Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Q2 FY2025 Earnings Presentation
52 slides from Edelweiss Financial Services's earnings presentation, Oct 1, 2024
Slide 1: Edelweiss Financial Services Earnings update – Quarter ended Sep 24
Edelweiss Financial Services Limited Earnings update – Quarter ended Sep 24
Slide 2: Contents
Contents 1 Overview for quarter ended Sep 24 3 2 Performance highlights 6 3 Important updates 19 4 Business performance 27 5 Governance & corporate responsibility 45 Please refer to the Strategic Overview on Businesses update 2
Slide 3: Overview Quarter ended Sep 24
Overview Quarter ended Sep 24
Slide 4: Edelweiss at a glance – quarter ended Sep 24
Edelweiss at a glance – quarter ended Sep 24 Net Worth Ex-Insurance PAT INR 6,386 Cr INR 163 Cr Net Debt BVPS INR 11,810 Cr INR 53 (FV ₹1) 4
Slide 5: Diversified with seven high-quality businesses
Diversified with seven high-quality businesses Edelweiss Financial Services Ltd (EFSL) Asset Nido Home Zuno General Life EAAA Mutual Fund NBFC Reconstruction Finance Insurance Insurance EAAA India Edelweiss Edelweiss Asset ECL Finance Nido Home Zuno General Edelweiss Life Alternatives Asset Reconstr
Slide 6: Performance Highlights
Performance Highlights (. Edelweiss Ideas create, values protect
Slide 7: Performance highlights – quarter ended Sep 24
Performance highlights – quarter ended Sep 24 1 Healthy profitability with steady growth in key business metrices Consol PAT grew by 45% YoY; Ex-Insurance PAT at INR 163 Cr EAAA ARR* AUM up 13% YoY to INR 44,900 Cr; AUM up 15% YoY to INR 57,250 Cr MF Equity AUM up 73% YoY to INR 59,200 Cr; AUM up 23
Slide 8: Healthy profitability: Ex-Insurance PAT at INR 163 Cr
1 Healthy profitability: Ex-Insurance PAT at INR 163 Cr PAT for the quarter in INR Cr Asset EFSL Consol EAAA Mutual Fund Reconstruction 110 91 58 81 15 45 12 76 Sep 23 Sep 24 Sep 23 Sep 24 Sep 23 Sep 24 Sep 23 Sep 24 45% YoY 28% YoY 21% YoY 12% YoY 8
Slide 9: Earnings distribution across businesses
1 Earnings distribution across businesses INR Cr Quarter Ended Six Month Ended Business Sep 24 Sep 23 Sep 24 Sep 23 EAAA 58 45 124 91 Mutual Fund 15 12 41 23 Asset Reconstruction 91 81 176 161 NBFC 11 35 37 69 Nido Home Finance 3 3 3 7 Zuno General Insurance (11) (31) (21) (71) Life Insurance (54) (
Slide 10: Steady growth in key business metrices (1/3)
1 Steady growth in key business metrices (1/3) EAAA ARR AUM at INR 44,900 Cr, up 13% YoY; AUM at INR 57,250 Cr, up 15% YoY Award winning asset manager – Real Assets portfolio won 3 innovation and 1 CSR Golden Star Awards Mutual Fund Equity AUM at INR 59,200 Cr, up 73% YoY; AUM at INR 1,40,500 Cr, up
Slide 11: Steady growth in key business metrices (2/3)
1 Steady growth in key business metrices (2/3) NBFC Disbursed INR 66 Cr of retail loans in the quarter; INR 266 Cr in six months, 79% via CLM Wholesale book reduced by 34% YoY to INR 3,750 Cr Nido Home Finance Disbursed INR 292 Cr in the quarter; INR 610 Cr in six months, ~20% via CLM Partnership wi
Slide 12: Steady growth in key business metrices (3/3)
1 Steady growth in key business metrices (3/3) Zuno General Insurance Gross Written Premium up 27% YoY to INR 243 Cr in the quarter, one of the fastest growing in the industry Losses declined by 66% YoY in the quarter Life Insurance Gross Premium of INR 481 Cr in the quarter; Ind. APE of INR 130 Cr,
Slide 13: Customer reach expanded by 45% YoY
2 Customer reach expanded by 45% YoY in Lakhs Customer Reach Mutual Fund Folios Zuno GI Customers 91 62 20 63 43 12 Sep 23 Sep 24 Sep 23 Sep 24 Sep 23 Sep 24 45% YoY 64% YoY 43% YoY 13
Slide 14: With a 12% YoY growth in customer assets
2 With a 12% YoY growth in customer assets in INR Cr Customer Assets EAAA AUM Mutual Fund AUM 2,26,660 1,40,500 57,250 2,01,650 50,000 1,14,000 Sep 23 Sep 24 Sep 23 Sep 24 Sep 23 Sep 24 12% YoY 15% YoY 23% YoY 14
Slide 15: Robust balance sheet with well capitalised businesses
3 Robust balance sheet with well capitalised businesses Business Metric Value NBFC Capital Adequacy 46.3% Nido Home Finance Capital Adequacy 37.6% Asset Reconstruction Capital Adequacy 69.7% Zuno General Insurance Solvency Ratio 164% Life Insurance Solvency Ratio 164% 15
Slide 16: Net debt reduced by INR 2,250 Cr YoY
3 Net debt reduced by INR 2,250 Cr YoY Net Debt (INR Cr) INR Cr 16% Business Sep 24 14,060 NBFC 3,650 11,810 Nido Home Finance 1,465 EAAA 385 Asset Reconstruction 830 Corporate 5,480 Net Debt 11,810 Sep 23 Sep 24 16
Slide 17: Cash flow plan
3 Cash flow plan INR Cr Oct 24 to Sep 25 Opening Available Liquidity (A) 4,000 Inflows Expected Inflows 7,700 Fresh Borrowings 1,500 Total Inflows (B) 9,200 Outflows Repayments 6,600 Disbursements 3,300 Total Outflows (C) 9,900 Closing Available Liquidity (A+B-C) 3,300 17
Slide 18: Assets in each tenor range adequately cover liabilities
3 Assets in each tenor range adequately cover liabilities INR Cr Assets Liabilities Excess / (Gap) Up to 1 year 12,400 11,000 1,400 1-3 years 10,600 10,500 100 3 years+ 9,700 4,800 4,900 18
Slide 19: Important Updates
Important Updates 1. Update on Key Priorities 2. EAAA Value Unlock 3. Regulatory Update
Slide 20: Update on key priorities
1 Update on key priorities Scale up of profitability in EAAA and Mutual Fund Insurance businesses to breakeven by FY27 Focused reduction in net debt 20
Slide 21: Scale up of profitability in EAAA and Mutual Fund
1 Scale up of profitability in EAAA and Mutual Fund INR Cr EAAA H1 PAT Mutual Fund H1 PAT 124 41 53 11 4 5 Sep 20 Sep 22 Sep 24 Sep 20 Sep 22 Sep 24 123% CAGR 84% CAGR 21
Slide 22: Insurance businesses to breakeven by FY27
1 Insurance businesses to breakeven by FY27 INR Cr Zuno General Insurance H1 PAT Life Insurance H1 PAT Sep 20 Sep 24 Sep 20 Sep 24 -21 -103 -41 -126 50% 18% On track to breakeven by FY27 22
Slide 23: Reduction in net debt
1 Reduction in net debt INR Cr 70% 40,000 18,400 11,810 Mar 19 Mar 22 Sep 24 Reduced by ~INR 28,000 Cr in last 5 years 23
Slide 24: EAAA value unlock
2 EAAA value unlock Process initiated upon significant inbound investor interest Plan a stake sale of 10-20%; expect to raise INR 1,500 - 2,000 Cr This stake sale will aid in – Debt reduction Establishing market value for EFSL of the business Given market buoyancy and positive feedback received,
Slide 25: EARC – RBI Order
3 EARC – RBI Order • Remedial plan submitted with implementation timelines Current • RBI completed inspection in the last quarter Status • Final report from the regulator is awaited • EARC board closely monitoring the execution plan • Recoveries continue as per plan; recovered more than INR 2,800 Cr
Slide 26: ECLF – RBI Order
3 ECLF – RBI Order • Remedial plan submitted with implementation timelines Current • RBI inspection done in the last quarter, awaiting the final report Status • ECLF board actively overseeing the execution plan Business • Wholesale book reduction continues in the normal course of business; Update bo
Slide 27: Business Performance
Business Performance Ge Edelweiss Ideas create, values protect
Slide 28: EAAA: Business performance snapshot
EAAA EAAA: Business performance snapshot Key Metrics for the quarter Business Update • Annual Recurring Revenue AUM at INR 44,900 Cr, up 13% ARR AUM (INR Cr) 44,900 YoY • AUM grew by 15% YoY to INR 57,250 Cr AUM (INR Cr) 57,250 • Real Assets strategy acquired ~INR 1,600 Cr worth of assets o Acquisit
Slide 29: EAAA: Financial performance snapshot
EAAA EAAA: Financial performance snapshot INR Cr Quarter ended Quarter ended Sep 24 Sep 23 AUM 57,250 50,000 ARR AUM 44,900 39,800 Equity 869 645 Gross Revenue 208 117 Opex 134 62 Profit After Tax 58 45 29
Slide 30: EAAA assets overview
EAAA EAAA assets overview AUM – Strategy wise AUM – Geography wise ARR AUM – Strategy wise 2% 6% 2% 25% 29% 21% 41% INR 57,250 Cr INR 57,250 Cr INR 44,900 Cr 57% 69% 48% North America India Credit Real Assets Others Credit Real Assets Others Europe Rest of the world 30
Slide 31: Mutual Fund: Business performance snapshot
Mutual Fund Mutual Fund: Business performance snapshot Key Metrics for the quarter Business Update Equity AUM • Equity AUM at INR 59,200 Cr, up 73% YoY 59,200 (INR Cr) • AUM grew by 23% YoY to INR 1,40,500 Cr; market share of 2.1% as on Sep 24 AUM (INR Cr) 1,40,500 • Net equity inflows of INR 4,100
Slide 32: Mutual Fund: Financial performance snapshot
Mutual Fund Mutual Fund: Financial performance snapshot INR Cr Quarter ended Quarter ended Sep 24 Sep 23 AUM 1,40,500 1,14,000 Equity AUM 59,200 34,200 Equity 243 224 Revenue 61 70 Opex 41 57 Profit After Tax 15 12 32
Slide 33: Robust growth in AUM and customer base
Mutual Fund Robust growth in AUM and customer base MF Equity AUM (INR Cr) MF Debt AUM (INR Cr) 59,200 78,000 81,300 62,800 34,200 26,600 Sep 22 Sep 23 Sep 24 Sep 22 Sep 23 Sep 24 SIP Book (INR Cr) Active Folios (# in Lakhs) 312 20 175 11 12 140 Sep 22 Sep 23 Sep 24 Sep 22 Sep 23 Sep 24 Growing SIP b
Slide 34: Asset Reconstruction: Business performance snapshot
ARC Asset Reconstruction: Business performance snapshot Key Metrics for the quarter Business Update • Recovered INR 1,526 Cr in the quarter; INR 2,857 Cr in Equity (INR Cr) 3,326 six months AUM (INR Cr) 28,910 • Net D/E improved to 0.2x, from 2.8x in Mar-19 Capital employed 4,058 (INR Cr) Recoveries
Slide 35: Asset Reconstruction: Financial performance snapshot
ARC Asset Reconstruction: Financial performance snapshot INR Cr Quarter ended Quarter ended Sep 24 Sep 23 AUM 28,910 37,650 Capital Employed 4,058 4,587 Wholesale assets 3,487 3,876 Retail assets 571 711 Equity 3,326 2,956 Gross Revenue 240 223 Opex 36 32 Profit After Tax 91 81 Edelweiss’ share in P
Slide 36: NBFC: Business performance snapshot
NBFC NBFC: Business performance snapshot Key Metrics for the quarter Business Update Equity (INR Cr) 3,319 • Wholesale book reduced by 34% YoY to INR 3,750 Cr • Partnership with Central Bank of India, IDFC First Bank and AUM (INR Cr) 5,962 Standard Chartered Bank continues to deepen • Disbursed INR
Slide 37: NBFC: Financial performance snapshot
NBFC NBFC: Financial performance snapshot INR Cr Quarter ended Quarter ended Sep 24 Sep 23 AUM 5,962 6,714 Gross Loan Book 1,753 3,046 Gross Revenue 184 338 Net Revenue 23 128 Opex 42 58 Credit Cost (30) 19 Profit After Tax 11 35 GNPA 2.47% 2.39% NNPA 1.77% 1.39% 37
Slide 38: Wholesale reduction on track
NBFC Wholesale reduction on track ECLF wholesale loan assets INR Cr 60% 9,500 3,750 1,000 Sep 22 Sep 24 Sep 26E Reduction will continue in the normal course of business 38
Slide 39: Nido Home Finance: Business performance snapshot
Nido Nido Home Finance: Business performance snapshot Key Metrics for the quarter Business Update • Partnership with State Bank of India continues to deepen Equity (INR Cr) 813 with ongoing disbursals • Disbursed INR 292 Cr in the quarter AUM (INR Cr) 3,997 • Asset quality continues to be healthy –
Slide 40: Nido Home Finance: Financial performance snapshot
Nido Nido Home Finance : Financial performance snapshot INR Cr Quarter ended Quarter ended Sep 24 Sep 23 AUM 3,997 3,836 Gross Loan Book 3,168 2,906 Gross Revenue 127 113 Net Revenue 48 38 Opex 42 34 Credit Cost 2 (0) Profit After Tax 3 3 GNPA 2.24% 2.21% NNPA 1.58% 1.62% 40
Slide 41: Zuno General Insurance: Business performance snapshot
Zuno Zuno General Insurance: Business performance snapshot Key Metrics for the quarter Business Update • One of the fastest growing player with gross direct Equity (INR Cr) 304 premium income (GDPI) growth of 28% YoY • Gross written premium (GWP) of INR 243 Cr, up 27% YoY GWP (INR Cr) 243 • Motor se
Slide 42: Zuno General Insurance: Financial performance snapshot
Zuno Zuno General Insurance: Financial performance snapshot INR Cr Quarter ended Quarter ended Sep 24 Sep 23 Gross Written Premium 243 191 Net Premium Income 149 93 Investment Income & Other 72 39 Income Total Income 221 131 Policy benefits & insurance policy 126 73 liability Other expenses 105 90 P
Slide 43: Life Insurance: Business performance snapshot
Life Insurance Life Insurance: Business performance snapshot Key Metrics for the quarter Business Update • Gross premium of INR 481 Cr in the quarter Equity (INR Cr) 825 • Individual APE of INR 130 Cr, up 14% YoY Individual APE (INR Cr) 130 • AUM at INR 8,722 Cr, up 21% YoY • Traditional Par and Non
Slide 44: Life Insurance: Financial performance snapshot
Life Insurance Life Insurance: Financial performance snapshot INR Cr Quarter ended Quarter ended Sep 24 Sep 23 Gross Premium 481 451 Net Premium Income 472 441 Investment Income & Other 339 196 Income Total Income 811 637 Policy benefits & insurance policy 657 505 liability Other expenses 208 193 Pr
Slide 45: Governance & Corporate Responsibility
Governance & Corporate Responsibility
Slide 46: 7 Member Board with 4 Independent Directors
7 Member Board with 4 Independent Directors Mr. Ashok Kini Independent Director • Former Managing Director (National Banking Group) State Bank of India • Served as an advisor to the Thorat Committee on Financial Inclusion at RBI • 35 years of banking experience Dr. Ashima Goyal Independent Director
Slide 47: Significant institutional ownership
Significant institutional ownership Shareholding Pattern as on Sep 30, 2024 Key Shareholders Percent 1 TIAA CREF Funds 7.2% Employee Trust 2 CLSA Global Markets 7.1% DIIs, Non 2.7% Promoter Group Institutions 3 LIC 2.6% & Others 32.7% 4 Vanguard Group 2.5% 33.1% 5 Flowering Tree Investment Managemen
Slide 48: Our contribution to building a more sustainable tomorrow
Our contribution to building a more sustainable tomorrow Under the leadership of EdelGive Foundation, we have… INR 1,379 Cr mobilized Partnered with over 277 Assisted over 60% of EdelGive’s Ensured long term through commitments high caliber NGOs NGO partners to grow at a CAGR association with averag
Slide 49: Our investment in communities
Our investment in communities EdelGive Foundation’s commitment to investing in communities 74 Districts Sustainable Women across 13 States Quality Education Livelihoods Empowerment 20 lakh children impacted 2.53 lakh Individuals trained 2.56 lakh women supported 31,000 schools reached 2,516 watershe
Slide 50: Trusted partner: EdelGive funding partners & networks
Trusted partner: EdelGive funding partners & networks Foundations, Corporates and HNIs partner with Edelgive Platform for their philanthropic allocation 50
Slide 51: Safe Harbour
Safe Harbour DISCLAIMER : This presentation and the discussion may contain certain words or phrases that are forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Financial Services Ltd. or any of its subsidiaries and associate companies (“Ed
Slide 52: Safe Harbour
Safe Harbour Slide 4: Net worth includes MI, Ex-Insurance PAT is post MI Slide 4,7,8,9,22: Ex-Insurance PAT is post-MI; Business PATs are pre-MI Slide 4,7,16,23: Debt includes accrued interest and excludes CBLO and securitisation liabilities Slide 5: Equity stakes are rounded off to nearest integer
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