Abans Holdings May-24

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Questions and Answers

What is the primary focus of the Finance Business mentioned?

Providing trade opportunities in global markets

Advising high net worth individuals

Managing alternative investments

Offering secured and unsecured term financing (correct)

Which of the following best describes the growth of consolidated revenues for the company?

Approximately 11% year-on-year increase

18.5% year-on-year growth (correct)

4.5% year-on-year increase

27% year-on-year growth

What was the amount of net profits reported for the year?

Rs. 89 crores (correct)

Rs. 1,665 crores

Rs. 2,500 crores

Rs. 150 crores

By how much did EBITDA margins increase year-on-year?

3.5% Signup and view all the answers

What contributed significantly to the increase in assets under management?

The acquisition of SATCO Growth & Momentum portfolio Signup and view all the answers

What was the approximate amount of assets under management as of March 2024?

Rs. 2,500 crores Signup and view all the answers

What strategic approach did the company emphasize in its performance?

Growth in the asset management sector Signup and view all the answers

What body approved the company to operate as an Investment Manager for alternative investment funds?

Securities and Exchange Board of India (SEBI) Signup and view all the answers

What is the primary purpose of the Earnings Call?

To educate and raise awareness about the company's financial performance Signup and view all the answers

Which of the following roles is NOT mentioned as part of the management participating in the call?

Chief Operating Officer Signup and view all the answers

Which statement best describes Abans Holdings Limited?

A diversified financial services company with global operations Signup and view all the answers

What cautionary advice is given regarding forward-looking statements?

They may not accurately reflect future results due to risks and uncertainties Signup and view all the answers

In which regions does Abans Holdings Limited have established operations?

India, United Kingdom, Dubai, and Mauritius Signup and view all the answers

Who introduced the management participants in the Earnings Call?

Purvangi Signup and view all the answers

Which of the following services is NOT listed as part of Abans Holdings Limited's offerings?

Commercial Banking Signup and view all the answers

What is emphasized during the call regarding investment decisions based on forward-looking statements?

They should be made cautiously and not based solely on predicted outcomes Signup and view all the answers

What percentage of the company's borrowings are asset-backed?

70% Signup and view all the answers

What is the company's current stance on equity dilution in the next 12 months?

They have no plans to dilute equity. Signup and view all the answers

What commodity supplies does the company potentially provide for ETFs?

Gold and silver Signup and view all the answers

What action has the company taken regarding mutual funds?

They have applied for a mutual fund license. Signup and view all the answers

What is the company's understanding of Agri-commodities lending?

It has grown over the years. Signup and view all the answers

What is a requirement for ETFs that the company is connected to?

They must have underlying commodities in place. Signup and view all the answers

What is the current status of the company's applications for ETF sponsorship?

They are still awaiting approval. Signup and view all the answers

What sectors has the company indicated it will not venture into for lending operations at this time?

Sectors other than Agri-commodities Signup and view all the answers

What is the Sharpe ratio mentioned in the conversation?

3.12 Signup and view all the answers

When was the Sharpe ratio 3.12 recorded?

April 30, 2024 Signup and view all the answers

What is the expected net exposure of the global arbitrage fund according to Abhishek Bansal?

Almost 0% Signup and view all the answers

What aspect of risk does Harsh Agarwal inquire about regarding spread changes?

Value at risk Signup and view all the answers

What does Nirbhay Vassa say is necessary to access U.S. investor funds?

Regulatory approval Signup and view all the answers

What was the percentage drop in revenue compared to the last quarter, according to Smit Mehta?

50% Signup and view all the answers

What is the nature of the spreads discussed by Abhishek Bansal?

Fungible and settle at the same price Signup and view all the answers

What regulatory body is Nirbhay Vassa referring to for their license application?

Securities and Exchange Commission (SEC) Signup and view all the answers

What is the company's approach to addressing regulatory requirements in different regions?

They look at it from a bird's eye view. Signup and view all the answers

What is the income mentioned in the content attributed to?

New income from global collaborations. Signup and view all the answers

What role does SMC Global Taurus Wealth play in the business model described?

They serve as a sales team for distribution. Signup and view all the answers

What is the company's primary function regarding financial products?

Ideation and manufacturing of financial products. Signup and view all the answers

What type of opportunities does Harsh Agarwal ask about?

Global arbitrage opportunities. Signup and view all the answers

Which financial metric does Abhishek Bansal ask for clarification on?

Information ratio. Signup and view all the answers

What is one of the company's strategies for market expansion?

Replicating licenses in different countries. Signup and view all the answers

Which statement best describes the company's current focus regarding industry engagement?

Covering various industries across the globe. Signup and view all the answers

What was the reported loss for Abans Holdings on a standalone basis for the full year?

Rs. 6.72 crores Signup and view all the answers

What was the primary reason for the loss reported by Abans Holdings?

Employee Stock Options issued to 16 employees Signup and view all the answers

What new licenses has Abans Holdings received to improve their financial performance?

SEBI and IFSC licenses to act as an investment manager Signup and view all the answers

What is the approximate value of assets under management for Abans Holdings from AIFs?

Rs. 300 crores Signup and view all the answers

What financial outcome is expected for Abans Holdings in the coming year?

Positive P&L due to AIF performance and reimbursement incomes Signup and view all the answers

What area is of interest for the current year instead of gold lending?

Agri-commodities Signup and view all the answers

In which year did Abans Holdings expect to pass on the employee costs to subsidiary companies?

Last quarter of 2024 Signup and view all the answers

What does Nirbhay Vassa suggest about the future revenue composition of Abans Holdings?

Potential transitions from capital business to finance or agency business Signup and view all the answers

Study Notes

Abans Holdings Limited Q4-FY24 Earnings Conference Call

Date: May 15, 2024
Moderator: Purvangi Jain (Valorem Advisors)
Management Present: Abhishek Bansal (Chairman & MD), Chintan Mehta (CEO), Nirbhay Vassa (CFO), Ketur Shah (Assistant VP)
Company Description: A diversified financial services company with operations in India, UK, Dubai and Mauritius. Focuses on asset management, financial lending, treasury operations, and remittances.

Financial Highlights (FY24)

Revenue: Rs. 1,378 Crores (18.5% YoY growth)
EBITDA: Rs. 150 Crores (74% YoY growth)
EBITDA Margin: ~11%
Net Profit: Rs. 89 Crores (27% YoY growth)
PAT Margin: ~6.5%
AUM: Rs. 2,500 Crores (from Rs. 1,665 Crores in March 2023)
Growth Drivers: Global arbitrage fund (Mauritius), alternative investment funds, acquisition of a PMS (Portfolio Management Services), and asset management business expansion.
EBIT: Increased from Rs. 21 Crores to Rs. 59 Crores YoY due to asset management focus

Key Business Segments

Agency Business: Multi-asset global institutional trading (equities, commodities, and currencies)
Finance Business: Lending services (secured and unsecured term financing to individuals and SMEs)
Capital Business: Multi-national financial services.

Management Expectations (FY25-26)

Growth: Focus on fee-based income (75%).
Asset Under Management (AUM): Expect continued, likely 8% or greater dollar-term return growth.

Regulatory Approvals & Expansion

SEBI Approval: Received approval to operate as an investment manager for alternative investment funds in India.
Global Expansion: Aiming to expand global arbitrage fund to the US market.
Commodity ETF: Applications submitted for relevant licences (mutual fund & ETF).

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Description

Join us for the Abans Holdings Limited Q4-FY24 Earnings Conference Call, where key management will present the financial highlights and discuss the growth areas. Learn about revenue growth, EBITDA achievements, and strategic acquisitions that are driving the company forward in the financial services sector.