Macquarie Wealth Management Financial Performance
Religare Macquarie Wealth Management Financial Performance RMWM Abridged Income Statement* QOQ Change YOY Change (` mn) Q1FY13 Q4FY12 Q1FY12 (%) (%) Operating and Other Income 36 81 -56% 73 -50% Total Income 36 81 -56% 73 -50% Operating and Administrative Expenses 25 26 -2% 40 -36% Personnel Expense
Slide 24: AEGON Religare Life Insurance
AEGON Religare Life Insurance Strong growth in operating income with a lower, more sustainable cost base Cumulatively insured ~227,000 lives New Business Premium grew 12% YOY (000s) No. of Customers (` mn) Single Renewal First year premium 1,821 88 1,048 998 1,051 213 227 49 161 175 190 15 790 705 5
Slide 25: AEGON Religare Life Insurance Financial Performance
AEGON Religare Life Insurance Financial Performance ARLI Abridged Income Statement* QOQ Change YOY Change (` mn) Q1FY13 Q4FY12 Q1FY12 (%) (%) Operating and Other Income 870 2,271 -62% 683 27% Total Income 870 2,271 -62% 683 27% Operating and Administrative Expenses 940 2,317 -59% 789 19% Personnel E
Slide 26: Table of Contents
Table of Contents Q1 FY13 Highlights Performance of Key Subsidiaries Performance of JVs Appendix : Subsidiary and JV Balance Sheets 25
Slide 27: Subsidiary and JV Balance Sheets (1/3)
Subsidiary and JV Balance Sheets (1/3) RFL Abridged Balance Sheet RSL & RCL Combined Abridged Balance Sheet (` mn) As at June 30, 2012 (` mn) As at June 30, 2012 Owners’ Funds 21,205 Owners’ Funds 4,101 Share Capital 2,306 Share Capital 395 Reserves and Surplus 18,899 Reserves and Surplus 3,706 Non
Slide 28: Subsidiary and JV Balance Sheets (2/3)
Subsidiary and JV Balance Sheets (2/3) RAMC Abridged Balance Sheet RGAM Abridged Balance Sheet (` mn) As at June 30, 2012 (` mn) As at June 30, 2012 Owners’ Funds 252 Owners’ Funds 5,008 Share Capital 603 Share Capital 0 Reserves and Surplus (350) Reserves and Surplus 5,008 Non - Current Liabilities
Slide 29: Subsidiary and JV Balance Sheets (3/3)
Subsidiary and JV Balance Sheets (3/3) RMWM Abridged Balance Sheet* ARLI Abridged Balance Sheet* (` mn) As at June 30, 2012 (` mn) As at June 30, 2012 Owners’ Funds 111 Owners’ Funds 1,539 Share Capital 1,150 Share Capital 11,350 Reserves and Surplus (1,039) Reserves and Surplus (9,811) Non - Curren
Slide 30: Thank You
Thank You 2S RELIGARE 29 Values that bind