almondz global securities ltd. meet/131400_20080514.pdf · (former executive director, reserve bank...

ALMONDZ GLOBAL SECURITIES LTD.

Earnings Update – Q4 FY08Unaudited Results

Analyst Meet14th May 2008

www.almondzglobal.com

2

Presentation Structure

3. Businesslines Snapshot

2. Financials

1. Overview of Almondz

Overview of Almondz

4

Almondz Group Companies

Investment Bank

Corporate Finance & Advisory

Portfolio Management Services

Distribution of third-party financial products

Equity Broking

Incorporated in 1994 LISTED

Almondz Global Securities Limited

Memberships of the Multi Commodity Exchange of India Ltd. (MCX) and the National Commodity & Derivatives Exchange (NCDEX)

Incorporated in 2006

UNLISTED

Almondz Commodities Pvt.

Ltd.

Registered with IRDA as Insurance broker

Risk Management

Insurance Broking

Employee Benefits Consulting

Claims Management

Incorporated in 2003UNLISTED

AlmondzInsurance

Brokers Pvt. Ltd.

Alternative / Reinsurance Placement of large facultative risks

Placement & Management of insurance treaties for domestic insurers


UNLISTED

Almondz Reinsurance

Brokers Pvt. Ltd.

Promoter Company of Almondz Group

Applied to RBI for NBFC license


LISTED

Almondz Capital &Management Services Ltd.

5

Almondz Group Holding Structure

Almondz Capital and Management Services (ACMS)• Promoter Company

• Listed• Number of employees : 4

Business Verticals: None

Almondz Global Securities Limited• Listed• Number of Employees: 646• Business Verticals:

1. Corporate Finance: 1. Debt Syndication and Infrastructure Advisory 2. Debt Capital Markets3. Private Equity and M&A4. Equity offerings

2. Secondary Debt Market Operations3. Distribution of Financial Products4. Retail Equity Broking5. Institutional Equity Broking6. Portfolio Management Services

Almondz Insurance Brokers Pvt. Ltd.Non-ListedEmployees: 33Business Verticals:

1. Insurance Broking

Almondz Reinsurance Brokers Pvt. Ltd. Closely HeldEmployees: 6Business Verticals:

1. Reinsurance Broking

Holds 47% Shareholding

Proposed to hold 51% Shareholding

Almondz Commodities Pvt. Ltd.Closely HeldEmployees: 20Business Verticals:

1. Commodities Broking

Holds 100% Shareholding

Hold 100% Shareholding

6

Business Verticals- Almondz

Corporate FinanceDebt Portfolio Management

Investment Banking•Private Equity•M&A

Investment Banking •Equity Offerings

Infrastructure Advisory and Loan Syndication

Investment Banking •Debt Capital Markets

Institutional Distribution• Distribution of other Financial

products• Distribution of Debt paper

Retail Equity

Broking

Private Clients

Equity Broking Distribution of Financial Products

Institutional Equity

Broking

Retail Distribution

colour denotes Revenue Segments in P& L a/c colour denotes Business Verticals

7

Business Line Employee Strength

538

Support Line Employee Strength

171

Almondz Group Employee Strength

As on 31 Mar 2008

8

Business Line Employee Strength

Distribution of Financial Products, 175, 33%Equity Broking, 272, 50%

Insurance Broking, 13, 2%

Corporate Finance- Investment Banking

(Equity), 28, 5%

Corporate Finance- Debt Capital Markets, 10, 2%

Secondary Debt Market Operations, 18, 3%

Corporate Finance-Infrastructure Advisory and Debt Syndication, 5,

1%Re-Insurance Broking, 3,

1%

Commodities Broking, 14, 3%

9

Board of Directors

Atul Kumar Shukla, Chairman(Former Chairman, Life Insurance Corporation of India)

K. L. Khetrapaul, Director (Former Executive Director, Reserve Bank of India)

Amar Singh Anand, Director (CEO, Advanet International, prior experience Vice President, Corporate M&A and strategy, Citigroup New York, Business Analyst Mckinsey & Company)

S. R. Bansal, Director(Lawyer, Member of Institute of Internal Auditors, USA and Member of Association of Certified Fraud Examiners, USA)

Qais M. Al-Yousef, Director(CEO, Al-Yousef Group LLC, Muscat, Sultanate of Oman)

Krishna Kumar Gupta, Director(CEO, Al Anwar Holdings SAOG, Sultanate of Oman)

Jagdeep Singh, Director(Whole-time Director)

Navjeet S. Sobti, Executive Vice-Chairman(Promoter Director)

Vinay Mehta, Managing Director & CEO(Former Executive Vice President and Head- Treasury, Group Head – Risk with Centurion Bank of Punjab Limited)

10

Shareholding pattern

Mutual Funds/UTI0.02%

Bodies Corporate 7.58%

HUF0.11%

NRI2.35%

Foreign Institutional

Investors1.36%

Promoter and Promoter Group

47.01%

Clearing Members0.08%

Foreign Body Corporate

12.21%

Individuals - 29.29%

11

Locations

• Pan-India presence: 21 fully functional offices spread across the country

• 3 franchise offices

• Presence in all the major metros

33, Vaswani Mansion, 6th Floor,Dinsha Vachha Road, Opposite K. C. College, Churchgate, Mumbai 400020, Maharashtra, India

Tel: +91 22 32959073, 22870580 Fax: +91 22 22870581 Email: [email protected]

Corporate Office : MUMBAI

3 Scindia House, 2nd Floor, Janpath,New Delhi 110001, India

Tel: +91 11 41514666 - 69Fax: +91 11 41514665Email: [email protected]

Head Office : DELHI

Financials

13

Important Events & Performance highlights

Almondz Capital Markets Pvt. Ltd. (Equity Broking company) merged with Almondz Global Securities Ltd. (AGSL) on 31st March 2008.Entered into a JV (non-equity alliance) with the Noble Group, a UK based Investment Bank. The JV runs an FII desk, sources international capital for AGSL clients, and plans to enter Fund Management.Oman based Al Anwar Holdings SAOG, takes a 14.99% stake in AGSL @ INR 85 per share.Launched first PMS initiative (Compounding Growth Portfolio) with UK based Commander group acting as Advisors.

98%

Revenue69%

PBT87%

PAT

14

Financials: snapshot

128%

134%

224%

182%

136%

Growth rate (%)

0.95

0.95

15.23

20.64

120.12

Q4 07

2.17

2.23

49.43

58.16

283.53

Q4 08

31%3.504.60EPS –Diluted

28%3.684.71EPS –Basic

87%55.92104.68PAT(INR/mln)

69%91.13153.86PBT (INR/mln)

98%450.58890.64Revenue(INR/mln)

Growth rate (%)

FY 07FY 08Particulars

RevenuePBT

PAT

450.58

890.64

91.13153.86

55.92

104.68

0

100

200

300

400

500

600

700

800

900

Performance over Last year

2006-07 2007-08

15

Segment Revenues

NA-(42.00)NA-(16.45)Segment PBIT- Equity Broking

69%91.13153.86182%20.6458.16PBT

46.8787.4818.8728.53Less: Unallocable Expenses & Interest net of Unallocable income

75%138.00241.34119%39.5086.69Segment PBIT

68%26.5244.46-56%16.047.01Segment PBIT-Distribution of Financial products

119%76.93168.1299%22.6045.09Segment PBIT-Corporate Finance

105%34.5570.765801%0.8651.04Segment PBIT-Debt Market Ops

134%

NA29%

124%

452%

Growth rate (%)

116.81

-67.00

34.37

15.44

Q407

273.31

24.94 86.26

76.83

85.28

Q408

98%437.72867.83Income from Operations

NA-89.01 Equity Broking Revenue58%213.48336.79Distribution of Financial products

109%140.38293.98Corporate Finance

77%83.86148.05Debt Market Operations

Growth rate (%)FY 07FY 08Particulars (INR/Mln)

16

Equity Broking10%

Corporate Finance34%

Debt Market Operations17%

Distrinution39%

Revenue Composition & Segment PBIT (FY 08)

Distribution16%

Equity Broking0%

Corporate Finance59%

Debt Market Operations25%

Segment PBIT Revenue composition Note: Equity Broking generated a Loss hence not considered as a part of the profitability chart

17

Advisory Fees6%

Equity64%

Debt 24%

Private Equity6%

Market Exposure

Debt44%

Equity 16%

Advisory Fee26%

Private Equity14%

PBITRevenue

18

Financials: pre- and post-merger

126.228.3231.434.60 EPS (Diluted)

133.218.58 28.134.71 EPS (Basic)

168.69150.24 87.21104.68 PAT (INR/Mln)

114.92195.87 68.83153.86PBT (INR/Mln)

76.56795.56 97.67890.64 Total Revenue (INR/Mln)

YoY (%)Pre-MergerYoY (%)Merged Entity

Year ended 31st March 2008Particulars

19

Pricing and valuation details

Equity Share Capital: INR 151.93 Mln (FV: INR 6)

Net worth as on 31st March 08 : INR 860.50 Mln

RoE : 19% (on Average Networth) and 41% (on Opening Networth)

BV : INR 33.98

EPS (weighted): INR 4.71

Share price as on 9th May 2008 : INR 55.85

P/E : 11.85

Market Capitalization : INR 1414.22 Mln

Business Lines Snapshot

21

Corporate Finance: Private Equity

29093.34100.51Revenue (INR/Mln)

Growth rate (%)FY 07FY 08Particulars

The Private Equity and M&A Advisory commenced functioning in FY 07.During FY 08, it executed 2 transactions in PE aggregating INR 5.00 Bln in value.It also acted as Advisors to JC Flowers & Co. LLC for the acquisition of a 36.58% stake in SICOM for an amount of INR 3.50 Bln.We are looking at a pipeline of proposals in the areas of Healthcare, Infrastructure, Retail, Logistics and FMCG.

22

Private Equity and M&A (Contd…)

3500M&A Advisory Financial Services

JC Flowers & Co. LLC

4600PE Sell SideHealthcareGlobal Hospitals

400PE Sell Side HeathcareRG Stone Urological Research Institute

Capital raised (INR/Mn)

Type SectorTransactions

23

Corporate Finance: Debt Capital Markets

140. 7441.01Revenue (INR/Mln)


Associated with 32 transactions aggregating in value INR 110 Bln.

Raised 20 year DDB for a State Government Infrastructure Board aggregating INR 5.00 Bln

Nearly INR 50 Bln in the Debt raising assignments currently under execution in the Power sector from both domestic and international sources.

Ranked among top 10 merchant bankers for raising Debt for Government Sector Companies

Ranked number 1 in raising Debt for State Level Undertaking

11 Professionals

24

Debt Capital Market

2,000Term Loan syndication

PowerGSPC Pipavav Power Company Ltd

9,470Term Loan syndication

PowerGujarat State Electricity Corp. Ltd

4,000Placement of Bonds BankBank of India

5,750Placement of Bonds BankUnited Bank of India

5,000Placement of Bonds BankPunjab National Bank

2,350Placement of Bonds BankICICI Bank Ltd.

9,325Placement of Bonds AgricultureNational Bank of Agri & Rural Dev.

2,000Placement of Bonds InfrastructureNational Capital Region Planning Board

6,500Placement of DDBsInfrastructurePunjab Infrastructure Dev. Board

Power

Power

Power

Sector

3,000Placement of Bonds Tamil Nadu Electricity Board

18,821Placement of Bonds Rural Electrification Corporation Ltd

Placement of Bonds

Type

Power Finance Corporation Ltd

Selected Transactions

21,817

Capital raised (INR/Mln)

25

Corporate Finance: Merchant Banking

Merchant banking group provides Issue management, takeover, buy-back, de-listing and other services to our clients.

Lead managed 7 issues for an aggregate amount of INR 12.02 Bln.

20 professionals

Ranked 9th by PRIME in terms of no. of issues handled during FY 08



26

Distribution of Financial Products

58213.48336.79 Revenue (INR/Mln)


Countrywide network of 21 branches and opening 3 more branches in Q1 FY 09.

Feet-on-street 150, to be ramped to 250 in FY 09

Range of products and services: MFs, PMSs, Fixed Income Products, Insurance ULIPs, and Equity Offerings.

More than 2500 channel sales partner all over India

AUM of INR 15 Bln as on 31st March 2008 with Equity MF Schemes constituting about 60% of this share; Equity MF market share at 0.50%.

Revenue Composition: 85% from MFs, 12% from IPOs and 3% from others.

In FY 09, Insurance products expected to contribute 15% to topline.

27

Proprietory Debt Portfolio Operations



AGSL has over 7 years experience in Trading in Fixed Income SecuritiesBook size can be ramped to INR 800 MlnIncisive reach across all the major client segments – Provident Funds, Insurance Cos., Mutual Funds, Corporate Treasuries, Bank Treasuries, Trusts etc.

28

Equity Broking

NA-89.01Revenue (INR/Mln)


Active operations from H2 of FY 08

Fresh Capital infused in Q4 FY 08

225 feet-on-street across 11 locations and 14 branches

9,000 retail accounts; expected to add 30,000 accounts during FY 09

139 trading terminals

Technology (FT platform - offline, Asian CERC - online).

Outlook :

Margin FundingFranchisee ModelHUB based online trading

29

Disclaimer

This report is for information purposes only and does not construe to be any investment, legal or taxation advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any action taken by you on the basis of the information contained herein is your responsibility alone and AGSL or its employees or directors, associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in checking the correctness and authenticity of the information contained herein, but do not represent that it is accurate or complete. AGSL or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this publication. The recipient of this report should rely on their own investigations. AGSL and/or its directors, employees or associates may have interests or positions, financial or otherwise in the securities mentioned in this report.

almondz global securities ltd. meet/131400_20080514.pdf · (former executive director, reserve bank...

Documents