Slides
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Edelweiss Ideas create , values protect Edelweiss Financial Services Limited Earnings update - Quarter ended Jun 26
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CONTENTS Overview 03 Performance highlights 06 Business performance 22 Governance & corporate responsibility 39 Please refer to the detailed business update of EAAA India Alternatives
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Quarter ended Jun 26 Overview 3
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Edelweiss at a glance Net Worth Consol PAT (Post MI) Net Debt BVPS INR 5,959 Cr INR 11,160 Cr INR 57 (FV ₹1)INR 122 Cr 4
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Diversified with seven high- quality businesses Edelweiss Financial Services Ltd (EFSL) Alternative Asset Mgt Mutual Fund Asset Reconstruction NBFC General Insurance Life Insurance EAAA India Alternatives Ltd (EAAA) Edelweiss Asset Management Ltd (EAML) Edelweiss Asset Reconstruction Company Ltd (EARC) ECL Finance Ltd (ECLF) Nido Home Finance Ltd (NHFL) Zuno General Insurance Limited (ZGIL) Edelweiss Life Insurance Company Ltd (ELI) Housing Finance Equity: 1,160 Cr EFSL Stake: 96% Equity: 255 Cr EFSL Stake: 85% Equity: 1,727 Cr EFSL Stake: 84% Equity: 1,829 Cr EFSL Stake: 100% Equity: 849 Cr EFSL Stake: 100% Equity: 412 Cr EFSL Stake: 100% Equity: 655 Cr EFSL Stake: 83% 5 In INR
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6 Quarter ended Jun 26 Performance Highlights
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1 3 Robust growth in consol PAT and key metrics of operating businesses Resilient balance sheet with well-capitalised businesses Performance highlights Consol PAT (Post MI) for the quarter grew by 83% YoY to INR 122 Cr Alternative Asset Management Fee Paying AUM (FPAUM) grew by 27% YoY to INR 48,623 Cr Mutual Fund Equity AUM increased by 32% YoY to INR 96,000 Cr; Crossed INR 1 Tn in Jul 26 7 2 Our total customer reach increased to 14 Mn, up 30% YoY Customer assets at INR 2.8 Tn, up 23% YoY 4 On track on our key priorities for FY27 Corporate net debt declined by 10% YoY to INR 5,725 Cr BVPS at INR 57, up 19% YoY
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Earnings distribution across businesses 8 1 INR Cr Profit after Tax Alternative Asset Management Mutual Fund Asset Reconstruction NBFC Housing Finance General Insurance Life Insurance Operating Business PAT Corporate PAT EFSL Consolidated PAT (Pre MI) (Less) Minority Shareholders’ PAT EFSL Consolidated PAT (Post MI) Quarter Ended Jun 26 Jun 25 81 56 37 28 76 90 4 6 (5) 4 (4) (6) (30) 2* 161 179 (26) (76) 134 103 12 36 122 67 *Quarter ended Jun 25 PAT of Life Insurance includes one-off treasury gains of INR 49 Cr 83% YoY
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Key business highlights (1/2) Mutual Fund Equity AUM INR 96,000 Cr up 32% YoY SIP Book INR 696 Cr up 63% YoY Recoveries INR 304 Cr Retail assets acquisition INR 300 Cr Asset Reconstruction 9 Alternative Asset Mgt FPAUM INR 48,623 Cr up 27% YoY PAT INR 81 Cr up 45% YoY 1
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Key business highlights (2/2) NBFC MSME Disbursals INR 353 Cr tripled YoY Wholesale Book reduced to INR 600 Cr Housing Finance Disbursals INR 218 Cr AUM INR 4,900 Cr up 14% YoY 10 1 General Insurance GWP INR 415 Cr up 58% YoY Policies issued 2,41,236 up 68% YoY Life Insurance Gross Premium INR 287 Cr AUM INR 10,933 Cr up 13% YoY
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Total customer reach grew by 30% YoY In Lakhs 49% YoY Total Customer Reach 28% YoY30% YoY Mutual Fund Folios General Insurance Customers 11 2 110 143 Jun 25 Jun 26 27 40 Jun 25 Jun 26 76 97 Jun 25 Jun 26
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With a robust growth in customer assets INR Cr 23% YoY 12 2 2,27,437 2,80,820 Jun 25 Jun 26 Customer Assets
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Strong balance sheet with well capitalised businesses Business Capital Ratios NBFC Capital Adequacy 27% Housing Finance Capital Adequacy 30% Asset Reconstruction Capital Adequacy 36% General Insurance Solvency Ratio 164% Life Insurance Solvency Ratio 189% 13 3
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Net debt across businesses Business Net Debt Housing Finance 2,075 NBFC 1,955 Asset Reconstruction 1,185 Alternative Asset Management 220 INR Cr 14 3 Corporate 5,725 Corporate net debt declined by 10% YoY Net Debt 11,160
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Continue to maintain surplus liquidity cover Opening Available Liquidity (A) 6,100 Inflows Expected Inflows 8,900 Fresh Borrowings 3,000 Total Inflows (B) 11,900 Outflows Repayments 7,600 Disbursements 4,700 Total Outflows (C) 12,300 Closing Available Liquidity (A+B-C) 5,700 INR Cr Jul 26 to Jun 27 15 3
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Assets in each tenor range adequately cover liabilities Up to 1 year 1-3 years 3 years+ Assets Liabilities Excess / (Gap) 10,300 9,400 900 13,600 12,800 7,400 3,100 4,300 INR Cr 16 800 3
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Update on key focus areas for FY27 17 Listing of EAAA on track; plan to list in Q3 of FY271 Investment by Carlyle in Nido is progressing; closure expected in September 20262 Scaling up PAT in Asset Management businesses led by growth in Fee Paying AUM & Equity AUM3 On track to achieve breakeven in both Insurance businesses4 Calibrated scale up in Credit businesses driven by steady ramp up in disbursals5 4
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Scale up in profits of Asset Management businesses 18 PAT for quarter ended June INR Cr 56 81 Jun 25 Jun 26 28 37 Jun 25 Jun 26 Alternative Asset Mgt Mutual Fund 45% YoY 33% YoY
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Insurance businesses on track to breakeven: Losses 37% 19 PAT for quarter ended June INR Cr (6) (4) (47) (30) Jun 25 Jun 26 General Insurance Life Insurance 37% (34) (53) Life Insurance PAT for quarter ended Jun 25 is excluding one-off treasury gains of INR 49 Cr
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Calibrated scale up in MSME and Housing Finance AUM 20 AUM as of quarter ended June 908 1,763 Jun 25 Jun 26 4,301 4,900 Jun 25 Jun 26 NBFC (MSME) Housing Finance 94% YoY 14% YoY INR Cr
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Increase in RoE of Asset Reconstruction business 21 11% 13% Jun 25 Jun 26 Annualized RoE for quarter ended June
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22 Quarter ended Jun 26 Business Performance
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Alternative Asset Mgt: Business performance snapshot Key Metrics for the quarter 48,623Fee Paying AUM (INR Cr) 29% Annualized RoE 3,473 Realisation (INR Cr) 23 Fee Paying AUM grew by 27% YoY to INR 48,623 Cr PAT increased 45% YoY to INR 81 Cr Annualized RoE improved to 29%, up 700 bps YoY Achieved a full exit from EIYP, marking one of the first successful infrastructure yield fund exits by an Indian manager Strengthened Sekura, our asset operating and management platform, through enhanced operating capabilities 14,137 Deployment (INR Cr) Business Update
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Alternative Asset Mgt: Financial performance snapshot 24 INR Cr Quarter ended Jun 26 Fee Paying AUM 48,623 38,157 Equity 1,160 1,046 Annualized RoE 29% 22% Total Income 336 212 Opex 230 134 Profit after Tax 81 56 Quarter ended Jun 25
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Mutual Fund: Business performance snapshot 96,000Equity AUM (INR Cr) 1,76,200 AUM (INR Cr) 696 SIP Book (INR Cr) 40Retail Folios (Lakhs) 25 Key Metrics for the quarter Equity AUM at INR 96,000 Cr, up 32% YoY; Crossed INR 1 Tn in Jul 26 AUM grew by 16% YoY to INR 1,76,200 Cr Net equity inflows of INR 6,400 Cr in the quarter, up 2.5x YoY SIP book grew by 63% YoY to INR 696 Cr Retail folios at 40 lakhs, up 49% YoY SIF AUM crossed INR 6,000 Cr; Launched 2nd SIF fund - Altiva Equity Ex-Top 100 SIF Business Update
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Mutual Fund: Financial performance snapshot 26 Quarter ended Jun 26 AUM 1,76,200 1,52,200 Equity AUM 96,000 72,600 Equity 255 230 Revenue 113 77 Opex 62 43 Profit after Tax 37 28 Quarter ended Jun 25 INR Cr
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Robust growth in Equity AUM and customer base Equity AUM (INR Cr) SIP Book (INR Cr) Active Folios (# in Lakhs) 27 52,500 72,600 96,000 Jun 24 Jun 25 Jun 26 260 426 696 Jun 24 Jun 25 Jun 26 17 27 40 Jun 24 Jun 25 Jun 26
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Asset Reconstruction: Business performance snapshot 7,684 Fee Paying AUM (INR Cr) 1,727Equity (INR Cr) 304Recoveries (INR Cr) 28 Key Metrics for the quarter Business Update Recovered INR 304 Cr in the quarter Acquired INR 300 Cr retail assets in the quarter Share of retail assets in capital employed increased to 26% Annualized RoE for the quarter improved to 13%, up ~200 bps YoY 36% Capital Adequacy
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Asset Reconstruction: Financial performance snapshot 2929 INR Cr Quarter ended Jun 26 Fee Paying AUM 7,684 10,405 Capital Employed 3,009 2,743 Wholesale assets 2,240 2,144 Retail assets 769 599 Equity 1,727 2,945 Net Revenue 147 157 Opex 36 30 Profit after Tax 76 90 Quarter ended Jun 25
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NBFC: Business performance snapshot 2,752 AUM (INR Cr) 1,829Equity (INR Cr) 770Liquidity (INR Cr) 27% Capital Adequacy 30 Key Metrics for the quarter Disbursals of INR 353 Cr in MSME loans in the quarter, tripled YoY Gross loan book at INR 2,127 Cr, up 90% YoY Portfolio continues to strengthen – GNPA at 2.19%, improved 100 bps YoY NNPA at 1.23%, improved 60 bps YoY Wholesale book reduced to INR 600 Cr from peak of INR 18,000 Cr in Mar 19 Business Update
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NBFC: Financial performance snapshot 3131 AUM 2,752 3,379 Gross Loan Book 2,127 1,117 Gross Revenue 185 167 Net Revenue 74 36 Opex 59 32 Credit Cost 9 (2) Profit after Tax 4 6 GNPA 2.19% 3.16% NNPA 1.23% 1.84% Quarter ended Jun 26 Quarter ended Jun 25 INR Cr
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18,000 600 Mar 19 Jun 26 Successfully wound down the ECLF wholesale book 32 INR Cr ECLF Wholesale Book Wholesale book down to near zero from a peak of INR 18,000 Cr
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Housing Finance: Business performance snapshot 4,900 AUM (INR Cr) 849Equity (INR Cr) 245Liquidity (INR Cr) 30% Capital Adequacy 33 Key Metrics for the quarter AUM at INR 4,900 Cr, up 14% YoY Disbursals of INR 218 Cr in the quarter GNPA at 2.91% NNPA at 2.37% Business Update
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Housing Finance: Financial performance snapshot 34 AUM 4,900 4,301 Gross Loan Book 3,458 3,201 Gross Revenue 134 146 Net Revenue 50 60 Opex 50 52 Credit Cost 6 4 Profit after Tax (5) 4 GNPA 2.91% 2.50% NNPA 2.37% 2.06% Quarter ended Jun 26 Quarter ended Jun 25 INR Cr
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General Insurance: Business performance snapshot 415GWP (INR Cr) 2,41,236Policies Issued 164%Solvency Ratio 35 Key Metrics for the quarter Gross written premium (GWP) increased by 58% YoY in the quarter; Motor accounted for 52% of GWP Gross direct premium income (GDPI) grew 62% YoY in the quarter vs. industry growth at 11% Motor segment GDPI grew 71% YoY in the quarter vs. industry growth at 14% Issued 2,41,236 policies in the quarter, up 68% YoY Business Update 214Motor GWP (INR Cr)
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General Insurance: Financial performance snapshot 36 Gross Written Premium 415 263 Net Premium Income 196 154 Investment & Other Income 84 66 Total Income 280 220 Policy related expenses 158 132 Other expenses 126 95 Profit after Tax (4) (6) Quarter ended Jun 26 Quarter ended Jun 25 INR Cr
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Life Insurance: Business performance snapshot 74Individual APE (INR Cr) 10,933AUM (INR Cr) 189%Solvency Ratio 37 Key Metrics for the quarter 9,363Policies Issued Gross premium of INR 287 Cr in the quarter Issued 9,363 policies in the quarter Total AUM at INR 10,933 Cr, up 13% YoY Embedded Value at INR 2,306 Cr Par and Non-Par products constituted 77% of new business premium in the quarter Business Update
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Life Insurance: Financial performance snapshot 38 Gross Premium 287 286 Net Premium Income 277 276 Investment & Other Income 477 359 Total Income 754 635 Policy related expenses 616 457 Other expenses 168 176 Profit after Tax (30) 2* Quarter ended Jun 26 Quarter ended Jun 25 *Quarter ended Jun 25 PAT includes one-off treasury gains of INR 49 Cr INR Cr
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Governance & Corporate Responsibility 39
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7 Member Board with 4 Independent Directors Mr. Rajiv Jalota Independent Director Ex-IAS officer with over 35 years of experience Served as Chairman, Mumbai Port Authority (as Secretary to Government of India) and Indian Ports Association Served as Additional Chief Secretary (Finance), Maharashtra and as GST Commissioner, Maharashtra Mr. Balagopal Chandrasekhar Independent Director Ex-IAS officer and former Chairman of Federal Bank Limited Founded Penpol Pvt. Ltd., currently one of the largest hi-tech bio-medical devices manufacturers Serves as Member of the Governing Council of the Centre for Management Development, Trivandrum Dr. Ashima Goyal Independent Director Professor at Indira Gandhi Institute of Development Research Specialist in open economy macroeconomics, international finance, institutional and development economics Served as a Part-time member of Economic Advisory Council to the Prime Minister Served as Member of Monetary Policy Committee, RBI Mr. Shiva Kumar Independent Director Served as Deputy Managing Director at State Bank of India Former Managing Director of State Bank of Bikaner & Jaipur (now merged with the State Bank of India) Served as representative of Associate Banks on the Managing Committee of Indian Banks’ Association Received the ‘Business Leadership Award’ from the Institute of Public Enterprises 40
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Our contribution to building a more sustainable tomorrow 65 Districts across 15 States 26 NGO Partners 26 Active Grants EdelGive Foundation’s commitment to investing in communities t2.2 Cr children impacted 1,26,514 schools reached 7.6 lakh teachers trained Quality Education t2.65 lakh Individuals trained 14,887 watershed structures repaired/built Community Resilience and Climate Action t2.87 lakh women supported 43,351 grassroots leaders 21,312 survivors rehabilitated Women Empowerment • INR 13.50 Cr cashflow from Edelweiss CSR contribution in quarter ended Jun 26 • Since inception, mobilized INR 1,648 Cr through commitments, partnered with 324 high caliber NGOs and spearheaded over 150 capacity building projects • Enabled an increase of average 211% in the annual budgets of NGO supported by EdelGive in last 10 years till FY25 41 As on Jun 26 Impact metrics since inception up to quarter ended Mar 26
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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 (“Edelweiss”). Actual results may vary from the forward-looking statements contained in this presentation due to various risks and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India and outside India, volatility in interest rates and in the securities market, new regulations and Government policies that may impact the businesses of Edelweiss as well as its ability to implement its strategy. The information contained herein is as of the date referenced and Edelweiss does not undertake any obligation to update these statements. Edelweiss has obtained all market data and other information from sources believed to be reliable or are its internal estimates unless otherwise stated, although its accuracy or completeness can not be guaranteed. Some part of the presentation relating to business wise financial performance, balance sheet, AUM of Edelweiss and industry data herein is reclassified/regrouped based on Management estimates and may not directly correspond to published data. The numbers have also been rounded off in the interest of easier understanding and readability. Numbers have been re-casted wherever required. Prior period figures have been regrouped/reclassified wherever necessary. All information in this presentation has been prepared solely by the company and has not been independently verified by anyone else. This presentation is for information purposes only and does not constitute an offer or recommendation to buy or sell any securities of Edelweiss. This presentation also does not constitute an offer or recommendation to buy or sell any financial products offered by Edelweiss. Any action taken by you on the basis of the information contained herein is your responsibility alone and Edelweiss or its directors or employees will not be liable in any manner for the consequences of such action taken by you. Edelweiss and/or its directors and/or its employees may have interests or positions, financial or otherwise, in the securities mentioned in this presentation. Edelweiss Financial Services Limited Corporate Identity Number: L99999MH1995PLC094641 For more information, please visit www.edelweissfin.com 42
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Safe Harbour Net worth figures include MI. BVPS is calculated on net worth post MI. Business PAT figures are presented pre MI unless stated otherwise. Slide 4,7,14: Debt excludes CBLO and securitisation liabilities. Net debt is gross debt minus high quality liquid assets. Slide 7,11: Customer reach includes MF folios, individuals covered under Group Insurance policies for LI and customers serviced since inception for GI. Slide 15,16: Numbers are based on management estimates. 3 years+ liabilities exclude Equity; Assets and Liabilities do not include Insurance businesses. Slide 10,20,30,31,33,34: NBFC and HFC AUM includes gross loan book, SR investments and assigned book. Slide 10,37: LI AUM includes Shareholders and all Policyholders fund and is calculated in accordance with IGAAP. Slide 30,31: NBFC AUM, gross loan book, GNPA, NNPA and financials for quarter ended Jun 25 have been restated on account of merger between ECLF and ERFL. 43