Religare Enterprises Limited · NSE:RELIGARE

Religare Enterprises — Q1 FY2011 Earnings Presentation

47 slides from Religare Enterprises's earnings presentation, Aug 3, 2010

  1. Slide 1: Q1 FY11 Results Conference Call

    Religare Enterprises Limited Q1 FY11 Results Conference Call 03 August 2010 1

  2. Slide 2: Building a leading emerging market financial services group

    Religare is building a leading emerging market financial services group, anchored in India and underpinned by three secular trends Integrated Indian Indian growth story leading to deepening of financial Financial 1 services and rapid growth of profit pools Services Play VISION “To be the leading eme

  3. Slide 3: Balanced portfolio of businesses

    …to enable value creation through a balanced portfolio of businesses… Religare Business Portfolio Mix Broking Asset Mgmt Lending Insurance Capital Heavy Balance Fund based / Markets Sheet RFL ARLI LAS  Diversified portfolio that Capital Intensive allows us to capitalize on high RCML growth prospect

  4. Slide 4: Model of aligned incentives

    …. that works on a model of aligned incentives, encouraging entrepreneurship within the business and leveraging best-in-breed partners • Provide intellectual capital and insight • Accelerate the creation of the Religare franchise Strategic Partners • Unconstraint growth bandwidth of the group Busine

  5. Slide 5: Key Operating Highlights Q1 FY11

    Key Operating Highlights Q1 FY 11 Consolidating India platform and begun executing on global ambitions India Portfolio  Established businesses continued to deliver in the face of challenging market conditions and evolving regulatory framework  Consolidating broking businesses with Religare Commodi

  6. Slide 6: Strengthening Global Footprint and Pan India Reach

    Strengthening Global Footprint and Pan India Reach • Religare has strengthened its global footprint and is now present in all major money centres and key Emerging Markets USA Japan • We continue to extend our Pan India reach: Retail distribution now covers 2,123 business locations spread across 560

  7. Slide 7: Key Financial Highlights Q1 FY11

    Key Financial Highlights Q1 FY 11 Religare has reported a loss this quarter as it invests in growth businesses  REL’s total income for Q1 FY11 was Rs. 4,476 mn, a growth of 42% YoY and a decline of 16% QoQ  Lending business and Retail Broking were the key growth drivers  Combination of factors in

  8. Slide 8: Strengthening Governance and Business Alignment

    Strengthening Governance and Business Alignment  Religare Board strengthened with the induction of Mr. Stuart D Pearce and Ms. Kathryn Matthews. Their rich experience will provide a fillip to our efforts towards becoming a leading emerging market financial services player ‒ Mr. Stuart D Pearce  Mr

  9. Slide 9: Consolidated Income Statement

    Consolidated Income Statement Change Change (in Rs mn) Q1 FY 11 Q4 FY 10 Q-o-Q (%) Q1 FY 10 Y-o-Y (%) Income from Operations 4,057 4,884 (17%) 2,732 48% Other Operating Income 419 428 (2%) 420 (0.1%) Total Income 4,476 5,312 (16%) 3,152 42% Personnel Expenses 1,467 1,829 (20%) 924 59% Operating and

  10. Slide 10: Key Financial Statistics Q1 FY11

    Key Financial Statistics Q1 FY 11 Revenues (in Rs mn) EBITDA (in Rs mn) 6,000 1,800 1,702 5,312 1,600 5,000 4,476 1,400 1,272 4,000 1,200 3,152 1,000 936 3,000 800 2,000 600 400 1,000 200 0 0 Q1 FY10 Q4 FY10 Q1 FY11 Q1 FY 10 Q4 FY10 Q1 FY11 Key Ratios Q1 FY11 Q4 FY 10 Q1 FY10 EBITDA Margin (%) 28% 3

  11. Slide 11: Consolidated Balance Sheet

    Consolidated Balance Sheet Abridged Balance Sheet (in Rs mn) As on As on As on Jun 30, Mar 31, Jun 30, 2010 2010 2009 Owner's Fund 25,713 26,126 25,844 Share Capital 1,529 1,530* 19,015* Reserves and Surplus 24,184 24,596 6,828 Loan Funds 76,922 55,720 24,014 Secured Loans 20,454 15,755 6,198 Unsecu

  12. Slide 12: Highlights Q1 FY11 (1/2)

    Highlights Q1 FY 11 (1/2)  Equity Broking  Equity Broking market share for Q1 FY11 increased to 3.47% in comparison to 3.41% in Q4 FY10, however blended yields were under pressure due to shift in market towards Futures & Options  Average daily equity broking turnover stood at Rs 37.67 billion in

  13. Slide 13: Highlights Q1 FY11 (2/2)

    Highlights Q1 FY 11 (2/2)  Wealth Management  Total Assets under Management for Religare Macquarie Wealth Management business stood at circa Rs 11.12* billion as on June 30, 2010 as compared to Rs 8.01* billion on March 31, 2010  510 new client accounts opened in the last quarter and total number

  14. Slide 14: Business and Corporate Governance Structure

    Religare Enterprises Business and Corporate Governance Structure Regulator Legend Securities & Exchange Board of India Insurance Regulatory & Development Authority Board comprised of Forward Markets Commission Religare Enterprises Ltd. Management and Reserve Bank of India Independent Directors  Rel

  15. Slide 15: Our Businesses

    Our Businesses i SS RELIGARE Values that bind

  16. Slide 16: Key Lines of Business

    Key Lines of Business Company Business Product/Service Religare Securities Limited Broking Equity Religare Commodities Limited Broking Commodity Religare Finvest Limited Lending Asset & Capital Markets Finance Religare Insurance Broking Distribution Insurance Limited Religare AMC Limited Asset Manag

  17. Slide 17: Key Lines of Business

    Key Lines of Business Company Business Product/Service Religare Securities Limited Broking Equity Religare Commodities Limited Broking Commodity Religare Finvest Limited Lending Asset & Capital Markets Finance Religare Insurance Broking Distribution Insurance Limited Religare AMC Limited Asset Manag

  18. Slide 18: Religare Securities

    Religare Securities Improved market share in contracting cash equity market Quarterly Financial Performance : Q1FY11, Rs mn Key Highlights: Q1FY11 Particulars Q1FY11 Q4FY10 Q1FY10 • Overall retail market volumes increased by 10% in Q1 FY11, primarily driven by the Options segment, which increased by

  19. Slide 19: Religare Securities

    Religare Securities Continued Distribution Expansion and Client Acquisition Equity Broking (Cash + F&O) Business Location Network (owned +franchisee) 37.7 37.7 2,000 1,852 38 1,747 36.0 1,686 35.6 1,558 1,591 36 1,500 34 32.9 1,333 1,439 Franchises 32 1,000 1,196 1,209 1,300 30 28 500 Own 26 362 382

  20. Slide 20: Religare Securities

    Religare Securities Rising Equity Market Share Average daily number of Trades (000s) Equity Trading Market Share (%) 800 744 5% 700 680 4.1% 596 4% 3.9% 3.6% 600 556 3.4% 3.5% 519 500 3% 400 2% 300 200 1% 100 0% 0 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Sales

  21. Slide 21: Key Lines of Business

    Key Lines of Business Company Business Product/Service Religare Securities Limited Broking Equity Religare Commodities Limited Broking Commodity Religare Finvest Limited Lending Asset & Capital Markets Finance Religare Insurance Broking Distribution Insurance Limited Religare AMC Limited Asset Manag

  22. Slide 22: Religare Commodities

    Religare Commodities Continued growth in client base Quarterly Financial Performance : Q1FY11, Rs mn Key Highlights: Q1FY11 Particulars Q1FY11 Q4FY10 Q1FY10 • Steady business with revenues showing slight increase of 0.5% as compared to last quarter and Income from Operations 182 175 136 34% growth Y

  23. Slide 23: Religare Commodities

    Religare Commodities Continued growth in client base Average Daily Commodity Turnover (in Rs mn) Sales & Dealing Team 15,990 15,914 800 786 16,000 750 740 15,000 14,053 695 14,000 700 13,000 12,714 650 12,243 12,000 601 602 600 11,000 550 Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Jun 09 Sep 09 Dec 09

  24. Slide 24: Key Lines of Business

    Key Lines of Business Company Business Product/Service Religare Securities Limited Broking Equity Religare Commodities Limited Broking Commodity Religare Finvest Limited Lending Asset & Capital Markets Finance Mutual fund Distribution Religare Insurance Broking Distribution Insurance Limited Religar

  25. Slide 25: Religare Finvest

    Religare Finvest Rapidly growing Loan Book & Pan India Third Party Distribution Quarterly Financial Performance : Q1FY11, Rs mn Key Highlights: Q1FY11 Particulars Q1FY11 Q4FY10 Q1FY10 • Growth in income was driven primarily by increase in book size Income from Operations 1,644 1,413 804 • Asset Fina

  26. Slide 26: Religare Finvest

    Religare Finvest Rapidly growing Loan Book  The Lending book size as at June 30 2010 was at Rs 53.71 billion as compared to Rs 40.83 billion as on March 31 2010. Lending segment includes Asset Finance business, Loans against Securities businesses and ICDs.  The Asset Finance book stood at Rs. 25.8

  27. Slide 27: Religare Finvest

    Religare Finvest Rapidly growing Loan Book Asset Finance Book Size (in Rs mn) LAS and Asset Finance Clients 30,000 16,000 15,008 25,795 25,000 14,000 12,765 12,912 2,074 LAS 4,636 PL & SME 11,667 11,940 12,000 2,174 2,177 20,000 17,662 2,389 2,259 6,845 CA 10,000 15,000 3,873 12,192 8,000 Asset 8,69

  28. Slide 28: Key Lines of Business

    Key Lines of Business Company Business Product/Service Religare Securities Limited Broking Equity Religare Commodities Limited Broking Commodity Religare Finvest Limited Lending Asset & Capital Markets Finance Mutual fund Distribution Religare Insurance Broking Distribution Insurance Limited Religar

  29. Slide 29: Religare Insurance Broking

    Religare Insurance Broking Premier Composite Insurance Broker in India Quarterly Financial Performance : Q1FY11, Rs mn Key Highlights: Q1FY11 Particulars Q1FY11 Q4FY10 Q1FY10  Total premium collections of over Rs 509 mn in Q1 FY11 Income from Operations 45 81 32 Other Income 0 0 0 Total Income 45 8

  30. Slide 30: Key Lines of Business

    Key Lines of Business Company Business Product/Service Religare Securities Limited Broking Equity Religare Commodities Limited Broking Commodity Religare Finvest Limited Lending Asset & Capital Markets Finance Mutual fund Distribution Religare Insurance Broking Distribution Insurance Limited Religar

  31. Slide 31: Religare AMC

    Religare AMC Key Highlights Quarterly Financial Performance : Q1FY11, Rs mn Key Highlights: Q1FY11 Particulars Q1FY11 Q4FY10 Q1FY10 • Macro factors had a dominant influence on Q1 FY11 performance Income from Operations 103 159 104 • Redemption pressure from banks on account of Other Income 1 7 3 the

  32. Slide 32: Religare AMC

    Religare AMC Operating in a challenging environment Overall market AUM Portfolio Management Services AUM (in Rs mn) Religare MF AUM* (in Rs billions) declined by 10% from March to June 2010 158.7 160 2,200 138.5 2,121 140 129.4 2,088 2,100 2,047 120 109.2 100.3 100 2,000 80 146.7 128.7 118.5 1,900 1

  33. Slide 33: Key Lines of Business

    Key Lines of Business Company Business Product/Service Religare Securities Limited Broking Equity Religare Commodities Limited Broking Commodity Religare Finvest Limited Lending Asset & Capital Markets Finance Mutual fund Distribution Religare Insurance Broking Distribution Insurance Limited Religar

  34. Slide 34: RCML executing the plan to be an Emerging Market Investment Bank

    RCML is aggressively executing the business plan to be an Emerging Market Investment Bank Business Update New Hires Ex-employers • On track for the implementation of the blueprint for building a pan-Emerging Markets Investment Bank Martin Newson – Global CEO developed in consultation with McKinsey &

  35. Slide 35: Religare Capital Markets

    Religare Capital Markets Aggressively executing business plan Quarterly - RCML India : Q1FY11, Rs mn Quarterly – RCML Overseas : Q1FY11, Rs mn Particulars Q1FY11 Q4FY10 Q1FY10 Particulars Q1FY11 Q4FY10 Q1FY10 Income from Operations 156 285 28 Income from Operations 200 950 178 Other Income 10 (10) 7

  36. Slide 36: Key Lines of Business

    Key Lines of Business Company Business Product/Service Religare Securities Limited Broking Equity Religare Commodities Limited Broking Commodity Religare Finvest Limited Lending Asset & Capital Markets Finance Mutual fund Distribution Religare Insurance Broking Distribution Insurance Limited Religar

  37. Slide 37: Religare Macquarie Wealth Management

    Religare Macquarie Wealth Management Active Wealth Management Quarterly Financial Performance * : Q1FY11, Rs mn Key Highlights: Q1FY11 Particulars Q1FY11 Q4FY10 Q1FY10  Total Assets under Management for Religare Macquarie Wealth Management business stood at Income from Operations 69 110 38 circa Rs

  38. Slide 38: Key Lines of Business

    Key Lines of Business Company Business Product/Service Religare Securities Limited Broking Equity Religare Commodities Limited Broking Commodity Religare Finvest Limited Lending Asset & Capital Markets Finance Mutual fund Distribution Religare Insurance Broking Distribution Insurance Limited Religar

  39. Slide 39: AEGON Religare Life Insurance

    AEGON Religare Life Insurance Business Update Quarterly Financial Performance* : Q1FY11, Rs mn Key Highlights: Q1FY11 Particulars Q1FY11 Q4FY10 Q1FY10  AEGON Religare Life insurance commenced operations in July 2008 and has 57 branches in total as of June 30, 2010 Income from Operations 419 840 118

  40. Slide 40: AEGON Religare Life Insurance Key Highlights

    AEGON Religare Life Insurance Key Highlights Distribution mix Q1 FY11  AEGON Religare launched Health plan in Q1 FY11 Corporate Agents & and commenced work on setting up new branches Brokers Agency Distribution 12% 31%  ARLI continued to invest in distribution to develop a balanced multi channel a

  41. Slide 41: Appendix – Entity Wise Balance Sheet

    Appendix – Entity Wise Balance Sheet 41

  42. Slide 42: Entity Wise Balance Sheet (1/5)

    Entity Wise Balance Sheet (1/5) RSL – Balance Sheet as on Jun 30, 2010 RCL – Balance Sheet as on Jun 30, 2010 Jun 30, Jun 30, (in mn) 2010 (in mn) 2010 Share Capital 395 Share Capital 20 Reserves and Surplus 3,998 Reserves and Surplus 176 Loan Funds 14,626 Loan Funds 0 Total 19,019 Total 196 Fixed A

  43. Slide 43: Entity Wise Balance Sheet (2/5)

    Entity Wise Balance Sheet (2/5) RFL – Balance Sheet as on Jun 30, 2010 RIBL – Balance Sheet as on Jun 30, 2010 Jun 30, Jun 30, (in mn) 2010 (in mn) 2010 Share Capital 1,703 Share Capital 480 Reserves and Surplus 13,274 Reserves and Surplus (428) Loan Funds 54,464 Loan Funds 95 Total 69,442 Total 147

  44. Slide 44: Entity Wise Balance Sheet (3/5)

    Entity Wise Balance Sheet (3/5) RCML India – Balance Sheet as on Jun 30, 2010 RCML – Overseas – Balance Sheet as on Jun 30, 2010 Jun 30, Jun 30, (in mn) 2010 (in mn) 2010 Share Capital 816 Share Capital 3,899 Reserves and Surplus 3,253 Reserves and Surplus (1,480) Loan Funds 191 Loan Funds 5,565 Tot

  45. Slide 45: Entity Wise Balance Sheet (4/5)

    Entity Wise Balance Sheet (4/5) RAMC – Balance Sheet as on Jun 30, 2010 RMWML* – Balance Sheet as on Jun 30, 2010 Jun 30, Jun 30, (in mn) 2010 (in mn) 2010 Share Capital 503 Share Capital 900 Reserves and Surplus (224) Reserves and Surplus (690) Loan Funds 0 Loan Funds 0 Total 278 Total 210 Fixed As

  46. Slide 46: Entity Wise Balance Sheet (5/5)

    Entity Wise Balance Sheet (5/5) ARLI* – Balance Sheet as on Jun 30, 2010 Jun 30, (in mn) 2010 Share Capital 7,000 Reserves and Surplus (4,748) Loan Funds 0 Policy Holder funds 1,796 Total 4,048 Fixed Assets 389 Investments 3,293 Deferred Tax Assets (Net) 0 Net Current Assets 366 Total 4,048 *Reflect

  47. Slide 47: Thank You

    Thank You 9 SE RELIGARE Values that bind

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