SMC Global Securities Limited has informed the Exchange about Investor Presentation on 1st October 2022.
Osmec
Moneywise. Be wise.
SMC GLOBAL SECURITIES LIMITED
Member: NSE + BSE « MSE * NCDEX « ICEX * MCX
Clearing & Trading Member : Cash, F&O, Currency, Debt & Commodity
SEBI Regn. No, : INZ 000199438 « Research Analyst No. : INH100001849 - Investment Adviser No. : INA100012491
Regd. Office : 11/6B, Shanti Chamber, Pusa Road, New Delhi-110005 Ph : +91-11-30111000, 40753333 Fax : +91-11-25754365 + CIN No. : L74899DL1994PLC063609 E-mail : smc@smcindiaonline.com Website : www.smcindiaonline.com
Date: October 01, 2022
Listing Operations
BSE Limited, P J Towers, Dalal Street, Mumbai -400001, India
Listing Department National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra, (E) Mumbai - 400051
Scrip Code: 543263
Symbol: SMCGLOBAL
Sub: Investor Presentation-October 2022
Dear Sir(s),
In compliance with Regulation 30(2) of SEBI (Listing Obligations and Disclosure Requirements) a copy of the investor Regulations, 2015 read with Part A (15) of Schedule III, enclosed is Presentation - October 2022.
You are requested to kindly take note of the same.
Thanking you,
For SMC Global Securities Limited
Suman Kumar E.V.P. (Corporate Affairs), Company Secretary & Compliance Officer (Membership No. F5824)
MUMBAI OFFICE
: AWing, 401/402, Lotus Corporate Park, Graham Firth Steel Compound, Off Western Express Highway, Jay Coach Signal, Goregaon East
Mumbai-400063 Ph : +91-22-67341600, 66481818 Fax : +91-22-67341697 E-mail : smcmumbai@smcindiaonline.com
KOLKATA OFFICE:
18, Rabindra Sarani, Poddar Court, Gate No. 4, 5th Floor, Kolkata - 700001 Ph : +91-33-66127000 Fax : +91-33-66127004 E-mail : smckolkata@smcindiaonline.com
i “
EXFOWTRING INVESTORS A SEBI Initiative
INVESTOR PRESENTATION
October 2022
SMC at a Glance
Branches Across India 112 Including 1 in Dubai
Cities Covered 447
Employees 3,486
Sub-brokers / Authorised Persons 2,440
Network of Financial Distributors 13,667
Client Demat A/Cs 830,877
Clearing & Settlement trading members 308
Cumulative AUM/AUA under Mutual Funds/PMS INR 28.09 Bn
Running SIPs 65,643
Insurance Policies sold 196,502
Insurance Premium INR 5,918 Mn
NBFC AUM INR 7,163 Mn
Ratings: Short Term- CARE A1+ & ICRA A1+ Long Term- ICRA A (STABLE)
* All numbers as of Q1-FY23
Investor Presentation
Consolidated Net worth
INR 9,223 Mn
5 Year Revenue CAGR 16.23%
5 Year PAT CAGR 31.15%
Net D/E 0.31x
2
SMC Group Overview
•
SMC Global Securities Ltd was established in 1994 by founders Mr. Subhash C. Aggarwal and Mr. Mahesh C. Gupta.
• Over the years, the company has grown into a diversified financial services company offering brokerage services, investment banking, wealth management, insurance broking, clearing & distribution of depository services, financial advisory services to corporates, institutions, high net worth individuals and other retail clients.
financing, fixed income securities,
financial products,
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The company has launched various innovative digital capabilities and best-in-class products and services.
technology-enabled
Through a strong network of approx. 2,440 Sub Brokers and Authorized Persons the company’s footprint spreads over 447 cities across India.
The company is governed by strong board including 6 independent directors and is run by a highly qualified and experienced management team.
SMC has had a consistent growth track record and is well placed to garner a piece of the ever-growing capital markets in India.
The company’s vision is to be a global organization having a dominant position in financial & investment services through customer centric approach.
Consolidated Revenue (INR Mn) & EBITDA (%)
9,013
21.67%
7,785
15.24%
11,169
26.42%
24.41%
2,905
FY20
FY21
FY22
Q1-FY23
Q1-FY23 Revenue Pie (%)
11%
24%
65%
Broking, Distribution & Trading
Insurance
NBFC
Investor Presentation
3
Business Structure
SMC Global Securities Ltd.
Insurance Broking
Broking, Distribution & Trading
Financing
Life Insurance
General Insurance
Equity, Commodity, Currency & Institutional Broking
Discount Broking
Clearing Services
SME – Loan Against Property (LAP)
SME – Working Capital Term Loan (WCTL)
Financial Products Distribution
Proprietary Trading
Fixed Income
Consumer Durable Loans
Capital Market Funding (CMF)
Wealth Management
Portfolio Management
Investment Banking
Onward Lending
Asset Finance
Investor Presentation
Real Estate / Mortgage Advisory
Research Services
Gold Loans
4
Board of Directors
Mr. Subhash C. Aggarwal Chairman & Managing Director, SMC Group He is the promoter and co-founder of SMC Group and an active contributor to the good governance. He is a fellow member of the Institute of Chartered Accountants of India (ICAI).
Mr. Ajay Garg Director & CEO – SMC Global Securities Ltd. MD-SMC Global IFSC Pvt. Ltd. Director - SMC Insurance Brokers Pvt. Ltd., Moneywise Financial Services Pvt. Ltd. He is a Fellow Member and rank holder of ICAI. With a wide and rich experience of over 23 years in Securities market, he heads the core businesses of Broking & Clearing services at SMC.
Mr. Himanshu Gupta Director & CEO-Moneywise Financial Services Private Ltd. Director-SMC Global Securities Ltd., Director-SMC Comtrade Ltd. He is a Fellow Member of the Institute of Chartered Accountants of India (ICAI) having a rich experience of around 11 years in Financing & Securities market along with a strong hold into the intricacies of the capital market.
Mr. Kundan M. Agarwal Independent & Non-executive Director He serves as Independent and Non-Executive Director of SMC Global. He is a fellow member of Institute of Chartered Accountants of India (ICAI) and has experience and professional expertise of more than four decades in financial services industry.
Dr. Madhu Vij Independent & Non-executive Director She holds a Master degree in Commerce and a doctorate degree. She has an experience and exposure of over three decades as a Professor of Finance at the Faculty of Management Studies, University of Delhi.
Mr. Naveen ND Gupta Independent & Non-executive Director He has been a chartered accountant for more than 22 years and is widely known for his role in making the income disclosure Scheme, 2016 a success. He is the former president of ICAI and Director in various companies.
Investor Presentation
Mr. Mahesh C. Gupta Vice Chairman & Managing Director, SMC Group, Director-SMC Insurance Brokers Pvt. Ltd. He is the promoter and co-founder of SMC Group and has been associated with the Company as the backbone since its inception which makes him a pivotal pillar of SMC. He is a fellow member of the Institute of Chartered Accountants of India (ICAI). Mr. Anurag Bansal Whole Time Director-SMC Global Securities Ltd. Director-SMC Capitals Ltd., Director-SMC Global IFSC Pvt. Ltd. He is a rank holder and fellow member of the Institute of Chartered Accountants of India (ICAI) with a wide and rich experience of over 23 years in financial markets. He is also a member of Institute of Cost Accountants of India (ICMAI). Ms. Shruti Aggarwal Non-executive Director She serves as a Non- Executive director for SMC Global Securities Ltd. and is currently leading the Corporate Finance function at SMC Investments & Advisors Ltd. She is an MBA from London Business School, a member of (ICAI) and has cleared all three levels of CFA from the CFA Institute, USA.
Mr. Hari D. Khunteta Independent & Non-executive Director He is a fellow member of ICAI and is a commerce graduate from University of Rajasthan with experience of over 45 years in the field of financial management, Investor services, Corporate Governance & Resource mobilization from Domestic as well as International market.
Mr. Chandra Wadhwa Independent & Non-executive Director He is the fellow member ICMAI & ICSI. He holds Bachelors of Law as well M. Com Degree from Delhi University and has exposure of over 39 Years in the field of Financial cost management accounting as well as in cost management auditing sector.
Ms. Anshika Aggarwal Director- SMC Investment and Advisors Ltd. A qualified Chartered Accountant, holding a B.Com (Hons.) degree from Delhi University, she is also a member of Young Business Leaders Forum – PHD CCI. She carries with her entrepreneurial experience, running a fashion social commerce startup, Modestreet Fashion as Co-Promoter and Director for 1 year. Prior to which, she was with Ernst & Young for nearly 4 years in business tax and regulatory consultancy..
5
Group Company Chairman/ Directors & Key Management Personnel
Dr. D. K. Aggarwal CMD-SMC Investments and Advisors Ltd. CMD-SMC Capitals Ltd. Chairman & Director-SMC Real Estate Advisors Private Ltd. Chairman & Director-SMC Comtrade Ltd. He is the Fellow Member of The Institute of Chartered Accountants of India (ICAI) with over two decades of experience in the securities market & financial services. Mr. Pranay Agarwal Director & CEO - Moneywise Finvest Ltd. Director - Moneywise Financial Services Pvt. Ltd. He is a qualified Chartered Accountant from the Institute of Chartered Accountants of India (ICAI) and a commerce graduate from the University of Delhi. He is playing a leading role in StoxKart (Discount brokerage platform).
Ms. Reema Garg Chief Human Resource Officer, Director-SMC Investments and Advisors Ltd. Director-Moneywise Finvest Ltd. She holds B.Sc. Applications (MCA) and pursuing PHD in HR.
(Computer Science)
from University of Delhi and Masters in Computer
Ms. Nidhi Bansal Director – SMC Comtrade Ltd. She is a post graduate in commerce and a fellow member of Institute of Chartered Accountants of India (ICAI).
Mr. Vinod Kumar Jamar President & Group CFO He is responsible for managing financial reporting, audit, compliance of tax laws (direct and indirect), planning and capital structure. He is also a fellow member of Institute of Chartered Accountants of India (ICAI).
Mr. Suman Kumar E.V.P - Corporate Affairs & Company Secretary He leads the Corporate Affairs & legal matters of the SMC Group. He serves as the Executive Vice President (Corporate affairs) & Company Secretary of the SMC Group. He is fellow member of ICSI & a law graduate from University of Delhi.
Mr. Pravin K. Agarwal Whole-Time Director- SMC Insurance Brokers Pvt. Ltd. He actively handles the development and operations of our insurance broking business. He is a man of alternative skills and solutions that has led to SMC’s substantial expansion and diversification. He has more than a decade of pivotal work experience in Insurance and Financial Industry.
Mr. Ayush Agarwal Director - SMC Real Estate Advisors Private Ltd. Director - Moneywise Finvest Ltd. CIO - SMC Private wealth He is an MBA (PGP-FMB) from SP Jain Institute of Management and Research, Mumbai, and a graduate from University of Delhi. He is the Chief Investment Officer of SMC Private wealth Vertical at SMC Global Securities Ltd. managing and handling portfolio management activities.
Ms. Akanksha Gupta Whole Time Director - SMC Insurance Brokers Pvt. Ltd. She is a member of the ICAI Institute and is also a Chartered Financial Analyst (CFA). She is an experienced and confident lady who inspires everyone with her innovative ideas, conviction and new perspectives. Her ability to see the matters of the company and unfailingly rise to meet the challenges boosts the effectiveness of the group.
Mr. Rajendra P Mahipal Independent & Non - executive Director - SMC Insurance Brokers Pvt. Ltd. He holds M. Com degree from Rajasthan University and is also a fellow member of the Institute of Chartered Accountants of India. He is a promoter and director of Pink city Electronics Pvt. Ltd. and has over 41 years of experience in import Export, Finance, Administration and Capital Market.
Ms. Shweta Aggarwal Director – SMC Capitals Ltd. She is a member of the ICAI and has also cleared all levels of Chartered Financial Analyst (CFA) Program from U.S.A. She is responsible for the formation of the business, and spearheads the growth plans and business strategy of the investment banking division.
Investor Presentation
6
Key Milestones
SMC Global took membership of NSE and started broking business
Distribution of Financial Products, Research Services, Membership of DGCX in Dubai
NRI Business Institutional Desk
Received BSE membership as SAM Global Securities amalgamated into SMC Global Securities
Real Estate Advisory Fixed Income Broking Mortgage and Loan Advisory
Point of Sale Persons (POS) – Approved by IRDAI
Listed on NSE and BSE, Launched SMC Gold Coins
1995
2005
2007
2009
2014
2017
2021
2003
2006
2008
2010
2016
2019
2022
Commodity Broking launched
Insurance Broking
Wealth Management Investment Banking Online Trading Currency Broking Financing Business (NBFC)
Corporate Hedging Desk
Trading cum clearing member of India INX & NSE- IFSC, GIFT City, Gujarat
Discount Broking - StoxKart
Became Clearing and Trading Member of India International Bullion Exchange IFSC and also incorporated Category III (AIF)
Investor Presentation
7
Geographical Reach
Jammu
Punjab
SMC Branch Offices 112 Branches in India including Dubai 447 Cities covered across India 2,440 Sub Brokers/ Authorised Persons
Jalandhar Ludhiana Bhathinda
Amritsar
Mandi Shimla Chandigarh Patiala
Haryana
Panipat
Delhi Faridabad
Dehradun
Sambalpur Meerut
Rajashthan
Gurgaon Noida
Agra
Jaipur
Kanpur
Bhopal
Lucknow
Guwahati
Sultanpur Gorakhpur Malda
Patna
Siliguri
Alipurduar
Agartala
Durgapur Ranchi Jamshedpur
Dhanbad
Kolkata Kolkata 1
Howrah
Nagpur
Raipur
Bhilai
Sambalpur
Bhubaneswar
Brahmanpur
Secunderabad
Hyderabad
Visakhapatnam
Dubai
Ahmedabad
Vadodara Rajkot
Surat
Maharashtra Mumbai
Pune
Indore
Akola
Ahmednagar
Nashik
Aurangabad
Vijaywada
Chennai
Bengaluru
Coimbatore Kochi
Corporate Office Broking Insurance Real Estate Wealth Overseas Financing
8
Investor Presentation
Awards & Accolades
2022 Best Learning Team of the Year
2022 Significant Contribution To The Commodities Market
2019 Fastest Growing MFI North in Best Star MF Online- BSE
2018 “Regional Retail Member of the Year (North)”
2021 KRISHI Award for developing Retail Segment Participation
2018 Best Fastest Growing Commercial NBFC
2019 Business Excellence Award (Order of Merit)
2018 Best Financial Service Provider
2019 Broking House Non-Agricultural Commodities of The Year
2017 Best Online Trading Services Broker
2019 Premier Depository Participant in Gold Category
2017 Best Broker with In-House Research In Bullion Industry
2017 Krishi Pragati Award, 2017
2017 Commodity Broker of the Year
2017 Best Performing Retail Broker of Northern Region
2016 Order of Merit- Achieving Market Leadership
2016 NBFC of the year (Northern region)
2015 Property Consultant of the Year - Residential
2015 Corporate Broker of the Year - National
2015 Best Financial Service Provider
2015 Best Real Estate Broker of the year
2014 Best Commodity Broking House
2014 Best Merchant Banker – Capital Restructuring services
2014 Best Market Analyst Award in Commodity Fundamentals
Investor Presentation
9
Key Strengths
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Over 25 Years of Management experience in industry
• Well established and deeply penetrated national brand with strong reputation and good recall
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Group has extensive corporate relationships
An ever-growing database of corporate and retail clients
Innovative use of digital technology-enabled capabilities, best-in-class products and services
Strong network of approx. 2,440 Authorized persons and Sub-brokers, with a footprint covering over 447 cities across India
• Wide range of financial products under one roof
•
SMC has earned trust that cements “One Transaction Lifetime Relationship,” the belief that centers on managing, growing and protecting the investment of our clients for generations
Investor Presentation
10
Broking, Distribution & Trading
11
Broking, Distribution & Trading
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Broking business comprises of brokerage in dealing in equities, commodities, currency derivatives and other securities on behalf of customers, clearing services across all major stock exchanges and depository services.
Distribution business encompasses distributing third-party financial products like Mutual Funds, IPOs, FPOs, Corporate FD’s and Bonds and various other capital market products.
This segment also covers wealth and portfolio management services along with providing investment banking services and advisory in real estate and mortgage / loan advisory.
The company also houses proprietary arbitrage trading through a new generation algorithmic trading/HFT.
Procurement and placements of debt instruments like G-Secs for various corporate clients is carried out under the fixed income desk.
SMC has banking tie ups with leading institutions like Punjab National Bank, Union Bank of India, Indian Overseas Bank, Karur Vysya Bank, Dhanlaxmi Bank as execution partners for broking services.
Increasing Online Penetration
69%
50%
43%
46.28
Authorised Persons / Sub-Brokers
2,574
2,513
2,440
2,230
50%
57%
53.72
31%
FY20
Investor Presentation
FY21
Online
FY22 Offline
Q1-FY23
FY20
FY21
FY22
Q1-FY23
Segment Revenue* (INR Mn)
7,719
6,075
4,756
1,991
FY22
Q1-FY23
FY20
FY21
*includes other income
Q1-FY23 Revenue Pie (%)
40%
60%
Broking & Trading
Others
12
Broking
Equity, Commodity & Currency Broking:
• SMC is serving more than 6,88,500 clients under the broking segment.
• Equity segment under broking has been successful in generating a combined turnover of approx. INR 126.28 Tn* in Q1-FY23 as compared to a turnover of INR 328.41 Tn in FY22.
• Recorded our highest trading volume of INR 0.87 Tn* in commodity segment and INR 3.34 Tn* under currency segment for Q1-FY23.
• Total approx. market share of 1.90% in equity, 2.95% in commodity and 4.06% in currency markets.
Clearing Services:
• SMC is a leading name in clearing services whereby it provides clearing & Settlement services to over 300+ trading members across multiple stock exchanges.
• Member of NSE, BSE, India INX, NSE IFSC Exchange at GIFT City, MCX, NCDEX, ICEX & MSEI in India and DGCX (Dubai Gold & Commodity Exchange) in UAE.
• SMC is one of the few clearing service providers having a PAN – India reach.
Broking Clients (INR Thousands)**
Broking DP AUA (INR Bn)
673
689
602
544
495
481
Average Daily Turnover in Broking (INR Bn)
1,442
1,010
248
154
536
642
FY20
FY21
FY22
Q1-FY23
FY20
FY21
FY22
Q1-FY23
FY20
FY21
FY22
Q1-FY23
*Includes turnover from proprietary and clearing services from cash and derivative segments
**Represents SMC Global Securities’ clients only; exclusive of StoxKart clients. Investor Presentation
13
Discount Broking – StoxKart
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SMC has successfully launched a Discount broking platform in 2019 under the brand name StoxKart.
It’s a first-of-its-kind in the broking industry where customers are charged only for profitable transactions.
• Optimal usage of existing infrastructure is being leveraged to great cost savings targeting industry
competitive prices.
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StoxKart is one of the very few brokers to offer API based trading services which enables the clients to write their own software programs for professional trading.
StoxKart has added more than 128,773 clients till June 2022, and this has the potential to show exponential levels of growth. (StoxKart clients are unique from traditional broking clients)
Key Features:
Big Saving in Brokerage - INR 15 flat on intraday trade. Brokerage per executed order regardless of the trade size or time and that too only on the profitable trades.
Free Delivery Trades - Zero brokerage on delivery trades.
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StoxKart Clients
1,28,773
1,05,843
Advanced Charting Facility - Advanced and cutting-edge charting tools with 80+ technical indicators on real-time basis.
44,934
Advanced Trading Terminal - Seamless user-experience on mobile, browser & desktop trading platforms to help the customers trade on the move.
8,397
• Quick Trigger Alert - Get quick trigger alerts for price movements, pending orders, executed
orders etc.
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Real Time Support - A dedicated team of experienced professionals ready to offer any kind of assistance regarding customer queries.
FY20
FY21
FY22
Q1-FY23
Investor Presentation
14
Digital Ecosystem for Broking
Client Engagement • Developing
reports
in research HTML5 (Mobile Responsive Format). Creating Social like Media, Moneycontrol.com, Web banners, etc with an objective of adding value during prospect’s awareness.
campaigns using Investor websites
Innovative Trading Tools • Availability of next generation tools for trading such as SMC ACE, SMC Easy Invest, SMC Algotrader, SMC Autotrender, Algo and HFT Trading.
“We are Online” •
Zendesk – the messaging chatbot enables us to identify and segregate anonymous visitors into customers and prospective clients and to address their issue in realtime.
Quantitative Trading Desk(HFT) •
Specialize in automated trading strategies across multiple asset classes through cutting edge in-house trading platform
Digital Presence • Active social media presence on including platforms Twitter,
various Facebook, LinkedIn, Youtube and Quora.
Instagram,
Knowledge Sharing • Conducted 90+ webinars with having 250K+ speakers from leading institutions viz. NSE, BSE, MCX, NCDEX, etc.
attendees
and
Website Traffic (In Mn)
Application Installations
3.90
3.32
2,10,526
1,76,793
1.91
89,575
0.86
41,378
FY20
FY21
FY22
Q1-FY23
FY20
FY21
FY22
Q1-FY23
• Next generation
advance mobile trading platform ‘ SMC ACE’ • Provides Robo Advisory
to the clients
• Platform for online
trading through website and Mobile App
• Customized automated trading platform based on Algorithms
• Online App for investing in mutual funds, FDs and various other financial instruments
• An In house automated software which is totally unique to the system. • Our team of software professionals develop various technical and statistical strategies for trading.
• Advance mobile trading
•
app Single hand navigation to important functions • Advanced Charting tools • Multiple analysts research based recommendations
• Online KYC platform, a complete paperless & hassle free process
• A B2B mobile back
office
Investor Presentation
15
Distribution
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SMC offers distribution services of financial products including IPO’s, Mutual Funds, Company Fixed Deposits, Bonds, through its network of branches and channel partners across India.
SMC also provides retail financing through NBFC division in IPO's , FPO's & Bonds.
Pan-India network of 13,667+ independent financial distributors.
SMC is ranked amongst top 20 syndicators in most of the Debt & Equity Issuances in retail segment.
Distributing Mutual Fund schemes for all AMCs and has built a cumulative Asset under Management (AUM) of above INR 28.9 Bn+ with more than 65,643 active SIPs for clients.
Mutual Funds AUM (INR Bn)
30
33
28
25
Total Distributors
13,777
GOI Taxable Bonds Procurement (INR Mn)
18,110
FY20
FY21
FY22
Q1-FY23
Corporate FD Procurement (INR Bn)
56
13,676
13,674
13,667
4,890
3,243
15
13,750
33
36
FY20
FY21
FY22
Q1-FY23
FY20
FY21
FY22
Q1-FY23
FY20
FY21
FY22
Q1-FY23
Investor Presentation
16
Proprietary Trading & Fixed Income
High-Frequency Trading (HFT):
•
HFT is a method of trading that uses powerful computer programs to transact a large number of orders in fractions of a second. It uses complex algorithms to analyze multiple markets and execute orders based on market conditions.
• We have an in-house team of software professionals, developing various technical and statistical strategies.
Arbitrage/ Algorithm Trading:
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SMC deploys its surplus funds into generating income from proprietary arbitrager business.
• Under arbitrage we use Algo trading and high frequency trading infra to capitalize on the market in efficiencies in Equity/ Pro/ Commodities and
Currency segments of various exchanges.
• We are using state of the art hardware /software both outscored and in house and also low latency network for running our various arbitrage
strategies written by in house software team as well as outsource team vendors.
•
SMC also has very talented Quant team which makes number of alpha generating strategies to give market network absolute return .
Fixed Income:
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The fixed income desk executes the procurement and placements of a wide range of debt instruments.
Served more than 660 institutional and HNI clients in Q1-FY23.
SMC’s total turnover for Q1-FY23 stood at INR 10.86 Bn.
At this desk, SMC deals with Government securities (G-Sec), State Development Loans (SDLs), Debentures (PSUs, Corporates, NBFCs, Banks), Tax-Free Bonds, Money Market Instruments, Certificate of Deposits, Commercial Papers, Treasury Bills, Perpetual Bonds, Other Debt Market Instruments.
Serving a broadly diversified client profile consisting of State Electricity Boards, Private & PSU Corporate PFs, Gratuity Trusts, Schools / Universities / Education Institutes, Charitable Trusts, Banks/ Mutual Funds/ Insurance Companies, Debt Brokers, Corporate Treasuries, HNIs, etc.
Investor Presentation
17
Advisory
Wealth Management:
•
Total Clients served under wealth management clock over 10,772 with managed AUM/ AUA of INR 4,555 Mn.
• We have our direct sales branches/ regional offices at Delhi, Mumbai, Bangalore and
Pune.
Portfolio Management:
• Under our PMS desk, we focus on buying fundamentally sustainable growing businesses and outperform the benchmark indices by investing in equity and equity related instruments including mutual funds.
Investment Banking:
•
SMC Capitals Ltd. is a SEBI registered Category I Merchant Banker, having executed over 50 high profile deals including IPOs, debt issuances and other equity-based transactions.
Real Estate/Mortgage Advisory:
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Fully Integrated real-estate solution provider for end-users, investors & developers.
Supported by 1,252+ sub-brokers.
6,484 transactions done since 2015 valued at INR 35.24 Bn.
Tie-ups with leading developers like Godrej, Lodha, Shapoorji, TATA, Shobha, Hiranandani, Adani, etc.
• Mortgage Advisory- Tie-ups with leading banks for debt syndication of secured/
unsecured loans for retail and corporate borrowers.
Wealth AUM/AUA (INR Mn)
5,400
4,400
4,555
3,080
FY20
FY21
FY22
Q1-FY23
Marquee Investment Banking Deals
BSE Limited
Coromandel International Limited
IPO - BRLM
M&A Advisory
VRL Logistics
Private Equity Advisory
Muthoot Fincorp Limited Debt Public Issue – Lead Manager
L&T Infrastructure Finance Limited Long Term Infrastructure Bonds – Co Lead Manager
Shriram Transport Finance Company Limited Debt Public Issue – Lead Manager
Kosamattam Finance Limited
Debt Public Issue – Lead Manager
IDFC Limited Long Term Infrastructure Bonds – Co Lead Manager
Venus Pipes & Tubes Limited
IPO – Sole BRLM
Investor Presentation
18
Broking Industry Outlook
• Equity broking industry revenue to log 11-12% CAGR in next five fiscals driven
by a growth of 23-25% in turnover volumes as per ICRA.
Rising Penetration of Demat Accounts in India
• High investor awareness,
interest across market segments, easier and faster means to access the markets and continuing FII inflows will continue to boost these numbers.
increased retail
• Value added service offering becomes a key differentiator amid rising
competitive pressure and decreasing interest rates.
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Steady increase in trading activity can be seen with the trading volumes peaking every quarter.
Significant increase in retail participation is being witnessed in the industry where, the total number of Dematerialized accounts increased to INR 9.65 Cr. in June FY22.
• While growth momentum is expected to continue at medium pace, the traction
witnessed in FY22 is expected to stabilize in the coming years.
•
ICRA estimates the brokerage industry to clock a record broking income of INR 295-305 Bn at a growth rate of 7-8% from the previous financial year, in FY22. Growing retail share along with increasing interest and other fee income is expected to support profitability.
7.62%
6.50%
2.10%
2.40%
2.70%
4.10%
3.10%
FY17
FY18
FY19
FY20
FY21
FY22
Q1-FY23
Industry ADTO - Equity Retail (INR Tn)
6.8
6.2
2.9
3.2
3.6
2.0
FY16
FY17
FY18
FY19
FY20
FY21
Investor Presentation Source:- IBEF, business standard & https://www1.nseindia.com/products/content/equities/equities/historical_equity_businessgrowth.htm
19
Insurance Broking
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Insurance Broking
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SMC Insurance Brokers Pvt. Ltd. which is a Direct Insurance Broker registered with IRDAI (Insurance Regulatory and Development Authority of India) provides a complete array of services in Life Insurance and General Insurance Category including consulting, risk analysis, policy serving and claim settlement assistance.
SMC is one of the largest players in India in the General Insurance Retail Broking as well as for Life Insurance in India.
It provides these services through 5 branches across the country with more than 498 employees, 12,475+ Point of Sales (POSs) and 283+ Motor insurance Service Providers (MISPs) servicing a retail customer base of more than 800K a year.
Segment Revenue* (INR Mn.)
2,760
2,452
2,207
739
FY20
FY21
FY22
Q1-FY23
*Revenue recognition changed from net to gross basis from FY18.
No. of Policies (In Thousands)
The company operates independently of insurance companies, representing clients and rendering impartial advice to protect client’s interests.
739
802
676
Customers taking insurance through SMC benefit by lower premium and/or better quality of insurance cover, expert consultancy, practical pre-sale advice and efficient post-sale services.
197
FY20
FY21
FY22
Q1-FY23
Investor Presentation
21
Insurance Broking
General Insurance (GI)
Non-Life/ General Insurance contributes around 96.54% of the total revenues (FY22) of the Company.
• Within this segment, sales primarily happen through MISP (Motor Insurance Service Provider), POS (Point of Sales person), direct sales channel-foot on the street model.
•
•
SMC had 2.37% of Industry market share for Insurance Motor premiums as on 31st march, 2021.
The General Insurance business segment has following sub verticals under which policies are sold:
• MISP: Motor Insurance Service Provider
•
GI Retail: Personal Line Products offered i.e. Motor, Health, Travel, Home Insurance etc.
• GI Corporate: Marine insurance, Fire insurance etc. to corporate, institutional and
government bodies.
Life Insurance (LI)
This segment contributed around 3.46% of the total revenue (FY22) in insurance broking.
• We have a tie up with all the Life Insurance Companies for procuring business with an
overall range of 40 - 45 products to offer to our clients
• Our offerings include varied products viz Term Plans, Market Linked Investment Plans,
Endowment plans promising guaranteed returns for varied client requirements.
Market share as per GI Council of India as on Mar 2021
Investor Presentation
Insurance Gross Premium (INR Mn)
15,826
17,364
20,840
5,918
FY20
FY21
FY22
Q1-FY23
Revenue Pie (%)
3%
97%
General Insurance
Life Insurance
22
Insurance Broking - Scalable Business Model
Distribution
• Deep and wide national coverage • Strong presence in Tier-1 and Tier-2 cities • Leveraging SMC Global’s (Parent) franchisee network
Processes
• Best in industry quality processes • 100% verification of all leads to ensure no mis-selling • Emphasis on employee training and development • Complying to data confidentiality, regulatory complianceand IRDA guidelines
Technology Platform
• www.smcinsurance.com online portal has developed for catering to B2B and
B2C network.
• The portal has Artificial Intelligence features and is Multi Lingual • Average Monthly spend of INR 50 lakhs (approx.) on technology development
POS Model
• Point of Sale, an individual authorized by IRDA for sales/ servicing of
the
Insurance policies on behalf of the Company
• Post online training & certification the individual sources pre underwritten
Insurance policies (Motor, Travel, Personal accident & home insurance)
• MISP guidelines effective Nov 2017 have paved way for large business
opportunities through OEM dealers
• First broker in OEM insurance program to successfully launch entire insurance
MISP model
program compliant with MISP guidelines
• First online portal for MISP enrollment – training, examination and registration • First insurer evaluation for Automotive Insurance Program through online RFP
by insurers & dealer rating of insurers
Point Of Sales (POS)
11,100
12,000
12,475
8,000
FY20
FY21
FY22
Q1-FY23
Motor Insurance Service Providers (MISP)
350
370
282
283
FY20
FY21
FY22
Q1-FY23
Investor Presentation
23
Insurance Industry Outlook
• The insurance industry in India is expected to reach USD 280 Bn. Life insurance
industry in the country is expected to grow 5.3% annually from 2019 to 2023.
•
•
•
Insurance reach is still low in India. Overall insurance penetration (premiums as % of GDP) in India was 4.2% in FY21, providing a huge underserved market.
India’s insurance penetration was pegged at 4.2% in FY21, with life insurance penetration at 3.2% and non-life insurance penetration at 1.00
In terms of insurance density, India’s overall density stood at USD 78 Bn in FY21.
• Between April 2021 and January 2022, gross premiums written off by non-life insurers reached INR 227,188.89 Cr (USD 21.24 Bn), an increase of 6.94% over the same period in FY21. In January 2022, total premium earned by the non-life insurance segment stood at INR 21,957.03 Cr (USD 2.85 Bn), as compared to the INR 21,389.70 Cr (USD 2.77 Bn) recorded in January 2021.
•
In FY21, premium from new business of life insurance companies in India stood at USD 32.1 Bn. Motor insurance accounted for 34.1% of the non-life insurance premiums earned, followed by health insurance at 29.5%.
• The market share of private sector companies in the non-life insurance market rose
from 13.12% in FY03 to 55.8% in FY21.
• Higher personal disposable incomes would result in higher household savings that will be channeled into different financial savings instruments like insurance and pension policies.
Insurance Premium as a (% of GDP
0.80%
0.90%
1.00%
0.90%
0.90%
1.00%
2.70%
2.80%
2.70%
2.80%
3.30%
3.20%
FY17
FY18
FY19
FY20
FY21
FY22
Life
Non-Life
Insurance Premiums Per Capita (In USD)
11.5
43.2
13.2
46.5
18
55
19
55
19
58
FY16
FY17
FY18
Life
FY19 Non-Life
FY20
Investor Presentation
Source: IBEF, https://www.mordorintelligence.com/industry-reports/india-motor-insurance-market
24
Financing (NBFC)
25
Q1-FY23 NBFC Business in numbers
290+ Channel Partners 8 Branches
Employees 208
Number of Lenders 13
Collection Efficiency 98%
Net Worth INR 3,724 Mn
Loan AUM INR 7,163 Mn
Cumulative Loans Disbursed INR 17 Bn+
NNPA % 1.49%
ROTA % 4.87%
Revenue INR 325 Mn
Total Borrowings/Leverage Ratio INR 3,854 Mn / 1.0x
Secured Loans % 50.84%
Investor Presentation
OPEX-AUM 5.97%
Cost of Borrowing % / NIM % 9.13% / 14%
Credit Cost-ANR / PCR 0.42% / 43.13%
26 26
NBFC – Systemically Important (SI)
•
•
In the year 2008, SMC started providing financing services through its wholly owned subsidiary, Moneywise Financial Services Pvt. Ltd. (SMC Finance). SMC finance offers a wide bouquet of loan products i.e. SME-LAP (loan against property), SME- onward-lending (to NBFC/MFI), SME Assets (medical & other equipment), SME-WCTL and recently Gold loan disbursement has been started in Q1 FY-23 to meet the growing credit requirement.
• The NBFC, is currently focused on capital preservation, given its healthy capital adequacy, strong
liquidity position, diversified portfolio mix.
• The NBFC is in the process of scaling up its operations by opening new branches across
•
geographical regions. In order to achieve the above objective, NBFC is raising funds from Banks/ F.I. which will also result in optimizing average cost of borrowing.
LAP
WCTL
Asset Finance
Onward Lending
CMF
Retail DAs
Consumer Durables
Total
AUM (INR Mn)
Tenure (Months)
1,518
120
2,653
36
578
60
Avg. Ticket Size (INR Mn)
20.00
1.40
12.00
1,204
24
20.00
295
3
1.00
564
18
0.01
351
7,163
6
0.01
-
-
Return on Investment
13.5%
No. of Clients
* All numbers as of Q1-FY23 Investor Presentation
85
17.3%
1,928
13.0%
14.5%
18.0%
16.0%
18.0%
15.5%
49
68
3,446
14
53,498
59,088
Segment Revenue (INR Mn)
878
827
985
325
FY20
FY21
FY22
Q1-FY23
Q1-FY23 Lending Portfolio
8%
8%
21%
17%
4%
5%
37%
SME-Loan Against Property (LAP) Consumer Durable Loans Onward Lending Direct Assignment
SME-Working Capital Term Loan (WCTL) Capial Market Funding (CMF) SME-Asset Finance
27
Borrowing Mix Diversification
•
Increasing diversity in borrowing profile with borrowing from banks &
Diversified Borrowing Mix
financial institutions
• Continued plan to raise additional funds through diversified sources and
41%
49%
through varied instruments
• Cumulative Asset liability mismatch/surplus of INR 556.99 Mn in 30 days
bucket which is well under control as per RBI guidelines.
Lending Institutions
Investor Presentation
42%
13%
45%
11%
40%
36%
23%
FY19
FY20
FY21
44%
16% 7%
27%
FY22
49%
14%
17%
20%
Q1-FY23
NCD
Corporate Borrowing
NBFC & FI
Bank
Borrowing program supported by superior ratings
Rating Type
Rating
Rating Agency
Long term bank loans
CARE A- (stable)
Long term bank loans
ICRA A- (stable)
NCD
PP-MLD
CARE A- (stable)
ICRA A- (stable)
CARE
ICRA
CARE
ICRA
28
Key Business Trends - NBFC
Lending Portfolio
8% 8%
21%
17%
4%
5%
37%
Disbursements (INR Mn)
NII (INR Mn) & NIM (%)
3,260
2,810
4,310
800
607
618
14.00%
636
1,333
11.10%
400
11.50%
10.30%
324
SME-Loan Against Property (LAP) Consumer Durable Loans Onward Lending Direct Assignment
SME-Working Capital Term Loan (WCTL) Capial Market Funding (CMF) SME-Asset Finance
FY20
FY21
FY22
Q1-FY23
FY20
FY21
FY22
Q1-FY23
-
GNPA % & NNPA %
CRAR %
PAT (INR Mn)
224
6.17%
3.66%
4.21%
2.55%
2.84%
1.99%
2.58%
1.49%
61%
58%
51%
49%
185
169
86
FY20
FY21
FY22
Q1-FY23
GNPA%
NNPA %
FY20
FY21
FY22
Q1-FY23
FY20
FY21
FY22
Q1-FY23
Investor Presentation
29
NBFC Industry Outlook
• Non-Banking Finance Companies (NBFCs) have played an important role in the Indian financial system by complementing and competing with banks, and by bringing in efficiency and diversity into financial intermediation.
• NBFCs have evolved considerably in terms of operations, heterogeneity, asset quality and profitability, and regulatory architecture. Going forward, the growing systemic importance and interconnectedness of this sector calls for regulatory vigil.
• The regulatory approach of the Reserve Bank has adapted to the increase in complexity of the entities within the NBFC sector as well as the growing significance of NBFCs within the financial sector.
• The number of registered MSMEs has grown to 63 Mn units in 2022 at a growth rate of 18.5% from the previous year with the launch of Udyog Aadhaar Memorandum policy promoting business activities in the country.
•
India has a large unmet SME credit as less than 20% of these SMEs have access to credit facilities which brings the potential addressable market of INR 19.4 Tn under this credit gap.
• Availability of good credit borrowers supported with rising income levels as demand is being
fuelled by economic growth.
• Government polices like “Atmanirbhar Bharat”, and “Make in India” promote the facilitating of credit to MSME organizations for which the market is growing at a rate of 12% year on year.
MSME Credit Market – India
Market Size: INR 70+ Tn
47%
25%
28%
Credit Gap: INR 19+ Tn
Banks & NBFC
Credit Gap
Informal Channels
Investor Presentation
Sources: SIDBI, IBEF
30
Financial Overview
31
Historical Consolidated Income Statement
Particulars (INR Mn)
Operational Income
Total Expenses
EBITDA
EBITDA Margins (%)
Other Income
Depreciation
Interest
Profit (Loss) from Joint Venture
PBT
Tax
Profit After tax
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Basic & Diluted EPS (INR)
Investor Presentation
FY20
7,785
6,599
1,186
15.23%
56
192
599
-
451
212
239
3.07%
(63)
176
2.11
FY21
9,013
7,060
1,953
21.67%
69
180
424
7
1,425
375
1,050
11.65%
27
1,077
9.28
FY22
11,169
8,218
2,951
26.42%
39
201
575
-
2,214
468
1,746
15.63%
16
1,762
15.43
Q1-FY23
2,905
2,196
709
24.41%
6
47
174
-
494
124
370
12.74%
20
390
3.29
32
Historical Consolidated Balance Sheet
Particulars (INR Mn)
ASSETS
Non-Financial Assets
Inventories
Current tax assets (net)
Deferred tax assets (net)
Assets held for sale
Property, plant and equipment
Capital work - in - progress
Right to use - Lease
Other intangible assets
Intangible work-in-progress
Other non-financial assets
Sub-Total Non-Financial Assets
Financial Assets Cash and cash equivalents (incl. Other Bank balance) Receivables
Loans
Investments
Other financial assets
Sub-Total Financial Assets
TOTAL ASSETS
Investor Presentation
FY20
FY21
FY22
Particulars (INR Mn)
FY20
FY21
FY22
-
305
399
24
290
5
389
16
8
178
1,614
6,548
2,783
4,995
857
1,970
17,153
18,767
132
224
317
24
268
-
350
17
1
242
1,575
345
365
223
40
790
-
330
18
12
276
2,399
10,975
12,819
3,339
5,758
1,171
1,056
22,299
23,874
4,347
6,911
1,706
1,243
27,026
29,425
EQUITY AND LIABILITIES
Equity
Share Capital
Other Equity
Non-controlling interest
Total Equity
Non-Financial Liabilities
Current tax liabilities (net)
Provisions
Other non-financial liabilities
Sub-Total Non-Financial Liabilities
Current Liabilities
Trade Payables
Lease Liabilities
Debt Securities
Borrowings
Other Financial Liabilities
Sub-Total Financial Liabilities
Sub-Total Liabilities
TOTAL EQUITY AND LIABILITIES
226
6,588
17
6,831
5
266
116
387
226
7,501
16
7,743
15
234
166
415
226
9,035
16
9,277
-
268
262
530
4,350
4,843
7,108
360
46
1,801
4,992
11,549
11,936
18,767
338
783
3,821
5,931
15,716
16,131
23,874
329
702
3,939
7,540
19,618
20,148
29,425
33
Historical Standalone Income Statement
Particulars (INR Mn)
Operational Income
Total Expenses
EBITDA
EBITDA Margins (%)
Other Income
Depreciation
Interest
PBT
Tax
Profit After tax
PAT Margins (%)
Other Comprehensive Income
Total Comprehensive Income
Basic & Diluted EPS (INR)
Investor Presentation
FY20
4,219
3,588
631
14.96%
310
139
427
375
78
297
7.04%
(61)
236
2.63
FY21
5,013
3,760
1,253
FY22
6,699
4,503
2,196
25.00%
32.78%
197
118
280
1,052
303
749
14.94%
26
775
6.62
142
144
372
1,822
376
1,446
21.59%
(2)
1,444
12.78
Q1-FY23
1,681
1,174
507
30.16%
91
36
115
447
89
358
32.30%
(1)
357
3.29
34
Historical Standalone Balance Sheet
Particulars (INR Mn)
ASSETS
Non-Financial Assets
Inventories
Current tax assets (net)
Deferred tax assets (net)
Property, plant and equipment
Right to use - Lease
Other intangible assets
Intangible work-in-progress
Other non-financial assets
Sub-Total Non-financial Assets
Financial Assets
Cash and cash equivalent (incl. Other Bank balance)
Receivables
Loans
Investments
Other financial assets
Sub-Total Financial Assets
TOTAL ASSETS
Investor Presentation
FY20
FY21
FY22
Particulars (INR Mn)
FY20
FY21
FY22
-
161
184
232
243
9
4
109
942
5,622
1,753
126
4,400
1,310
13,211
14,153
132
163
80
210
263
8
-
137
993
237
213
21
741
246
8
8
125
1,599
10,413
11,933
2,374
128
4,841
656
18,412
19,405
3,611
204
5,527
842
22,117
23,716
EQUITY AND LIABILITIES
Equity
Share Capital
Other Equity
Total Equity
Non-Financial Liabilities
Current Tax Liabilities (net)
Provisions
Other non-financial liabilities
Sub-Total Non-Financial Liabilities
Financial Liabilities
Trade Payables
Lease Liabilities
Debt Securities
Borrowings
Other Financial Liabilities
Sub-Total Financial Liabilities
Sub-Total Liabilities
TOTAL EQUITY AND LIABILITIES
226
5,877
6,103
-
135
55
190
226
6,489
6,715
-
128
80
208
226
7,706
7,932
-
158
123
281
2,974
3,979
6,356
211
37
615
4,023
7,860
8,050
14,153
247
-
2,384
5,872
12,482
12,690
19,405
237
-
1,509
7,401
15,503
15,784
23,716
35
Consolidated Financial Performance
Revenue (INR Mn)
11,169
9,013
7,785
EBITDA (INR MN) & EBITDA Margin (%)
PAT (INR MN) & PAT MARGIN (%)
26.42%
2,951
24.41%
15.63%
11.65%
1,746
12.74%
21.67%
1,953
15.23%
1,186
3,200
2,800
2,400
2,000
1,600
1,200
800
400
-
2,905
709
FY20
FY21
FY22
Q1-FY23
FY20
FY21
FY22
Q1-FY23
Net Worth (INR Mn)
9,261
6,831
7,727
ROE %
13.56%
18.82%
1,050
370
FY21
FY22
Q1-FY23
ROCE %
14.90%
19.74%
3.07%
239
FY20
11.18%
FY20
FY21
FY22
3.50%
FY20
FY21
FY22
FY20
FY21
FY22
Investor Presentation
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
36
Capital Market Highlights
1 Year Share Price Data (as on 30th June, 2022)
35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15%
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Sensex
SMC
Price Data (As on 30th June, 2022)
Shareholding Pattern (As on 30th June 2022)
Face Value
CMP
52 Week H/L
Market Cap (INR Mn)
No. of Share outstanding (Mn)
Avg. Trading Volume ('000)
Avg. Net Turnover (INR Mn)
Investor Presentation
2.0
92.35
104.8/68.1
10,200.0
110.4
393.5
33.9
36.12%
63.88%
Promoters
Public
37
Disclaimer
SMC Global Securities Disclaimer:
No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of SMC Global Securities Limited, which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.
Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.
This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.
This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.
Valorem Advisors Disclaimer:
Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.
For further information please contact our Investor Relations Representatives:
Valorem Advisors Mr. Anuj Sonpal, CEO Tel: +91-22-49039500 Email: smc@valoremadvisors.com
Investor Presentation
38