emkay global financial services ltd share price Management discussions



The year 2021-22 was a mixed bag. The first half of the year witnessed mass vaccination drives, easing of restrictions and opening of economies to reverse economic losses. It was further underpinned by quantitative easing methods adopted by the Governments, follow-up support packages, and initiatives towards the revival of economies to bounce back to pre-Covid levels. On the other hand, the second half was marred by the third and fourth waves of the Covid-19 variants which had a domino impact on the outputs of nations. It was further highlighted by the Russia-Ukraine conflict, which began in the end of February 2022, which brought in supply chain disruptions, soaring energy prices and even rising inflationary trends across the globe. Fuel and food prices increased significantly, disproportionately affecting the vulnerable populace across low-income countries.

As a result, the conflicts economic consequences have already caused a considerable slowdown in global economy in CY 2022. This has reflected in the revised projections released by the International Monetary Fund (IMF)s World Economic Outlook (WEO) Report, published in April 2022. In line with the same, the global economy is expected to slow down from 6.1% in CY 2021 to 3.6% for both the years, CY 2022 and CY 2023. These are 0.8% and 0.2%, respectively, lower than the estimations in January 2022 forecast.

Over the medium-run, global growth is expected to slow to around 3.3% post 2023. With the looming concerns on the world economy, the inflation predictions for CY 2022 are 5.7% in Advanced Economies and 8.7% in Emerging Market and Developing Economies (EMDEs), respectively, which is 1.8 and 2.8% points higher than projected in January 2022. Multilateral measures are critical in responding to the humanitarian crisis, preventing further economic fragmentation, maintaining global liquidity, managing financial distress, combating climate change, and ending the pandemic.





The last two years have been difficult for the Indian economy too, on account of the Covid-19 pandemic. Repeated waves of infection, supply-chain disruptions and, more recently, inflation have created particularly challenging times for policy-making. Faced with these challenges, the Government of Indias immediate response was a bouquet of safety-nets to cushion the impact on vulnerable sections of society and the business sector.

Overall, economic activity remained stable in FY 2021-22, despite the third wave of Covid-19, demonstrating that India has learned to cope with virus-related restrictions. This is seen in a number of high-frequency indicators, including electricity consumption, PMI manufacturing, exports, and e-way bill production. The high speed of inoculation has boosted the economys confidence even further. Furthermore, the Government of Indias commitment to asset creation (public infrastructure development), through the Union Budget 2022-23, is expected to re-energise the virtuous cycle of investment and crowd in private investment, enhancing equitable and sustainable growth with large multiplier effects. Once the uncertainty and fear generated by the Covid-19 virus has passed, and the economy stabilises post the after-effects of the Russia-Ukraine war, the consumption shall rise, allowing the private sector to step in with investments to raise production to meet the increased demand. Barring geopolitical and economic surprises, this scenario should play out well for the Indian economy in FY 2022-23.

As per the estimates provided by the IMF, the countrys GDP is expected to grow by 8.2% in FY 2022-23, owing to broad vaccine coverage, gains from supply-side reforms and regulatory ease, healthy export growth, and the availability of fiscal space to ramp up capital spending. The trajectory set for Indias economy by the previous years budget has been reinforced in the Union Budget.

After accounting for grants-in-aid to states for capital works, the capex budget increased by 35.4% over the current years budget predictions, amounting to 4.1% of GDP, which will fuel Gatishaktis seven engines, bridging the infrastructure gap and making life easier. There is a lot of private investment taking place and consumption levels are rising as a result of increased employment. Capex generated by the Government will also encourage further private investment.

The Production-Linked Incentive (PLI) schemes in 14 sectors will further encourage private investment in order to boost export growth and allow for feasible import substitution in the country.


(Source: https://www.ibef.org/economy/monthly-economic- report)

When looking at the inflationary trends, the Consumer Price Inflation (CPI) climbed to 6.95% in March 2022 (a 17-month high) and subsequently to 7.79% in April 2022 (an 8-year high), well above the 2-6% range as aspired by the Reserve Bank of India (RBI). In order to pull down the inflationary pressures, the RBI resorted to an ofl-cycle 40 bps increase in the Repo Rate in May 2022. This, while maintaining an accommodative stance, yet, choosing to moderate and ensure gradual withdrawal of the stimulus to bring back the inflation in control. The global persistence of price shocks is rising, posing bigger inflation risks than predicted in the April 2022 Monetary Policy Committee (MPC) resolution. The measure was also intended at bolstering the economys growth chances and consolidating its medium- term prospects.


The Indian Equity market gave good returns in FY 2021-22, despite the geopolitical turmoil causing disruption in the last quarter of the fiscal.

Following the escalation of the Russia-Ukraine conflict, Foreign Institutional Investors (FIIs) ditched Indian equities as crude oil-led macro and micro impact made Indian stocks less attractive. Nonetheless, Domestic Institutional Investors (DIIs) came to the rescue. DII flows into equities in FY 2021-22 were the highest ever at US$ 26.8 billion compared to outflows of US$ 18.4 billion in FY 202021. These, while the FIIs witnessed equity outflows of US$ 17.1 billion after five consecutive years of inflows. Sectoral indices also posted decent performance during this period. The top gainers in the sectoral space were - Utilities (+63%), Metals (+62%), Media (+54%), Oil & Gas (+42%), Telecom (+42%), and Technology (+40%) (Note: All the percentages reflect an increase over the previous fiscal). Despite the majority of sectors being in green, the Private Banks, Consumer, Autos, and Healthcare segments underperformed. While the Nifty Infra Index marginally outperformed the Nifty50 benchmark owing to the Government thrust on infra capex; the Nifty FMCG Index has been providing significant returns over the past years. While the Nifty Mid-cap and Nifty Small-cap indices significantly outperformed the broader benchmark index in H1 FY 2021-22, the margin of outperformance significantly eroded in the second half, owing to the commodity inflation, expected rate hikes by the US Fed and the War. (Source: https://www. equitymaster. com/indian-share-markets/05/10/2022/Sensex-Nifty-Trade-Fiat-UitraTech- Cement-HUL--Bharti-Airtei-Top-Gainers) (Source: https:// www.franklintempletonindia.com/downloadsServlet/ pdf/equity-market-anaiysis--outiook-february-28-2022- j1yo7bys). However, the overall market breadth was positive in FY 2021-22, with 37 of the Nifty50 constituents closing higher.

As per a report by the Business Standard, for the first time, in terms of market capitalisation, Indias Equity market leapfrogged into the worlds top five. The market cap stood at US$ 3.21 trillion on March 10, 2022, surpassing the United Kingdom, Saudi Arabia, and Canadas markets too. The rise was partially fuelled by the economic resilience, and partly owing to the European countries suflering the losses in market capitalisation, owing to the war conflict.

The FY 2021-22 also witnessed 52 main-line Initial Public Offerings (IPOs), raising capital to the tune of Rs.1.11 lac crore (Source: https://timesofindia.indiatimes. com/business/markets/ipo/ipo-fundraising-at-highest-ever- in-2021-22/articleshow/90473862.cms). This also included the biggest-ever IPO, until then for the Indian markets. These IPOs were underpinned by a buoyant liquidity support, retail participation and positive market sentiments.

Considering the indices performance over the fiscal 202122, the Nifty50 rallied about 2,774.05 points, growing by 18.88% across the year, while the BSE Sensex rallied by about 9,059.36 points i.e. 18.29% over the previous year, which were amongst the best across the globe. The year also witnessed both the indices touching their lifetime highs in October 2021. The rise of BSE created an additional wealth of Rs. 59.75 lac crore for the entire fiscal, which for much part of the year reflected the optimism around this class of investment.

Considering the current scenario, the external risks to the local capital markets have increased with geopolitical developments adding to concerns about global central banks limiting liquidity in response to growing inflation. The Russia-Ukraine crisis increased market volatility across asset classes and intensified potential downside emotion. Industrial and Consumption indices have slowed during the last few months as a result, despite the fact that at the same time last year, the Nifty50 was the second-most expensive index among significant established and emerging markets. At the time of writing this Report in May 2022, the Asian stock markets are down following another Wall Street sell- ofl" fuelled by concerns about increasing US interest rates and inflation, as well as earnings reports.


Although the projections for growth of the economy have been lowered across the board owing to the prevailing geopolitical concerns, the long-term story of the country is still intact. Private consumption and high-touch services are still much below pre-pandemic levels, indicating headroom for growth. Besides, as per the IMF WEO Report, India is expected to continue to remain the fastest-growing economy over the next decade or so.

In the short-term, the geo-political tensions are likely to keep the markets choppy and highly volatile, however, in the long-run they should be propelled by a slew of factors that are over-riding these short-term implications.

On the plus side, Government measures focusing on infrastructure development may be able to assist growth in the medium-run. Improved public spending, greater capacity utilisation, exports, and healthy bank balance sheets, and Government incentives are likely to boost private capital expenditure.


Emkay Global Financial Services Limited (EGFSL) was founded by two first-generation entrepreneurs on January 24, 1995, as Emkay Share and Stock Brokers Private Limited. In 2006, our Company was listed on the stock exchanges, and in 2008 was given its current name.

Our Company provides a variety of transactional and advisory services in the areas of equity, debt, currency, and commodities. Foreign institutional investors, domestic mutual funds, banks, insurance companies, private equity firms, corporate houses, small and medium-sized businesses, and high-net-worth individuals are among our many clients. A stafl of research professionals, a solid infrastructure, and well-managed processes support the breadth of our services.


1. Equity

We, at Emkay believe in long-term value generation and investment. Our research team is a critical pillar that assists in the identification of undervalued stocks through qualitative and quantitative analysis, with the first focus on capital preservation. We work with both institutional and non-institutional clients, assisting them in constructing portfolios that are well- researched, reliable, and promising.

During the FY 2021-2022, the institutional equities segment contributed 53% of the total equity broking business, while the non-institutional segment accounted for the remaining.

Institutional Equities:

Our Institutional Equities cover the markets in Europe, Hong Kong, India, Singapore, Taiwan, the UK, and the United States.

Our clients for Institutional Equities include - Mutual Funds, Insurance Companies, Banks, Foreign Portfolio Investors (FPI), Family Offices, Global Hedge Funds, and Alternative Investment Funds (AIF).

The solutions we provide in Institutional Equities have further advanced through our research tie-up with DBS Vickers Securities, Singapore. This research tie-up will further help benefit our clients through pan Asian market perspective.

Non-Institutional Equities:

Our Non-Institutional Equities covers the markets for India and NRIs clients across the world. Our clients for Non-Institutional Equities include Corporates/HNIs, Family Offices, NRIs, trusts and PE firms. These clients are served through our offices across the country.

The total number of institutional and non-institutional clients stood at 307 and 1,46,681 respectively, as at the end of March 31, 2022.

2. Research

Our Companys research strength is in providing unrivalled, distinctive, comprehensive, and exhaustive real-time insights. Emkay is known in the financial business for producing high-quality, unique research. Through our proprietary research methodology, we analyse and plan the capital allocation strategies for our clients, by conducting a due diligence using institutional-quality analytics, while understanding the macro and micro economic trends and outlook for capital markets.

We have a competent team of analysts and research associates with rich experience and sound domain knowledge in their respective industries. Our coverage of stocks currently stands at 279 as on March 31, 2022, comprising 48 of Nifty50 and all 30 of the BSE Sensex companies.

During the year, our research team bagged top honours at the Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) 2021.

3. Asset Management

FY 2021-22 was a watershed moment for Emkay Investment Managers Limited (EIML). Ever since the Covid-19 impact has started waning off", we have improved our overall value proposition to our investors and advisers in asset management.

Family offices, HNIs, corporations, NRIs, and trusts are among EIMLs clients. We ofler Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs) under this vertical. Our services entail research- backed investments in sectors and companies having a secular growth outlook. Another crucial part of our offerings includes carving products based on the client requirements.

To provide consistent long-term returns, a team of highly experienced and certified portfolio managers and analysts employ proprietary frameworks throughout their investment strategies.

We believe that asset management should prioritise capital preservation and client comfort. As a result, we make certain that the investors are aware of what they are investing in. At EIML, our stock evaluation modules are significantly different from traditional investing strategies. Our investment portfolios are based on two distinct approaches - E-Qual and Smart Alpha.

Our greatest achievement has been in developing a simple narrative that explains why both our ‘E-Qual and ‘Smart Alpha frameworks have consistently outperformed the competition:

• E-Qual

EIMLs patented governance system, E-QUAL, has been able to assess managements based on criteria such as management capability, management integrity, and wealth distribution ability, among others.

• Smart Alpha

Stocks and themes like value migration and consumption are identified using Smart Alpha. The Smart Alpha framework is likely the countrys only one-of-its-kind. It generates consistent returns by eliminating selection and allocation biases in a portfolio through its robust risk management mechanisms.

We have the following offerings under this segment:

Emkay L.E.A.D.

• Emkay L.E.A.D. seeks to achieve long-term capital appreciation by predominantly investing in large and mid-cap high-growth companies with a leadership trait in the sector along with strong moat, quality management and reasonable valuations.

Emkay Emerging Stars Fund

• A Category III AIF

• Emkay Emerging Stars Fund aims at generating long-term capital appreciation for investors from a portfolio of equity and equity related securities

• Benchmark Index: BSE Small cap Index

• Emkay Emerging Stars Fund has won an award by PMS - AIF World for its performance

Emkay Capital Builder

• Based on EIMLs E-Qual Module

• Is a multi-cap portfolio, that aims to identify companies with the potential to build wealth over an investment horizon of 3-5+ years

Emkays 12

• An equal-weighted twelve-stock large cap- oriented strategy

• A buy and hold strategy focusing on companies with wider economic moat and dominant position in the sector

• Combination of value + growth to deliver medium and long-term wealth creation

Emkay GEMS

• An equal-weighted twenty-stock mid cap-oriented strategy

• Focuses on risk adjusted returns

• No wide diversification

• Lower portfolio volatility and high liquidity

• Low portfolio turnover

Key Highlights:

• Distributed proceeds across our previous AIF offerings (Emkay Emerging Stars Fund - Series I, II & III) to the tune of 15% of outstanding units, making us among the few pioneering funds to do this and the initiative has been received well by investors and their advisors. Going forward, as a prudent practice we plan to distribute at periodic intervals the funds generated from the portfolio holdings that we will be exiting during the year

• Our NFO on the AIF platform, the Emkay Emerging Stars Fund Series - IV reported a 25% jump in the commitments raised over the last quarter. The offering was closed on April 30, 2022

• Expansion of our distribution reach through various on-ground and online initiatives. As per the list of the top wealth management firms released by Money Management India report, we are currently empaneled with 2 out of the 5 Securities firm-owned/origin outfits & 2 out of the 7 Private Equity Backed outfits with advanced discussions for empanelment on with several of them

• Season 2 of the highly successful digital series Emkay Alpha Mavens is now being conducted on the PMS Bazaar platform wherein the visibility and engagement is already 3x that of Season 1

• EIML was conferred with an award for the Most Innovative Company of the year (BFSI) at the National Feather Awards, held on April 28, 2022 in Mumbai

4. Wealth Management

Our Company offers the following services under Wealth Management segment - Portfolio building, investment planning, portfolio monitoring and rebalancing, transactional support, MIS and information support, and advisory to corporate treasury management.

Emkay Wealth Advisory Private Limited, our subsidiary, also provides estate and succession planning services through Emkay Wealth. The research vertical of Emkay Wealth publishes articles on the economy, markets, and various asset classes on a regular basis to educate and keep our clients updated on the changing market scenario. What makes Emkay Wealth significantly effective is a systematic approach to distribution, product development, client selection, asset allocation, and technology.

In less than 4 years since inception, at Emkay Wealth, we have scaled operations through our 9 branches across India and with the strength of top quality private bankers/ wealth managers across these locations. As at the end of FY 2021-22 the number of clients increased to 1,529 from 1,350 compared to the previous year, and Assets Under Management (AUMs) increased to Rs.1,967 crore.

To help our Wealth Management business to flourish, we have maintained an entirely open architecture. Our client acquisition plan includes a variety of options, and we are enthusiastic about the future of this segment.

5. Investment Banking

FY 2021-22, was a pivotal year for our Investment Banking Division. Our entry into the IPO space, in the previous year, gained further momentum. Despite being a late entrant, we are one of the rare I-Banks with the first three IPOs in the Left Lead role. Out of the 28 QIPs concluded in FY 2021-22, we have been the Book Running Lead Manager for six of them, which means that every fourth QIP in the market was managed by us.

For Alicon Castalloy, we were the sole BRLM for their QIP, having raised Rs. 80 crore. Besides, for Action Construction Equipment, we helped the Company with their first QIP, to raise Rs. 136 crore. For the Indian Bank (Allahabad), we were a part of the six-bank syndicate for a mega QIP of Rs. 1,650 crore, while for the Bank of Maharashtra, we concluded a QIP of Rs. 404 crore, as part of the four-bank syndicate. Another successful transaction was in the form of a the QIP of Rs. 867 crore, having been part of the seven-bank syndicate. For Mold-Tek Packaging, we helped them with their third consecutive capital raise, of Rs. 104 crore.

Besides, we filed the DRHP for a Rs.500 crore IPO as a Left Lead BRLM and also filed the DRHP for a Rs.600 crore IPO as a sole BRLM.

The tremendous success and responses to these transactions have helped build our reputation further, as we continue to take leaps through the growth momentum we have gathered in the previous years.

Currency and Commodity

Under Commodities, we offer memberships to Multi Commodity Exchange (MCX) and National Commodity & Derivatives Exchange (NCDEX).

The client services provided under Commodities are mainly through:

• Software: Omnesys Nest by Thomson Reuters

• Call & Trade through recorded lines

• Real time Research Advisory through WhatsApp Messages & Phone

• Online Client Back Office access

• Electronic Contract Notes, SMS Facility

Research Reports such as Daily - Technical Report, Monthly - Fundamental Review, and Periodic - Special Report also help keep our customers aware of the Commodity market direction.

Key Service Offerings provided in Currency:

Services are provided through technical reports that provide analysis along with strategies for hedging.

The FX Connaissance captures the movement and trend in INR and provides the monthly outlook.

RBI MPC Meeting Preview special report analyses macroeconomic indicators and estimates its impact on market movement.

Daily FX Insight provides pulse in different segments of Foreign Exchange (Forex) markets along with technical, fundamental analysis. Regular updates about Forex Markets are provided through WhatsApp.

Exchange v/s OTC Spread helps forward premiums between Exchange and OTC market are compared.

USDINR Weekly Insight helps capture the movement and trend in INR weekly and also provides hedging Matrix for Importers and Exporters along with weekly calendar.

Option Max Pain - USDINR is a special report that analyses major derivative concepts on USDINR. It also helps determine the possible levels at expiry.

USDINR Technical Report provides analysis along with strategies for hedging.

The Year in Retrospect

The ban on exports and imports for the FY 2020-21 had caused us to lose some market share. As a result, our YoY volumes had declined across the currency and commodity segments during that fiscal. Leaving such a tough year behind, the volumes in the Commodity market increased in FY 2021-22, as institutional participants such as Mutual Funds became more active.

Our Company had been able to get on board all of the commodity mutual funds. Furthermore, with the assistance of corporate jewellers, we were able to enhance our market share in the commodity business further. Overall, our market share, thus climbed by 33% YoY in fiscal 2021-22.

Our currency business has also seen an improvement, with volumes for the corresponding year increasing by 21% on a YoY basis. Furthermore, in this space, we were able to enrol some large Foreign Portfolio Investment (FPI) clients who contributed considerably to the increase in volumes. We further expect a strong growth in the Commodity and Currency segment this year as well, driven by both people and technology. Despite the repercussions of the pandemic and even through this current inflationary state, our Company continues to invest in technological platforms, which are backed by our extremely skilled and dedicated manpower to help leverage the normalisation of commercial activities.


1. Large Potential IPO and M&A Pipeline

With the Governments ongoing support for entrepreneurship (e.g., Ease of Doing Business, Start-up India, PLI schemes and many more), India is seeing an increase in the number of start-ups and small enterprises. The introduction of the SME exchange has made it easier for SMEs to become listed. Furthermore, increased M&A deals, owing to sectoral consolidation and IPOs are projected as the penetration of private equity and venture capital in Indian companies grows. Once the current high inflationary environment settles down, and the geopolitical environment eases out, the companies that had lined up to raise capital through the primary markets, are expected to join the bandwagon. Along with the moderation in volatility and robust earnings support, the backlog of such IPOs could lead to a strong volume upswing. As per an EY Report, about 20 companies have filed their DRHPs to raise funds in the current fiscal and many more are expected to follow suit.


(Source: https://www.livemint.com/market/stock-market-news/indian-ipo-market-sees-significant- slowdown-in-january-march-ey-11652678416551. html)

2. Financialisation of Household Savings

The household sector contributes around 60% of gross savings in the Indian economy, and thus, remains the major supplier of financial resources for gross investment. One of the key trends being witnessed in the previous few years, is the growing commitment of the India households to invest higher amounts in financial assets — a shift from the conventional physical assets like gold and real estate. The shift is further supported by the gradual economic growth, and diminishing attractiveness of the physical assets, owing to their lower returns compared to the financial assets. As a result, the investment options are expected to find their way into mutual funds, equities, ULIPs, amongst many other options, which are expected to grow at a fair clip. As per a report published by CARE, in October 2021, the financial assets are projected to grow to Rs. 5,12,157 billion by FY 2024-25, accounting for 63% of the overall wealth, compared to Rs. 2,62,912 billion in FY 2019-20.

Going forward, optimism on account of mass vaccination is expected to further boost consumption demand and work further towards restoration of the pre-pandemic spending and saving patterns, which will be further guided towards financialisation of savings.

3. Digital Penetration

Indias overall number of internet users has witnessed a multi-fold increase. The penetration rate stood at 47% of the total population at the start of 2022. Kepios analysis indicates that internet users in India increased by 34 million (+5.4%) between CY 2021 and CY 2022. (Source: https://datareportal. com/reports/digital-2022-india#:~:text=There%20 were%20658.0%20million%20internet,percent)%20 between%202021%20and%202022)

The enormous untapped digital market for rural India has also increased YoY The Governments Digital India plan is helping boost internet connectivity, making it easier for financial services companies to reach the vast untapped and underserved rural markets as well, in addition to the existing improving infrastructure for the urban markets.


The impeding threats arising out of geopolitical tensions, stock market volatility, growing concerns about a rise in the commodity and energy prices, the inflationary impact, potential interest rate hikes to reduce liquidity within the system, the Covid-19 pandemic risk are continuing to hold back the economic recovery. While these factors are likely to pose threats going forward, lets look at some more threats that could hamper the Companys progress.

Risk Impact Mitigation
Technology Risk A huge number of users may cause the server to crash temporarily, causing inconvenience to clients. Besides, the IT systems are crucial from the business standpoint, which could also post risks in the form of failures of systems, any breach of security amongst others. To avoid any disruption to clients, we have launched a cloud-based CRM for commodity PCG Desk and built Web API Services (for data exchange) for Wealth CRM. Besides, at Emkay, we are constantly investing in technology to build a formidable platform for our users.
Cyber Security Risk Cyber-attacks and platform hacking can occur if sufficient essential security systems are not in place. Our effective IT security system and trained software team assist in the prevention, detection, and response to any cyber security attacks.
Competition A growing number of new entrants into the industry could put our market share at risk. We distinguish ourselves from competition by providing high-quality research, advice services, and alpha-generating capabilities.
Inflation Risk The strengthening global persistence of price shocks pose higher inflation risks. In April 2022, the Consumer Price Index (CPI) increased by 7.79 percent over March 2022 (an 8-year high). The Reserve Bank of India (RBI) had to raise the repo rate to 4.4% in May 2022 sparked by these inflationary concerns. The Cash Reserve Ratio (CRR) was also increased by 50 bps. The best way to manage financial growth in an inflationary market is to make sure that we build portfolios that adopt a balanced approach to beat the market vagaries, while giving inflation-beating returns.



(Rs. in lacs)
Particulars As at March 31, 2022 As at March 31, 2021
Financial Assets
(a) Cash and cash equivalents 9,473 4,630
(b) Bank Balance other than (a) above 31,812 28,950
(c) Derivative financial instruments 4 -
(d) Stock in trade (Securities held for trading) 147 -
(e) Trade receivables 8,876 6,690
(f) Loans 4,018 2,767
(g) Investments 3,424 2,883
(h) Other financial assets 14,338 5,633
Sub-total - Financial Assets 72,092 51,553
Non-financial Assets
(a) Current tax assets (net) 150 189
(b) Deferred tax assets (net) 139 399
(c) Property, plant and equipment 2,772 2,898
(d) Right of use assets 412 508
(e) Capital work-in-progress 166 12
(f) Intangible assets under development 12 17
(g) Other intangible assets 25 40
(h) Other non-financial assets 680 868
Sub-total — Non-financial Assets 4,356 4,931
TOTAL - ASSETS 76,448 56,484
Financial Liabilities
(a) Payables 13,666 11,693
(b) Borrowings (other than debt securities) 1,099 1,000
(c) Deposits 2,878 169
(d) Lease liabilities 435 533
(e) Other Financial liabilities 34,190 24,241
Sub-total — Financial Liabilities 52,268 37,636
Non-financial Liabilities
(a) Current tax liabilities 99 70
(b) Provisions 2,277 1,184
(c) Other non-financial liabilities 1,741 954
Sub-total — Non-financial Liabilities 4,117 2,208
(a) Equity share capital 2,464 2,462
(b) Other equity 17,599 14,178
Sub-total - Equity 20,063 16,640
TOTAL - LIABILITIES 76,448 56,484
2021-221 2020-21 2019-20 2018-19
Revenue 27,429 16,183 13,091 14,633
Earnings before interest, tax and depreciation & amortization 5,685 2,800 (287) 2,537
Profit/(Loss) before tax 4,611 1,737 (1,657) 1,222
Profit/(Loss) for the year 3,380 1,113 (1,259) 875
Total assets 76,448 56,484 38,066 32,622
EPS (In Rs.) 13.72 4.52 (5.12) 3.55
Metrics Standalone


March 31, 2022 March 31, 2021 % Change increase (decrease) March 31, 2022 March 31, 2021 % Change increase (decrease)
Current ratio 1.12 1.06 5.66% 1.24 1.16 6.90%
Debt equity ratio NA NA NA 0.05 0.06 (16.67%)
Net profit margin 7.33% 5.61% 30.66% 12.32% 6.88% 79.07%
Return on net worth 9.22% 6.13% 50.41% 16.85% 6.69% 151.87%
Interest coverage ratio 7.47 4.71 58.60% 16.61 7.78 113.50%

Information Technology

Digital transformation drives Emkays strong client acquisition. The penetration in the finance markets is a key focus for Emkay through the digital platforms. With a better user interface and optimised ease of operations on our platforms, we can serve our customers much better. Furthermore, digital innovation, customer feedback and cybersecurity improvements are essential for our continued growth to explore the untapped business potential of our platforms.

Emkays IT department strives for a reliable, resilient platform by building a digital experience across all touch points, predicting market needs, and supplying bespoke goods in response to digital disruption.

Faster Trading Experience through Digital Innovation

Trading experience for our clients is crucial, to ensure that faster, accurate, and secured data is made available to them to make financial decisions. Our competitive product and service oflerings across the platforms with API initiatives help in our endeavour to provide for a better performance and experience to our clientele.

This was ensured by the following key initiatives:

• For a scaled up & fine-tuned hardware for reliability, Emkay has increased capacity and performance enhancements to the Hyperconverge infrastructure.

• Our over-clocked servers and expansion of our data centre facilities for DMA/HF trading clients.

• Increased bandwidth for trading and operations are also maintained thanks to improvements to our network connectivity. As a result, a speedier exchange broadcast is possible to our clients.

• Contextual user learning for our retail customers via our modern and redesigned trading platform - Emtrade Pro.

• An engaging multiple options charts platform to help build a trader community.

• Improved client journey for both the investor and trader with our app.

• GIFT Citys new order management system is being set up.

• Digital Properties built in-house for diverse and growing client base - Emboss, EM API. EM API is our custom API trading platform for algorithmic traders.

• Open-architecture to seamlessly integrate Third-party Products.

• Digital acquisition of direct clients with orders executed online by direct clients.

• Orders placed through Mobile App, Client Terminals, REST API & FIX. Integration with various FIX aggregators such as Bloomberg, Fidessa, Autex, Line data, Charles River, ITG, Eze Castle, NYFIX.

• Improving the performance of middle-office and backoffice platforms.

• Improved collaboration, project management, and documentation tools.

• Better error handling on apps both In-house and Vendor-provided.

• Compliance archival and retention platforms to aid in the storage of our communication data in order to comply with SEBI regulatory retention requirements.

To ensure reliable platforms for our clients, we provided exchange connectivity from the exchanges. Our platforms are supported by technology that has ultralow latency 10G infrastructure at Colocation, spread across multiple racks in various phases. Multicast Tick by Tick and Multi-stream broadcast from NSE helped our clients get data through multiple sources.

Cyber Security

We have secured our infrastructure and security with initiatives like XDR and Next-Gen Antivirus in information security and technology governance across head office & various branches. Hence, our platforms are safer with the 24X7 security monitoring through the security operations centre. IT Department has also worked towards setting up an extended detection and response system correlating various inputs across the landscape.

IT Talent and Growth

Additionally, at Emkay, we have added new talent to the IT team and improved execution and information security procedures. We anticipate additional technology efforts concentrating on the following topics in the future year:

• Adding faster and more accurate processing capabilities to our Institution Operations Software

• A brand-new FIX-enabled Algorithmic Execution Platform for the institutional trading desk will be launched

• Upgrades to our trading platform for retail customers, including mobile and APIs

• Improved visibility of the landscape through information security initiatives such as EDR is under testing and Next-Gen DLP under evaluation

• For improved redundancy, a new disaster recovery system will be set up at a data-centre in a different geographical zone

• Trading APIs for customers who want to build their own trading platform

Managing IT During and Post-pandemic

Emkays objective during and post-pandemic was to focus on long-term sustainability and flexible work-from-home and work-from-office policies for our staff.

We quickly increased internet and remote working capabilities to accommodate all employees. As a result, we have used numerous collaboration technologies to guide the business to be more productive and effective.

While some initiatives were required to be paused during the pandemic-induced lockdowns, we were back on track in the following weeks in terms of building our infrastructure to meet the growing business demands in Trading, Operations, Sales, and Research.


Our Companys HR department has a focused approach to attract the best talent in the market and nurture that talent while ensuring their overall well-being.

We have launched a long-term journey of hiring across functions and roles through prominent institutes such as the Institute of Chartered Accountants, Symbiosis Institute of Management, XIMB Bhubaneswar, and IMT Ghaziabad. Some of them are full-time employees, while others are interns. The goal is to be at the forefront of attracting and grooming the best talent at the entry level. Weve also improved our online Talent Acquisition strategies this year, ensuring that the right talent gets tapped from the right sources and that the Group has a steady supply of talent. Because we work in the knowledge economy, we concentrated on improving our employees functional and behavioural skills. A variety of online and offline programmes were held. We further added customised programmes to Learning Management Systems (LMS) so that employees could learn on the go and at their own speed. Potential employees roles have been expanded, and a clear professional growth path and development have been established.

The overall well-being of our employees and their families is paramount for us, whether through mediation sessions, expert-led diet programmes, ergonomically built seats, among others. Weve also experimented with the Work from Anywhere concept in a few cases, and our preliminary findings are promising. This opens up a great opportunity for drawing a large pool of talent from around the country, which might be cost effective and efficient.

HRMS advancement takes centre stage to ensure that we deliver effortlessly, and that data is integrated at a central level, ensuring that all of our People Processes are environment-friendly from hiring to retirement.

At Emkay, we continue to stand by our employees, promote gender equality, focus on building skills and improving efficiency. Our policy initiatives help in nurturing future leaders who will take our legacy forward.


The Internal Control Systems in place at our Company are adequate, effective and commensurate with the size of our business. Internal control systems are available in a variety of forms. A professional management team is in place, along with the adoption of established policies and procedures. Maintaining an appropriate audit programme with an internal control environment, as well as effective risk monitoring and management information systems, also help with this goal.

Our Company refreshes these systems on a regular basis, in accordance with industry-best practises. Internal audits are used to augment the internal control systems. Management conducts regular evaluations, and there are standard policies and norms in place. These policies and procedures ensure that financial and other records used to compile financial statements and other data are accurate. The Management Information System (MIS) is an important component of our Companys control system.

Regular checks and processes are carried out by our Company. Internal audits are undertaken on a regular basis by an independent audit company. The reports are deliberated, and an executive summary, as well as Action Taken Reports (ATR) and management actions to address the issues, are presented to the Audit Committee/Board meeting for evaluation. Internal auditor reports are reviewed by the Audit Committee. If necessary, corrective actions are taken to improve future systems and procedures in accordance with Internal Control Systems. The auditors work is also recognised by the Board as an independent check on the information obtained from management on our Companys operations and performance.


Statements in the Management Discussion and Analysis about the Companys objectives, plans, estimates, and expectations may be considered forward-looking statements under applicable securities laws and regulations. Actual outcomes may differ significantly from those stated or suggested. Economic developments in the country, industry demand and supply circumstances, input pricing, changes in government regulations, tax laws, and issues such as litigation and labour relations are all important elements that could affect the Companys operations.