Notes from Edel AGM:
Good going on all fronts,
Retail credit is focus area and want to increase the same from current 34% to 50%.
ARC is doing well and has made PAT of 45 crs this qtr will end up making ard > 150 crs this yr.
EDEL consol pat in FY 12 was 170 crs Vs this year only one vertical has pat of 170+ crs.
Aim over next 3 years by 2020 they want to Reach consol ROE of 18% consistently grow PAT at 25/35% and enhance rating to AAA from current AA.
Huge opportunity going forward in the savings space. However it can not be linear growth always.
Always conscious of risk and undertakes business with lot of capital consciousness. For any new business they give good enough time for the base( Mr Rashesh Shah gave analogy of building neev jitni majboot hogi imarat utni buland)
Havent raised capital since IPO and have redeployed profits to grow businesses.
Insurance will breakeven by 2021.
Mostly focused on organic growth however open for inorganic growth too if it adds value. They have done 6/7 acquisitions since inception. Recent was Forefront capital AIF, Ambit alpha fund and JP Morgan AMC.
Asset management and Global wealth is growing at good pace.
On sidelines met Mr Siby Antony CEO of ARC, Very down to earth easy accessible guy, They are very conservative on buying assets especially on Cash deals and where they have majority stake. 15/85 is a sureshot IRR of 20/22% and no brainer. They have seen many resolutions and with new laws like insolvency etc its beneficial to their business. No risk of bad bank as per him as government not very keen on the same it was good to meet @desaidhwanil