Edelweiss Financial Services Ltd. BUY -1 of 30- Monday 6th February, 2017 This document is for private circulation, and must be read in conjunction with the disclaimer on the last page. STOCK POINTER Target Price ₹ 217 CMP ₹ 124 FY19E P/Adj. BV 1.8X Index Details Edelweiss Financial Services Ltd (EFSL) is on the cusp of accelerated growth given the growth opportunities presented by: Under penetration of credit in India Exponential growth of the wealth management industry Unique opportunity presented by the Asset Reconstruction space Emergence of Insurance as a high growth sector Changing investment habits of Indian investor, which is expected to spearhead the growth of the asset management industry Buoyant capital markets which are expected to fuel the growth of the broking segment We believe that EFSL has a robust business model in place to cater to all the above opportunities and partake in the India growth story while keeping risk under control. Overall we expect consolidated revenue to grow at CAGR of 23.6% over the period FY16-19 to Rs.9,933 crore. Consolidated PAT to grow at CAGR of 35.6% over FY16-19 to Rs.1,032 crore. RoA to expand by 68bps to 1.9% by FY19. RoE to broaden by 581bps to 17.1% by FY19. We are optimistic about the prospective fortunes of EFSL given that: Credit book is set to grow at a CAGR of 21.3% to Rs.35,748 crore by FY19. Over the same period asset quality (which is already superior than that of its peers and private banks) is expected to remain stable. We expect the wealth management AUM to grow at a CAGR of 30.8% over FY16-19 to Rs.77,600 crore driven by: o Strong branding of its franchise ‘Edelweiss’ o Aggressive spend towards building the franchise Sensex 28,241 Nifty 8,741 Industry NBFC Scrip Details Mkt Cap (₹cr) 10,263 BVPS (₹) 45.1 O/s Shares (Cr) 83.1 Av Vol (Cr) 1.4 52 Week H/L 44/123 Div Yield (%) 1.2 FVPS (₹) 1 Shareholding Pattern Shareholders % Promoters 36.9 Public 63.1 Total 100.0 EFSL vs. Sensex 0 20 40 60 80 100 120 140 0 5000 10000 15000 20000 25000 30000 35000 01-Jan-14 01-Jan-15 01-Jan-16 01-Jan-17 SENSEX EFSL Rs. Rs. Key Financials (₹ in Cr) Y/E Mar Net Interest Income Non Interest Income PAT EPS Adj. BV RoE (%) RoA (%) P/E(x) P/Adj. BV(x) 2016 1197.9 2351.2 414.5 5.0 45.1 11.3 1.2 24.8 2.7 2017E 1497.0 3445.9 578.3 7.0 49.7 13.6 1.4 17.7 2.5 2018E 1830.0 4191.8 756.7 9.1 58.3 15.1 1.6 13.6 2.1 2019E 2231.2 4973.5 1032.2 12.5 69.9 17.1 1.9 9.9 1.8
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Edelweiss Financial Services Ltd.
BUY
-1 of 30- Monday 6th February, 2017
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
ST
OC
K P
OIN
TE
R
Target Price ₹ 217 CMP ₹ 124 FY19E P/Adj. BV 1.8X
Index Details Edelweiss Financial Services Ltd (EFSL) is on the cusp of accelerated
growth given the growth opportunities presented by:
Under penetration of credit in India
Exponential growth of the wealth management industry
Unique opportunity presented by the Asset Reconstruction space
Emergence of Insurance as a high growth sector
Changing investment habits of Indian investor, which is expected
to spearhead the growth of the asset management industry
Buoyant capital markets which are expected to fuel the growth of
the broking segment
We believe that EFSL has a robust business model in place to cater to all
the above opportunities and partake in the India growth story while
keeping risk under control.
Overall we expect consolidated revenue to grow at CAGR of 23.6% over
the period FY16-19 to Rs.9,933 crore. Consolidated PAT to grow at
CAGR of 35.6% over FY16-19 to Rs.1,032 crore. RoA to expand by 68bps
to 1.9% by FY19. RoE to broaden by 581bps to 17.1% by FY19.
We are optimistic about the prospective fortunes of EFSL given that:
Credit book is set to grow at a CAGR of 21.3% to Rs.35,748 crore by FY19. Over the same period asset quality (which is already superior than that of its peers and private banks) is expected to remain stable.
We expect the wealth management AUM to grow at a CAGR of 30.8% over FY16-19 to Rs.77,600 crore driven by:
o Strong branding of its franchise ‘Edelweiss’ o Aggressive spend towards building the franchise
Degrowth, as ARC business is converted into subsidiary
Retail book to grow at blistering pace
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
FY15 FY16 FY17E FY18E FY19E
Retail Mortgage Agri & Rural Financing Loan against Shares SME & Others
Rs in Cr
Source: EFSL ,Ventura Research
- 10 of 30- Monday 6th February, 2017
This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.
EFSL’s retail mortgage book is expected to grow at a CAGR of 17.6% over FY16-19 to
Rs.4,301 crores. The company has rightly chosen to foray into and expand its housing
finance business considering under penetration of the mortgage market, the gap between
demand and supply and improved affordability as a result of tax incentives.
Agri and Rural finance to grow at a CAGR of 46.3% over FY16-19 to Rs.1,848 crores.
EFSL’s Agri financing also involves providing loans to farmers against which the farmers
keep their stock as collateral in EFSL’s warehouses. For this EFSL earns warehousing
charges in addition to financial income. Today, EFSL is the second largest warehousing
company (315 warehouses) with a capacity of 13.2M tones. It is planning to grow its
warehouses to 500–600 by FY19.
SME finance is expected to grow at CAGR of 92.2% over FY16-19 to Rs.6,032 crores.
With the growing contribution of the SME segment to the economy, the government has
taken a good number of initiatives to encourage the growth of this sector. Considering
this opportunity EFSL has forayed to expand its SME book.
NII to increase steadily with marginal increase in NIMs
Over the period FY14-16, the NII has grown at a scorching pace of 51.4% CAGR to
Rs.1192 crore. Going ahead we expect the NII to increase to Rs.2,270 crore by FY19 (3
Year CAGR of 23.9%). Driven by a surge in retail lending overall yields are expected to
fall by 80bps to 15.4% by FY19. However NIMs are expected to improve marginally by
10bps to 6.9% given the improved cost of funds.
NII NIMs
520
804
1192
1518
1858
2270
0
500
1000
1500
2000
2500
2014 2015 2016 2017E 2018E 2019E
Rs. in Cr
6.7% 6.7% 6.8% 6.8% 6.8% 6.9%
10.1%10.9% 10.7% 10.5% 10.4% 10.3%
15.1%15.8% 16.2%
15.6% 15.5% 15.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
2014 2015 2016 2017E 2018E 2019E
NIM Cost of funds Yields
Source: EFSL, Ventura Research
Source: EFSL, Ventura Research
- 11 of 30- Monday 6th February, 2017
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Cost to Income to witness continuing improvement:
Over the years, the C/I have declined from 48% in FY14 to 44% in FY16. As the benefits
of size accrue we expect the C/I to fall further to 41% by FY19. However the pace of
decline would be significantly lower as the retail book rollout consumes more cost than
wholesale lending.
Asset quality to remain stable:
EFSL has been a step ahead of its peers in managing its asset quality. We have factored
in a deterioration of 30bps/15bps in GNPA/NNPA to 1.7% / 0.7% by FY19.
Cost to Income to decline with increase in credit book
48%
46%
44%
43%
42%
41%
36%
38%
40%
42%
44%
46%
48%
50%
2014 2015 2016 2017E 2018E 2019E
Source: EFSL, Ventura Research
GNPL NNPL
0.90%
1.30%
1.40%
1.50%
1.60%
1.70%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2014 2015 2016 2017E 2018E 2019E
0.20%
0.40%
0.50%
0.55%
0.60%
0.70%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
0.80%
2014 2015 2016 2017E 2018E 2019E
Source: EFSL, Ventura Research
Source: EFSL, Ventura Research
- 12 of 30- Monday 6th February, 2017
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EFSL has a better asset quality than its peers High capital adequacy ensures room for ample growth:
As on FY16, the CAR of EFSL stood at 16.7%. While the CAR is sufficient to cater to its
future growth, we expect EFSL to raise capital in FY18.
High Capital Adequacy to drive future growth
15.312.9 12.3 11.6
10.5
4
3.83.6
3.43.2
0
5
10
15
20
25
FY15 FY16 FY17E FY18E FY19E
Tier I Tier II
In %
Source: EFSL, Ventura Research
GNPL NNPL
1.4% 1.4%
2.7%
7.4%
0%
1%
2%
3%
4%
5%
6%
7%
8%
Edelweiss IIFL L&T Finance holding
Magma Fincorp
0.5% 0.5%
1.7%
5.7%
0%
1%
2%
3%
4%
5%
6%
Edelweiss IIFL L&T Finance holding
Magma Fincorp
Source: EFSL, Ventura Research
Source: EFSL, Ventura Research
- 13 of 30- Monday 6th February, 2017
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Non - Credit Business
Wealth Management: The next growth driver
AUM to grow at a scorching pace
After Kotak and IIFL, EFSL is the 3rd largest wealth management company in India in
terms of AUM size. EFSL has witnessed its wealth management business growing at a
scorching pace of 82% CAGR in its Asset under Advice (AUA) over the period FY14-16.
Presently, EFSL is serving 300 Ultra High-Net worth individuals and more than 1,100 high
net worth families. We expect AUA to grow at a CAGR of 38.0% over the period FY16-19
to Rs.77,600 crore driven by:
Strong branding of its franchise ‘Edelweiss’
Aggressive spend towards building the franchise
Favorable capital markets
Hallmark equity research
Credit business at a glance
Particulars FY16 FY17E FY18E FY19E
Interest Income 2894 3475 4194 5038
(-) Interest expended 1701 1957 2336 2768
Net Interest Income 1192 1518 1858 2270
Growth (%) 27.3% 22.4% 22.2%
Operating cost 562 674 809 960
Operating Income 630 844 1049 1310
(+) Other Income 40 49 60 71
Total income 671 893 1108 1381
Provision 160 216 250 288
Profit before tax 511 678 858 1094
Tax 174 230 292 372
Profit After Tax 337 447 566 722
Growth (%) 32.7% 26.6% 27.5%
(Rs in crore)
Source: Ventura Research
- 14 of 30- Monday 6th February, 2017
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Building a platform for future growth:
The profitability of the wealth management business has yet to start unraveling as the management is burning cash in order to build a franchise of respectable size. This is in keeping with its aspirations of fast closing the gap with its peers. Currently, the cost to income ratio stands at ~98% as EFSL has invested heavily in technology and manpower. However we believe that the company is at an inflection point and profitability should ensure, given the expected aggressive expansion of its AUM to Rs.77,600 crore over FY19 and optimum utilization of its human resources. Over the period FY16-19 we expect the cost to income to improve by ~3300bps to ~65% - 70% by FY19 from the current level of ~98%.
Investment in technological up-gradation to continue
EFSL has also recently signed an agreement for technology business transformation for its two key businesses –Wealth Management and Insurance, where it will undertake about 15 projects across these businesses and spend close to Rs.100 to 175 crore over the next 5-years.
Wealth Management AUM
8900
17750
29500
49500
62000
77600
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2014 2015 2016 2017E 2018E 2019E
In Rs. Cr
Source: EFSL, Ventura Research
Outcome of wealth management business
Particulars FY16 FY17E FY18E FY19E
Commission & fee 201 336 474 593
Growth 67% 41% 25%
Operating Expense 197 295 355 386
Growth 50% 20% 9%
Operating profit 4 40 118 208
Growth 903% 194% 75%
(Rs in crore)
Source: Ventura Research
- 15 of 30- Monday 6th February, 2017
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Asset Reconstruction (ARC): How the ARC business works?
Asset reconstruction companies (ARCs) are formed as a response to a systemic crisis to
protect commercial banks by creating one ‘bad bank’ that takes over the stressed loans of
the entire system. It is a market-driven model that allows banks to take their own decisions
to sell bad loans to ARCs, based on bilateral negotiations and/or auctions.
- 16 of 30- Monday 6th February, 2017
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The market for stressed assets is not adequately developed in India and ARCs are facing
capital constraints.
ARC: A business with latent benefits:
The main objective of EFSL in acquiring any book is to turnaround the company for
unlocking maximum value. On an average it takes around 5-7 years to get money back to
the ARC Company. EFSL ARC which got its license in the year of 2009 is relatively a
Funding for ARC business to improve
2427
3128 30
3430 31 32 34
43
69
0
10
20
30
40
50
60
70
80
FY10 FY11 FY12 FY13 FY14 FY15
Owned funds total assets
In Rs. Billion
Source: Financial Stability Report 2015, Ventura Research
Indian ARC market to mature further
90110
70100
500 500
20 305
30
200 210
0
100
200
300
400
500
600
FY10 FY11 FY12 FY13 FY14 FY15
Book value of asset acquired Acquisition cost
In Rs. Billion
Source: Financial Stability Report 2015, Ventura Research
- 17 of 30- Monday 6th February, 2017
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new business with an AUM of Rs.9,200 crores in FY14 which has rapidly grown to
Rs.31,100 crores as on H1FY17. As these funds (Capital + bonus) start returning, the
ARC business will make a serious contribution to EFLS’s profitability. Any bonus accruals
will be a windfall over and above the invested capital.
EFSL’s ARC AUM has increased at a CAGR of 71.6% over the period FY14-16 to
Rs.27,100 crore. This is expected to grow at CAGR of 26.3% by FY19 to Rs.54,522 crore
on the back of:
NPA problem plaguing the banking sector As NPAs in the banking system have soared to ~6.3 lakh crore, we see a huge
opportunity for ARC companies. However the banking companies are still not interested
in offering their NPAs to ARC companies as they are expecting higher valuations for their
accounts. However, as the NPA woes persist, we expect more banks to unload their
stressed assets on to ARCs. Recently there is an encouraging trend of high value
accounts being turned over to ARC companies.
Reworking of business enhances confidence in business model EFSL has a robust team of specialists, acknowledged for their experience in
debt/business restructuring as well as strong executional capabilities. The Team chooses
case-specific appropriate resolution strategies to unlock maximum value from financially
stressed or distressed companies for the benefit of all stake holders. The primary focus of
ARC has been on the revival and turnaround of potentially viable industrial enterprises
and towards this end, EFSL draws synergistic support from the EFSL Group to extend
additional need based funding, if any required.
ARC AUM
9200
20000
27100
35772
44715
54552
0
10000
20000
30000
40000
50000
60000
2014 2015 2016 2017E 2018E 2019E
In Rs. Cr
Source: EFSL, Ventura Research
- 18 of 30- Monday 6th February, 2017
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Fund investment of Rs.5,000 crore provides for the next leg of growth CDPQ has targeted investment of Rs.5,000 crore over four year in the ARC business.
Through this investment CDPQ will also be acquiring a 20% equity stake in Edelweiss
Asset Reconstruction Company (EARC). Investment will be in the form of equity as well
as debt. The same is the single largest investment by an institutional investor in this
sector. The partnership aims to channel between Rs. 12,000-14,000 crore (including
CDPQ’s Rs. 5,000 crore and investments from the EFSL Group and other international
institutional investors) into private debt and restructuring of stressed assets in the
country.
Contribution from the ARC is expected to grow at a CAGR of 43% to Rs.245 crores from
the current Rs.83 crore.
Asset Management: Industry in a sweet spot
Assets managed by the Indian mutual fund industry have grown from Rs. 5.87 lakh crore
in FY12 to Rs.12.32 lakh crore in FY16 representing a growth of CAGR 28% in assets
over FY12-16.
Contribution from ARC business
Particulars FY16 FY17E FY18E FY19E
(Rs in crore)
Commission & Fee 389 534 684 844
Growth 38% 28% 23%
Other Income 48 65 81 97
Total Income 437 599 765 941
Operating Expense 354 467 582 696
Operating profit 83 132 184 245
Growth 59% 39% 33%
Source: Ventura Research
- 19 of 30- Monday 6th February, 2017
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EFSL’s mutual fund business is set to benefit with the growing brand value of EFSL. Its
AUM from asset management has grown at a CAGR of 19.9% to Rs.5,000 crore over
FY14-16. However post the acquisition of a few schemes from its peers we expect the
AUM to grow at CAGR of 91.3% to Rs.35,000 crore over the period FY16-19.
AMC AUM
2900 3000
5000
20000
28000
35000
0
5000
10000
15000
20000
25000
30000
35000
40000
FY14 FY15 FY16 2017E 2018E 2019E
In Rs. Cr
Source: EFSL , Ventura Research
Mainly due to acquisition of JP Morgan and Ambit alpha schemes
Indian Mutual Fund Industry AUM
5.9
7.0
8.3
10.8
12.3
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
FY12 FY13 FY14 FY15 FY16
Mutual Fund AUM
In Rs. lakh crore
Source: EFSL, Ventura Research
- 20 of 30- Monday 6th February, 2017
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Growth through acquisition
EFSL is expanding its asset management business through acquisition of schemes.
Recently it has acquired 2 schemes of JP Morgan and Ambit Alpha Fund, whose formal
closure is expected by end of FY17. As per the deal between EFSL and JP Morgan,
EFSL would acquire all onshore fund schemes managed by JP Morgan Asset
Management in India including its country-based onshore mutual fund business and the
international fund of funds. EFSL is also acquiring Ambit Alpha Fund with an AUM of over
Rs.1,100 crore. The transaction is subject to due diligence and requisite regulatory
approvals. Acquisition of both these schemes will take the overall AUM to ~Rs.15,000
crores.
Profitability to come in with increase in AUM
Currently EFSL AMCs business contribution is quite low; however post the acquisition of
JP Morgan and Ambit schemes and increased efforts to grow the AMCs AUM should lead
to higher contribution. We expect EFSL AMC’s AUM to increase at a CAGR of 91.3%
over FY16-19 to Rs.35,000 crore (including acquisition of above mentioned schemes).
The contribution from the AMC business is expected to grow at CAGR of 153% to Rs.83
crore over the period FY16-19 from current level of Rs.5 crores.
Capital Markets: India’s ‘Star’ market status augurs well for future growth
Brokerage business to grow along with capital markets
EFSL has a good mix of retail and institutional clients in its daily trading volumes.
However we expect a marginal increase in profit from this business considering the
increased participation from institutional clients. Apart from broking, EFSL also provides
various need based capital market services to its clients.
AMC Outcome
Particulars FY16 FY17E FY18E FY19E
Commission & Fee 14.2 68.8 156.0 236.3
Growth 385% 127% 51%
Other Income 6 7 7 8
Total Income 20 75 163 244
Operating Expense 15 53 111 161
Operating profit 5 23 52 83
Growth 343% 131% 59%
(Rs in crore)
Source: Ventura Research
- 21 of 30- Monday 6th February, 2017
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Brokerage Average Daily Volumes
3100
50005200
6700
0
1000
2000
3000
4000
5000
6000
7000
8000
FY14 FY15 FY16 H1FY17
Nos. in '000 Cr
Source: EFSL , Ventura Research
Outcome of Capital Market business
Particulars FY16 FY17E FY18E FY19E
Brokerage income 232 242 254 270
Fee Income 292 356 420 483
Total Income 524 598 675 753
14% 13% 12%
Operating expense 394 439 479 507
Operating profit 129 159 195 246
Growth 23% 23% 26%
(Rs in crore)
Source: Ventura Research
- 22 of 30- Monday 6th February, 2017
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Industry trends for the Indian Capital Markets Life Insurance: Under penetration implies huge opportunity
In 2016, the size of the Indian life insurance sector (excluding Sahara Life Insurance
Company Limited) was Rs. 3.7 lakh crore on a total premium basis, making it the tenth
largest life insurance market in the world and the fifth largest in Asia [According to Swiss
Re, sigma No 3/2016].
Market Capitalization NSE (In Rs’000 Crore) Number of shares listed on NSE
67
03
60
97
62
39
72
78
99
30
93
10
35
95
42
73
49
28
51
29
57
39
59
65
0
2000
4000
6000
8000
10000
12000
FY11 FY12 FY13 FY14 FY15 FY16
Capital Market Wholesale Debt Market
In Rs. '000 Cr
1646
1666
1688
1733
1808
1550
1600
1650
1700
1750
1800
1850
FY12 FY13 FY14 FY15 FY16
Number of shares listed
In Nos.
Source: NSE Fact Book 2016, Ventura Research
Source: NSE Fact Book 2016,Ventura Research
Trading value of different market segments (INR Cr)
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
FY12 FY13 FY14 FY15 FY16
Capital Markets Equity F&O Currency F&O
In Rs. Cr
Source: NSE Fact Book 2016 , Ventura Research
- 23 of 30- Monday 6th February, 2017
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The total premium in the Indian life insurance sector grew at a CAGR of ~ 17% between
fiscal 2001 and fiscal 2016. Despite this, India continues to remain an underpenetrated
insurance market with a life insurance penetration of 2.7% in fiscal 2015, as compared to
3.7% in Thailand, 7.3% in South Korea and a global average of 3.5% in 2015. This under
penetration offers a significant opportunity and augurs well for the future grows of EFSL’s
insurance business.
Partnership with Tokio Life Insurance
EFSL expanded its addressable retail market by launching EFSL Tokio life insurance
company (ETLIC) in 2011 in partnership with Tokio Marine of Japan. EFSL Tokio was
launched with the highest startup capital for an Indian Life Insurer with Rs.550 crore.
Tokio Marine infused fresh capital of Rs.530 crore taking its share to 49% with EFSL
holding the remaining 51%. Its net worth at the end of FY16 was Rs.939 crore.
Fastest growing insurance company
Over the period FY14-16 ETLIC has emerged as the fastest growing life insurance
company in India with gross premium growing at 68.1% CAGR to Rs.300 crore. ETLIC is
continuously expanding its footprints across agency and partnership with direct channels.
The JV has also scaled up its personal financial advisors. We expect gross insurance to
grow at a CAGR of 52.0% to Rs.1,054 crore by FY19.
Premium as % of GDP as of fiscal 2015 Insurance Density (Prem. Per Capita (US$)) as of fiscal 2015
12.0%
8.3%
7.3%
3.7%3.1%
2.7%2.0%
1.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
S. Africa Japan S. Korea Thailand US India China Indonesia
2717
19401719
688
215 178 15343 43 17 15
0
500
1000
1500
2000
2500
3000
Source: Swiss Re, sigma No 3/2016, Ventura Research
Source: Swiss Re, sigma No 3/2016,Ventura Research
- 24 of 30- Monday 6th February, 2017
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The JV is expected to continue to be in investment phase and breakeven is
expected only by FY2021 onwards.
Insurance premium
106
187
300
495
753
1054
0
200
400
600
800
1000
1200
FY14 FY15 FY16 FY17E FY18E FY19E
In Rs. Cr
Source: EFSL, Ventura Research
Insurance business outcome
Particulars FY16 FY17E FY18E FY19E
(Rs in crore)
Premium 300 495 753 1054
Growth 65% 52% 40%
Other Income 87 95 102 112
Total Income 387 590 855 1166
Cahnge in liability 255 354 487 641
Other Expense 287 413 538 664
Total Expense 542 767 1026 1305
PAT -155 -177 -171 -140
Source: Ventura Research
- 25 of 30- Monday 6th February, 2017
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Financial Performance:
Credit business
The overall credit book of EFSL grew by 29.6% YoY to Rs.21,349 crore (Excluding
Distress Asset Credit) in Q2FY17. Robust increase in the wholesale segment contributed
to NIM expansion by 20 bps. Overall yield also increased by 10bps to 16.2%. Asset
quality slightly declined as GNPA and NNPA increased by 10 bps each.
Financial performance
Particulars Q2FY17 Q2FY16 FY16 FY15
Income from operation
Fee & Commission 240.5 148.0 696.6 572.7
Fund based activities 1227.7 1017.8 4170.4 3082.0
Premium from life insurance 84.6 57.5 300.2 186.6
Other operating income 39.3 16.4 86.8 38.5
Total income from operation 1592.1 1239.7 5253.9 3879.8
Expenses
Employee benefit expenses 276.5 213.4 882.1 708.6
Depreciation & ammortization
expense 22.8 20.7 90.2 71.6
Change in life insurance policy
liability 86.8 49.6 255.5 139.5
Other expense 268.9 188.1 849.0 632.6
Total expense 655.0 471.8 2076.8 1552.4
Profit / (Loss) from operation
befor other income 937.1 767.9 3177.1 2327.4
Other Income 4.4 0.6 14.2 14.0
Profit / (Loss) from ordinary
activities before finance cost 941.5 768.5 3191.3 2341.4
Finacne cost 708.9 637.7 2620.1 1831.5
Profit / (Loss) before tax 232.6 130.8 571.2 509.9
Tax expense 96.8 48.2 235.4 201.7
Net profit /(Loss) after atx 135.8 82.6 335.8 308.2
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