LKP Corporate Presentation Nov 2013

8/11/2019 LKP Corporate Presentation Nov 2013

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LKP


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Overview

Consolidated Revenues (Rs. Mn.)

Consolidated EBITDA (Rs. Mn.)

LKP Finance (NBFC) is registered with RBI and listed on BSE.

Established in 1948. The company went public in 1986.

Key businesses include Equity broking and Distribution, Fixed

Income, Merchant Banking and Treasury.

Large client base of ~80,000 registered customers in broking .

Total broking turnover of ~ Rs. 604 billion in FY12 and Rs. 435

billion in FY11.

Fixed Income volumes in secondary market of Rs.796 billion in

FY09 and Rs.1754 billion in FY10

Network of 1180 outlets in Tier II and Tier III cities (more than 150

cities and towns) across India.

Strong network of 1350 Sub brokers and 40 branches.

Current staff strength of more than 850 people

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A strong balance sheet

INR Mn. H1 FY13* FY12* FY11*

Shareholders Funds 1,604 1,584 1,576

Long term borrowings 41 42 156

Long term provisions 3 6 5

Total Non Current Liabilities 44 48 161

Current Liabilities 1,917 1,949 1,483

Total Liabilities 3,564 3,580 3,220

Fixed Assets 4 152 155

Non Current investments 665 394 438

Deferred Tax Asset 36 49 57

Long Term Loans & Advances 1 78 77

Other Non Current Assets - 12 17

Cash and cash equivalents 261 441 817

Other Current Assets 2,598 2,455 1,660

Total Assets 3,564 3,580 3,220

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* Consolidated Balance Sheet of LKP Finance Ltd


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* Consolidated Profit & Loss of LKP Finance Ltd

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Profitable

INR Mn. H1 FY13* FY12* FY11*

Total Revenue 998 652 1,003

Total Expenditure 518 463 585

Operating Profit 380 189 417

Depreciation 12 19 21

Interest Cost 97 111 66

PBT 75 59 331

Tax 19 23 68

PAT 109 36 263


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99.81%

LKP Securities Limited

Institutional Equities

Broking & Distribution

Fixed Income

Investment Banking

LKP Finance Limited

(NBFC)

Public 46.02%

Promoter Group 53.98%

Shareholding Pattern*

BOD

Mahendra Doshi - Chairman

Sayanta Basu

Pratik Doshi

Milan Bhise

Vineet Suchanti

Hariharan Padmanabhan

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Group structure


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Organization structure

Retail Distribution

Anand Agarwal &

Deepak Singh

Anish Unadkat

President - Fixed Income

Sanjay ChitaliaS.S.Gulati

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Board Sub CommitteeMahendra Doshi, Sayanta Basu , Pratik Doshi

CEO Equities and CFO Head - Corporate Affairs


& ResearchIT

S.Ranganathan Mathur

30 Branches

850 Sub brokers

Team of more

than 300 people

Supported by a team of 40

personnel


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Total brokerage market: 12,000 cr per

annum growing at 20% per annum with the

natural tailwinds of GDP and greater

domestic and foreign participation.

800 brokers and 62,000 sub-brokers.

Capital key to success with regulators

making life difficult for weaker players.

Retail pool 3 times bigger than the

institutional pool

Investment banking pool about INR 2000

cr, more than 100 players

Consolidation of the industry a matter of

time

Asset management a volume game and

not attractive for brokers/investment banks

Risks: Pro-longed de-rating of India

The opportunity

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Industry revenue pool from equity

broking at ~Rs 13,000 crores for FY11

grew by only 13% as compared to the46% growth in exchange trading

volumes.

The industry is likely to grow at a

moderate pace unless there is a material

pick up in cash volumes and increased

activity from of retail investors.

15,000 brokers and 37,000 SEBI

registered sub-brokers. Among these,

there are over 1,200 active brokers on

NSE and over 600 on BSE. The industry

is witnessing challenging times with the

top brokers losing market share with

competition from foreign brokeragehouses and declining volumes in the

cash segment. Consolidation of the

industry a matter of time

Asset management a volume game and

not attractive for brokers/investment

banks

The opportunity

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Equities: The business today

LKP Finance (NBFC) is registered with RBI and listed on

BSE.

LKP Securities is registered Stock Broker with SEBI.

Key businesses include Equity Broking and Distribution,

Fixed Income, Merchant Banking and some Prop activity.

Large client base of ~80,000 registered customers

Total retail and institutional broking turnover ~Rs. 604 billion

in FY12 and Rs. 435 billion in FY11.

Network of 1350 outlets across more than 150 cities in India.

Retail andInstitutional Daily Turnover (Rs. Mn.)

Retail & Institutional Gross Daily Brokerage (Rs.

In 000)

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2,571

1,485 1,512

2,361

341 334194

65

FY09 FY10 FY11 FY12

Retail Institutional

1,059

1,543

1,282

995

FY09 FY10 FY11 FY12


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Retail Distribution

Pan India footprint with 880 outlets

Strong network to facilitate reach

Large customer base of ~80,000 clients

Strong network of 850 Sub-brokers

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Retail Distribution other products

Mutual Fund Distribution

Insurance Products

AUM worth ~Rs.1155 cr. with Rs.155cr in Equity and

Rs.900cr in Debt

Supported by a team of 33 personnel .

Income generated by way of brokerage i.e., upfront

and trail

Mutual Fund Advisory

Servicing Direct clients , Institutions and Sub Brokers

Forayed in the sales of General and Life Insurance

products in November 2007

Tie-up with Bajaj-Allianz for distribution of their

insurance products.

In-house team of fundamental and technical research

analysts

Supported by a host of financial databases and

information packages like Bloomberg, CRISINFAC,

Capitaline etc.

Services available to both individuals and corporates.

Portfolio Management Services

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Long track record

Established in 1948, taken over by Mr. Mahendra Doshi in 1982

Strong risk management culture, managed 2008 downside with minimal losses.

Minimal proprietary trading activities

Deep relationships in India

Presence in 400+ locations, 80,000 retail and high networth clients giving

nationwide access

Ability to access block deals stemming out of our domestic institutional contacts

More than 50 senior level employees and 1350 franchises

Strong balance sheet

Current Networth - More than Rs. 250 cr.

Negligible Debt

Cash and cash equivalents More than Rs. 70 cr

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Ranked No.2 Arranger for CP & Short Term Debts

and Prime League Table

Placed Fertiliser bonds worth Rs.55 bn. for various

Fertiliser companies in FY09.

Primary placement of CPs, NCDs and CDs of

~Rs.480 bn & Rs.980 bn in FY09 and FY10

respectively. Achieved turnover of ~Rs. 800 bn in

secondary debt market in FY09 and Rs 1748 bn in

FY 10

Acted as an Arranger for private placement of long

term bond issues aggregating to Rs. 123 bn in FY09

& of Rs 236 bn during FY10

Fixed Income: Deals and Placements

Primary Market Debt Raised (Rs. Bn)

Primary Market Nature of Funds

(Rs. Bn) FY08 FY09 FY10 H1FY11

Long Term 2 66 24 14

Short Term 315 280 394 138

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LKP Corporate Presentation Nov 2013

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