Religare Enterprises Limited · NSE:RELIGARE
Religare Enterprises — Q2 FY2016 Earnings Presentation
37 slides from Religare Enterprises's earnings presentation, Nov 2, 2015
Slide 1: Religare Enterprises Limited Q2FY16 Results
Religare Enterprises Limited Q2FY16 Results November 2, 2015
Slide 2: Religare Enterprises Overview
Religare Enterprises Overview 1
Slide 3: REL Overview
REL Overview REL is an investment holding company that has built an integrated financial services platform Business Overview • Religare Enterprises Limited (REL) is an investment holding company that has built an integrated financial services platform through its portfolio companies • Portfolio comp
Slide 4: Portfolio Functions Overview
Portfolio Functions Overview REL’s primary objective is to ensure that its portfolio companies create equity value REL Structure and Functions • Religare Enterprises Limited (REL) is an Investment Holding Company managed by a set of professionals and supervised by a majority-independent Board • The
Slide 5: Consolidated Performance
Consolidated Performance $8 RELIGARE Values that bind
Slide 6: Key financial indicators – Q2 FY16
Key financial indicators – Q2 FY16 Revenue up 9% QOQ and 20% YOY Lending remains largest contributor to revenue mix (₹ mn) REL Consolidated Revenue 11% 11% RSL+ RCL +RCTL RFL 56% 54% 11,332 11,755 11,542 9,643 10,614 RGAM 16% 17% ARLI RHICL 6% 7% 7% 3% 5% Others 6% Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2
Slide 7: Consolidated Income Statement – Q2 FY16
Consolidated Income Statement – Q2 FY16 QOQ Change YOY Change (₹ mn) Q2FY16 Q1FY16 (%) Q2FY15 (%) Total Income 11,542 10,614 9% 9,643 20% Personnel Expenses 2,353 2,209 7% 1,828 29% Operating and Admin Expenses 3,312 2,875 15% 2,760 20% Interest and Finance Charges 4,535 4,418 3% 4,337 5% Depreciati
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ mn) As at September 30, 2015 As at June 30, 2015 Owners’ Funds 41,335 39,908 Share Capital 2,033 2,033 Reserves and Surplus 39,302 37,874 Minority Interest 1,738 2,014 Non-Current Liabilities 107,033 100,991 Current Liabilities 118,773 112,841 Total Liabilities 268,879
Slide 9: Performance of Portfolio Companies
Performance of Portfolio Companies 8
Slide 10: Lending – Religare Finvest Limited
Lending Performance Review Net worth of Business ₹25.16 bn. Highlights Lending book of ₹146.31 bn. Religare Finvest 54% of REL’s consolidated Limited revenue (as of/q.e. 30-Sep-2015) One of India’s largest Strategic Non-Banking Improve ROE Priorities Financial Companies, Continuous focusing on the S
Slide 11: Lending: SME-Secured drives growth in book size
Lending SME-Secured drives growth in book size Continued traction in SME-Secured segment: book size up 44% YOY NIM and Opex to ANR (₹ bn) SME-Unsecured* SME-Secured* Capital Market Lending NIM Opex/ ANR** SME-CE/CV Finance* 146.3 4.91% 4.92% 4.74% 132.7 138.9 4.59% 4.54% 120.9 12.3 0.8 14.2 112.7 1.
Slide 12: Lending: Financial Performance
Lending Financial Performance RFL Abridged Income Statement QOQ Change YOY Change (₹ mn) Q2FY16 Q1FY16 (%) Q2FY15 (%) Total Income 6,204 5,993 4% 5,268 18% Operating and Administrative Expenses 935 774 21% 739 26% Personnel Expenses 401 363 11% 266 51% Interest and Finance Charges 3,889 3,705 5% 3,2
Slide 13: Retail Broking
Retail Broking Performance Review Market share of Business 1.3% in equities Highlights and 2.9% in Religare Securities commodities Limited 11% of REL’s Religare Commodities consolidated Limited revenue (q.e. 30-Sep-2015) Religare Comtrade Limited Strategic Increase A formidable retail Priorities Dis
Slide 14: Retail Broking: Improving performance in muted conditions
Retail Broking Improving performance in the face of muted conditions Market wide turnover remains muted across segments Religare’s market-share (ADTO# - ₹ bn) Commodities - Futures Equities - Options (%) Market Share - Equities Market Share - Commodities Equities - Cash Equities - Futures 3,836 3.8
Slide 15: Retail Broking: Financial Performance
Retail Broking Financial Performance RSL, RCL & RCTL Combined Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q2FY16 Q1FY16 (%) Q2FY15 (%) Total Income 1,294 1,133 14% 1,223 6% Operating and Administrative Expenses 507 542 -6% 557 -9% Personnel Expenses 326 329 -1% 292 12% Interest and Finan
Slide 16: Wealth Management
Wealth Management Performance Review Business AUM of Highlights ₹40.29 bn. Customer base of Religare Wealth over 4,500 Management Limited (as of 30-Sep-2015) Strategic An open architecture Increase Yield on Priorities platform targeting AUM growing affluence Increase Annuity Income 15
Slide 17: Wealth Management: Differentiating through a focused idea-driven approach
Wealth Management Differentiating through a focused idea-driven approach Client Base AUM (₹ bn) No. of Clients Total AUM 44.0 4,627 4,553 4,549 39.5 40.3 4,523 4,507 34.6 33.3 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15 Relationship Manager Pro
Slide 18: Wealth Management: Financial Performance
Wealth Management Financial Performance RWM Abridged Income Statement QOQ Change YOY Change (₹ mn) Q2FY16 Q1FY16 (%) Q2FY15 (%) Total Income 77 41 87% 67 14% Operating and Administrative Expenses 19 15 25% 21 -10% Personnel Expenses 64 63 2% 53 21% Interest and Finance Charges 1 - nm - nm Depreciati
Slide 19: Capital Markets
Capital Markets Performance Review Business India IE cash market Highlights share of 1.1% Empanelled with Religare Capital 457 clients globally Markets Limited (as of/q.e. 30-Sep-2015) Asia-focussed Strategic Institutional Equities Priorities Increase Market and Investment Share Banking platform Att
Slide 20: Capital Markets: Creating a sustainable platform
Capital Markets Creating a sustainable platform Client empanelment Business update No. of Institutional Empanelments* India platform continues to deliver following focus on investing in our areas of strength and resource building: successful in converting the robust investment banking pipeline and
Slide 21: Asset Management
Asset Management Performance Review Business Highlights Q2FY16 Average AUM of ₹216 Religare Invesco Asset bn. Management Co. Pvt. Ltd. Strategic Entering the next phase Priorities of growth Profitable AUM Growth 20
Slide 22: Asset Management: Entering the next phase of growth
Asset Management Entering the next phase of growth with Invesco’s induction as JV partner Industry-wide average AUM Religare Invesco mutual fund AUM grew 11% QOQ (₹ bn) Avg. Industry AUM (₹ bn) Religare - Average AUM 12,344 13,214 198 210 216 11,062 11,887 177 195 10,597 Q2FY15 Q3FY15 Q4FY15 Q1FY16
Slide 23: Asset Management: Financial Performance
Asset Management Financial Performance RIAMC Abridged Income Statement QOQ Change YOY Change (₹ mn) Q2FY16 Q1FY16 (%) Q2FY15 (%) Total Income 253 245 3% 183 38% Operating and Administrative Expenses 131 113 16% 60 118% Personnel Expenses 122 125 -2% 114 7% Interest and Finance Charges - - - - - Depr
Slide 24: Global Asset Management
Global Asset Management Performance Review Business Highlights AUM of $20.54 bn. Religare Global Asset (as of 30-Sep-2015) Management Strategic Building a multi- AUM Growth in Priorities boutique Alternative existing affiliates Asset Manager Launch of organic affiliates 23
Slide 25: Global Asset Management: Financial Performance
Global Asset Management Financial Performance RGAM Inc. Abridged Consolidated Income Statement QOQ Change YOY Change (₹ mn) Q2FY16 Q1FY16 (%) Q2FY15 (%) Total Income 1,924 1,748 10% 1,512 27% Operating and Administrative Expenses 289 260 11% 175 65% Personnel Expenses 850 817 4% 693 23% Interest and
Slide 26: Health Insurance
Health Insurance Performance Review Business GWP of Highlights ₹1,065 mn. in Q2FY16 Religare Health 4,630 hospitals Insurance Co. Limited in provider network (as of 30-Sep-2015) Strategic Positioned to capture Priorities significant Group Grow GWP with synergies efficient use of Capital 25
Slide 27: Health Insurance: Robust distribution aiding scale
Health Insurance Robust distribution aiding in rapidly achieving scale Gross Written Premium Business Update (₹ mn) GWP Gross Written Premium (GWP) of ₹1.1 billion in Q2FY16; GWP growth is 105% as compare to previous year 1,031 1,240 1,065 Total Paid-up Share Capital at ₹4 billion 673 521 Pan-
Slide 28: Health Insurance: Financial Performance
Health Insurance Financial Performance RHICL Abridged Income Statement QOQ Change YOY Change (₹ mn) Q2FY16 Q1FY16 (%) Q2FY15 (%) Gross Written Premium 1,065 1,240 -14% 521 105% Net Written Premium 772 892 -13% 381 102% Net Earned Premium 692 596 16% 307 125% Net Claims Incurred 416 331 26% 184 127%
Slide 29: Life Insurance
Life Insurance Performance Review Business Approx. 403,000 Highlights lives covered AEGON Religare Life ₹5.8 bn. capital invested by REL Insurance Co. Limited (as of 30-Sep-2015) Strategic Pioneer in Online Priorities Efficient use of Distribution Capital Achieve Breakeven 28
Slide 30: Life Insurance: Acknowledged leader in use of technology
Life Insurance Acknowledged leader in use of technology Steadily growing customer base Premium Income split (000s) No. of Customers (₹ mn) Single Renewal First year premium 2,435 6 1,435 358 383 391 403 1,208 1,253 1,242 346 3 2 3 782 616 845 812 994 3 425 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 393
Slide 31: Life Insurance: Financial Performance
Life Insurance Financial Performance ARLI Abridged Income Statement* QOQ Change YOY Change (₹ mn) Q2FY16 Q1FY16 (%) Q2FY15 (%) Premiums Earned (Net) 1,156 546 112% 1,146 1% Investment Income and Other Income 35 114 -70% 547 -94% Total Income 1,191 660 80% 1,693 -30% Commission 63 19 238% 70 -10% Ope
Slide 32: Appendix: Portfolio Companies’ Balance Sheets
Appendix: Portfolio Companies’ Balance Sheets 31
Slide 33: Portfolio Companies’ Balance Sheets (1/4)
Portfolio Companies’ Balance Sheets (1/4) RFL Abridged Balance Sheet RSL, RCL & RCTL Combined Abridged Balance Sheet (₹ mn) As at September 30, 2015 (₹ mn) As at September 30, 2015 Owners’ Funds 25,155 Owners’ Funds 5,254 Share Capital 2,200 Share Capital 345 Reserves and Surplus 22,955 Reserves and
Slide 34: Portfolio Companies’ Balance Sheets (2/4)
Portfolio Companies’ Balance Sheets (2/4) RWM Abridged Balance Sheet RIAMC Abridged Balance Sheet* (₹ mn) As at September 30, 2015 (₹ mn) As at September 30, 2015 Owners’ Funds 41 Owners’ Funds 599 Share Capital 1,300 Share Capital 765 Reserves and Surplus (1,259) Reserves and Surplus (166) Non - Cu
Slide 35: Portfolio Companies’ Balance Sheets (3/4)
Portfolio Companies’ Balance Sheets (3/4) RGAM Inc. Abridged Consolidated Balance Sheet RHICL Abridged Balance Sheet* (₹ mn) As at September 30, 2015 (₹ mn) As at September 30, 2015 Owners’ Funds 13,839 Owners’ Funds 1,327 Share Capital 0 Share Capital 4,000 Reserves and Surplus 13,839 Reserves and
Slide 36: Portfolio Companies’ Balance Sheets (4/4)
Portfolio Companies’ Balance Sheets (4/4) ARLI Abridged Balance Sheet* (₹ mn) As at September 30, 2015 Owners’ Funds 2,003 Share Capital 13,130 Reserves and Surplus (11,127) Policyholders' Funds (including funds for 16,192 discontinued policies and future appropriation) Current Liabilities 958 Total
Slide 37: Religare Enterprises Limited
Religare Enterprises Limited D3, P3B, District Centre, Saket, New Delhi 110017 Email: [email protected] This presentation may include forward-looking statements These forward-looking statements are statements regarding Religare's intentions, estimates, forecasts, projections, beliefs or
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