Abans Holdings Nov-24

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Questions and Answers

What is the trailing P/E ratio mentioned?

  • 23-24 (correct)
  • 25-26
  • 22-23
  • 20-21

What is anticipated for the market according to the discussion?

  • A decrease in trading volumes
  • A significant increase in stock prices
  • Time correction (correct)
  • Unpredictable trends

What drives the growth in the agency business mentioned?

  • Decreased market competition
  • Lower operational costs
  • Fewer new investments
  • Increased subscription fees (correct)

What type of income is NOT mentioned as part of the agency business?

<p>Sales commission (C)</p> Signup and view all the answers

What percentage is referred to for the annual growth in AUM?

<p>40% (B)</p> Signup and view all the answers

Which type of holding have FPIs sold as mentioned?

<p>G-Sec holdings (B)</p> Signup and view all the answers

What aspect of the agency business is not explicitly listed?

<p>Performance analysis fees (D)</p> Signup and view all the answers

Who congratulated the team on delivering great numbers?

<p>Tejpal Singh (A)</p> Signup and view all the answers

What is the main purpose of today's earnings call as stated by Purvangi Jain?

<p>To educate and bring awareness about the company's performance (D)</p> Signup and view all the answers

Which statement describes Abans Holdings Limited?

<p>A multinational financial services company (D)</p> Signup and view all the answers

Who is introduced as the Chief Financial Officer in the earnings call?

<p>Mr. Nirbhay Vassa (C)</p> Signup and view all the answers

What caution does Purvangi Jain provide regarding forward-looking statements?

<p>They are subject to risks and uncertainties. (B)</p> Signup and view all the answers

Which regions does Abans Holdings have established operations in?

<p>India, UK, Mauritius, Dubai, Hong Kong (D)</p> Signup and view all the answers

What role does Mr. Ketur Shah hold in the company?

<p>Assistant Vice President (D)</p> Signup and view all the answers

What primarily influences the EBITDA margin of the company?

<p>Fee income, lending income, and treasury turnover (D)</p> Signup and view all the answers

Why might EBITDA margins appear lower in quarters with high treasury turnover?

<p>Higher revenue leads to decreased profit margins (D)</p> Signup and view all the answers

How has Abans Holdings changed over the years?

<p>From a commodities trading company to a diversified financial services company (C)</p> Signup and view all the answers

What has been the trend in the capital markets as indicated by Chintan Mehta?

<p>A significant increase followed by a correction (A)</p> Signup and view all the answers

What type of financial services does Abans Holdings provide?

<p>Comprehensive services including broking, management, and lending (C)</p> Signup and view all the answers

What factor is primarily causing foreign portfolio investors (FPIs) to book profits?

<p>High valuations in the Indian market (B)</p> Signup and view all the answers

What level did the Nifty reach at its peak after the COVID-19 crisis?

<p>26,800 (A)</p> Signup and view all the answers

What amount did foreign holders reportedly withdraw in October?

<p>1 lakh crore rupees (A)</p> Signup and view all the answers

How does the management suggest analyzing EBITDA margin?

<p>From a segment point of view rather than overall sales (B)</p> Signup and view all the answers

What is a potential ongoing trend in November regarding foreign investments?

<p>Continued profit booking by FPIs (B)</p> Signup and view all the answers

Who is the Company Secretary & Compliance Officer of Abans Holdings Limited?

<p>Sheela Gupta (D)</p> Signup and view all the answers

On what date was the Q2 FY2024-25 earnings conference call held?

<p>November 12, 2024 (B)</p> Signup and view all the answers

Which regulation forms the basis for the submission made by Abans Holdings Limited?

<p>SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (D)</p> Signup and view all the answers

Which department is addressed in the correspondence from Abans Holdings Limited?

<p>National Stock Exchange of India Limited (C)</p> Signup and view all the answers

What is the subject of the communication sent to BSE and NSE?

<p>Intimation under Regulation 30 (B)</p> Signup and view all the answers

Which organization is hosting the earnings conference call?

<p>Valorem Financial Services (C)</p> Signup and view all the answers

What is the BSE Script Code for Abans Holdings Limited?

<p>543712 (B)</p> Signup and view all the answers

What type of call was hosted on November 12, 2024?

<p>Earnings Conference Call (A)</p> Signup and view all the answers

What trend was observed in brokerage incomes in the last quarter?

<p>Brokerage incomes increased due to high trades and churn. (A)</p> Signup and view all the answers

How has the performance fee changed compared to the last quarter?

<p>Performance fees have decreased marginally. (A)</p> Signup and view all the answers

What was the average monthly performance of the global arbitrage fund?

<p>0.65% (D)</p> Signup and view all the answers

By how much did the AUM of the global arbitrage fund increase in percentage over the last quarter?

<p>12% (D)</p> Signup and view all the answers

What was the AUM of the portfolio management services (PMS) in August 2023?

<p>66 crores (A)</p> Signup and view all the answers

How much fresh inflow did the PMS receive from the Foreign Fund during the half-year?

<p>35 crores (D)</p> Signup and view all the answers

What is the total performance percentage of the PMS for the half-year?

<p>13% (C)</p> Signup and view all the answers

What characteristic describes the global arbitrage fund's performance in relation to market volatility?

<p>It is unaffected by volatility. (D)</p> Signup and view all the answers

What type of loans is the small-sized NBFC exploring based on the provided information?

<p>Loans against shares for investors with portfolios over ₹20 lakhs (C)</p> Signup and view all the answers

What is the typical exposure amount the NBFC is currently willing to take per investor?

<p>₹5 to 6 lakh (A)</p> Signup and view all the answers

What is the range of the internal rate of return (IRR) that the NBFC has achieved for these short-term loans?

<p>18% to 21% (B)</p> Signup and view all the answers

By when does the NBFC expect to have these short-term loans returned to their balance sheet?

<p>By March 2025 (A)</p> Signup and view all the answers

What is a key consideration for the NBFC when exploring new loan segments?

<p>Finding creative ways to manage risk and earn good interest margins (B)</p> Signup and view all the answers

How many loans has the NBFC dispersed in the last quarter as per the discussion?

<p>Approximately 250 to 280 loans (C)</p> Signup and view all the answers

What type of clients is the NBFC primarily targeting for their new loan offerings?

<p>Clients with shareholdings exceeding ₹20 lakhs (A)</p> Signup and view all the answers

What is a potential risk mentioned regarding the new loan segments?

<p>Loans turning bad and impacting profitability (C)</p> Signup and view all the answers

Flashcards

Earnings Conference Call

A financial report that details a company's performance for a specific period, typically a quarter or half-year.

Transcript

The document that records the spoken discussion during an earnings conference call.

Financial Year (FY)

The financial period that runs from April to March in India.

Q2

The second quarter of the financial year, typically spanning from October to December.

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Regulation 30 Intimation

A company's official statement disclosing significant events or changes to investors.

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Listed Company

A public company that has listed its shares on a stock exchange, making them available for trading.

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Company's Website

A company's website where they make information available to stakeholders, such as regulatory filings.

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Company Secretary & Compliance Officer

The title or designation of a person responsible for compliance with securities laws and regulations.

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Abans Holdings

A financial services company with operations in various countries including India, United Kingdom, Mauritius, Dubai, and Hong Kong, providing services like institutional broking, asset management, financial lending, treasury and remittance services

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Earnings Call

A financial statement released periodically by a company, typically on a quarterly or annual basis, that summarizes the company's financial performance for a specific period.

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Forward-Looking Statements

Statements made by a company that may not reflect actual future events and are subject to risks and uncertainties.

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Institutional Broking

A process where securities like stocks and bonds are bought and sold for clients, typically large institutions.

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Asset Management

Managing investments for clients, including creating portfolios of stocks, bonds, and other assets.

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Financial Lending

Providing loans to clients for various purposes, including personal, business, or other financial needs.

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Treasury and Remittance services

A department within a financial institution that manages the company's cash flow and liquidity, and conducts financial transactions.

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Multinational financial services company

A company that has operations in multiple countries and markets, offering its services globally.

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EBITDA margin

A financial metric that measures a company's profitability before deducting interest, taxes, depreciation, and amortization.

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Top line

A measure of a company's revenue from services and products.

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Fee income

Revenue generated from providing services or performing tasks.

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Lending income

Revenue generated from lending money to customers.

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Treasury turnover

Revenue generated from trading financial assets, such as bonds and stocks.

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Profit booking

The period when investors sell off stocks to lock in their profits.

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FPI (Foreign Portfolio Investor)

Foreign investors who invest in a country's financial markets.

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Bull run

A period of significant stock market growth characterized by increasing prices and investor optimism.

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P/E ratio (Trailing P/E)

A valuation metric that compares a company's share price to its earnings per share. Used to assess a company's relative value compared to its peers.

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Time Correction

A period of time where the market experiences consolidation or a downward correction. This can be characterized by decreased trading volume, lower stock prices, and potentially increased volatility.

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FPIs

A broad term referring to entities that invest in foreign securities, usually in a different country than their own. In this context, it likely refers to Foreign Portfolio Investors.

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G-Sec

A type of fixed-income security issued by a government. These are typically considered to be low-risk investments.

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Agency Business

The business of providing financial services to clients, typically including trading, investment advisory, and asset management. This usually involves charging fees for these services.

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Global Arbitrage Fund

A type of investment fund that invests in a diversified portfolio of assets, aiming to generate returns by taking advantage of price differences between markets.

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Performance Fee

A fee charged for managing clients' funds on a percentage of the profit made. The more the fund grows, the larger the performance fee.

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Advisory Income

Income generated from providing financial advice to clients, typically in the form of investment strategies and recommendations.

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Brokerage Income

The income generated from facilitating trades and transactions for clients in the financial market.

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Portfolio Management Service (PMS)

A fund where investors delegate their investment decisions to a professional portfolio manager. Unlike mutual funds, PMS is a personalized service catered to the individual needs and goals of the client.

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Assets Under Management (AUM)

The total value of assets under management in a fund or investment account. It represents the total amount of money that an investment manager is responsible for.

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Performance of a fund

A measure of how much an investment has increased in value over a specific period.

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Inflows

The amount of money that flows into an investment fund from new investors. It signifies investor confidence and the attractiveness of the fund.

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Return

The rate of return on an investment expressed as a percentage. It reflects the percentage change in the value of an investment over time.

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Market Volatility and Investment Performance

The volatility in the market significantly impacts the performance of different investment strategies. When the market is volatile, some investment strategies might perform better than others.

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Non-Banking Financial Company (NBFC)

A type of financial institution that primarily provides loans and other financial services.

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Net Interest Margin (NIM)

The difference between the interest earned on loans and the interest paid on deposits, representing the profitability of financial institutions.

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Exploring new loan segments

Seeking new sources of revenue and expanding into fresh markets or client segments to increase growth and profitability.

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Secured loan

A type of loan that is backed by collateral, such as property or shares, which can be seized by the lender if the borrower defaults.

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Unsecured loan

A type of loan that is not backed by collateral, meaning the lender relies on the borrower's creditworthiness and ability to repay.

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Internal Rate of Return (IRR)

A measure of the profitability of an investment, expressed as a percentage return on the initial investment.

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Short-term loans

Loans with a shorter repayment period, typically less than a year.

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Loan repayment date

The date by which a loan is expected to be repaid.

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Study Notes

Abans Holdings Limited Q2 FY2025 Earnings Call

  • Date: November 18, 2024
  • Purpose: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Transcript of Q2 FY2024-25 earnings conference call on November 12, 2024 is enclosed and available online.
  • Company Overview: A diversified financial services company with operations in India, UK, Mauritius, Dubai, and Hong Kong. Services include institutional broking, asset management, financial lending, and treasury/remittance services.
  • Revenue Growth: Consolidated revenues grew by 76% YoY to ₹641 crore. Half-yearly revenue (FY25) reached ₹937 crore, up 50% YoY.
  • Earnings: EBITDA for Q2 was ₹46 crore (18% YoY growth), net profit was ₹27 crore (17% YoY growth). Half-yearly EBITDA ₹90 crore, net profits ₹52 crore (18% YoY growth).
  • Revenue Segments: Agency business (fee income), finance business (lending income), and capital business (treasury income).
  • Market Trends: The call discussed capital market corrections and pressure on NBFCs and how the company addressed recent market volatility. The significant growth in AUM was noted, though the EBITDA margin decreased from the half-yearly basis.
  • Lending Business: Expanded loan segments, focusing on small-sized loans secured or unsecured in two ways (a) Loan against shares (b) Short-term loans (18-21% IRR returns) to high-net-worth individuals and SMEs. AUM increased by 83 crore (20%).
  • Capital Business (Treasury Operations): Successfully managed excess capital funds, achieving notable H1 performance despite market volatility.

Financial Highlights

  • Consolidated Revenue (Q2): ₹641 crore (76% YoY growth)
  • EBITDA (Q2): ₹46 crore (18% YoY growth)
  • Net Profit (Q2): ₹27 crore (17% YoY growth)
  • Consolidated Revenue (H1 FY25): ₹937 crore (50% YoY growth)
  • EBITDA (H1 FY25): ₹90 crore (18% YoY growth)
  • Net Profit (H1 FY25): ₹52 crore (18% YoY growth)
  • AUM Growth: 17% since March 31, 2024 (due to strong investor confidence)

Further Details

  • Agency Business: Subscription, performance, brokerage, and advisory fees. Significant brokerage income growth due to high volume of transactions.
  • Funds Perfomance: Global Arbitrage fund (0.65% monthly average performance, 12% AUM growth); Portfolio Management Services (PMS) AUM doubled (₹152 crore) and has seen significant investment inflow.

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