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Emkay Global Financial Services Ltd.

BSE: 532737 | NSE: EMKAY |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE296H01011 | SECTOR: Finance - General

BSE Live

Apr 16, 16:00
63.40 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
2,341
10-Day
3,291
30-Day
19,127
1,409
  • Prev. Close

    63.40

  • Open Price

    63.90

  • Bid Price (Qty.)

    63.20 (19)

  • Offer Price (Qty.)

    65.50 (1000)

NSE Live

Apr 16, 15:52
63.40 0.15 (0.24%)
Volume
AVERAGE VOLUME
5-Day
20,143
10-Day
39,424
30-Day
140,172
6,678
  • Prev. Close

    63.25

  • Open Price

    65.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2011 2010 2008 2007 2006

Chairman's Speech

Dear Shareowners, In contrast to the cautious mood that gripped the world economy at the end of fiscal 2009-10, the recently ended year closed on a more stable note. While there was still some uncertainty in parts of Europe and the employment data in the USA lagged behind other more sanguine indicators, it has largely been accepted that the worst is over. However, global economic dynamics are changing. Events in the Middle East and Asia such as a surge in oil and food prices, the rising interest rates in Asia and a disruption of trade with Japan due to the natural disasters - are gaining importance as indicators of global growth drivers. As a result, while incidents in Europe and the US will still command their place of pride, it will be shared with developments in emerging markets. Against the backdrop of relative stability in the international arena, India witnessed strong growth during most of 2010-11, coupled with high inflation. As a result, the priority of the government and the RBI shifted from boosting growth to inflation control. Rising interest rates and tightening of the fiscal deficit had an impact on the growth, especially towards the end of the year. Overall, India recorded a healthy 8.5% GDP growth in 2010-11, though marginally lower than most expectations. Going forward, economic growth is expected to strengthen further as subdued demand picks up. Domestic consumption is expected to recover on the back of good growth in the agricultural sector, which is known to have a lagged effect on demand. Additionally, once inflation is under control and the RBI eases its monetary stance, consumption demand will get a further boost. On the external front, exports to Asian countries are also expected to pick up in 2012-13, according to OECD forecasts. Financial markets During the past year, the markets have reacted to rising interest rates, falling liquidity and the impact of the rising cost of inputs, especially crude oil, on corporate earnings. These resulted in margin pressures and overall, fiscal 2010-11 was a rather lacklustre year for most equity investors. However, a generalisation is difficult since different segments of the market displayed varying behaviour. While the Nifty returned 11%, the mid-caps clocked a dismal 1% and small-caps followed with a negative growth of 4%. There were some sectors like Consumer Durables, which did perform well, returning 48% and the Bankex and BSE Auto Indices gave returns in excess of 20%. BSE Realty and Power also began on a strong note but failed to deliver and ended the year with negative returns of 29% and 12%, respectively. So the fate of investors, during the bygone year was largely linked to their stock and sector picking abilities. Going ahead, it appears that only the ability to have patience will help investors. Building block industries like infrastructure and capital goods, which have not really performed well during the past year, are bound to pay rich dividends in the future if the country progresses at its current rate. More importantly, domestic political equations and the direction of food and crude prices will have an effect on stock prices. At the same time, the international impact could come in the form of some outflow of funds as the US economy recovers and European countries move ahead with their consolidation plans. The natural catastrophe that ravaged Japan in the early part of the current financial year will also cause some slowdown in funds from the Asian region. Nevertheless, outflows of funds are bound to be a temporary phenomenon as investing in Indian equities is still a very attractive proposition. It will continue to be so as long as economic growth remains on its current trajectory. Emkays performance Despite the mixed signals from the market, fiscal 2010-11 was an eventful year for Emkay. Our client base expanded to reach 1 lac plus non-institutional investors and over 140 institutional clients. Making the most of sluggish markets, Emkay organized a series of conferences for institutional clients across the globe. These meets Emkay Confluence were well received and appreciated. Emkays research continued to be the proud recipient of many awards in FY 2010-11 too. Emkay was recognized for its strategy, small cap research, accuracy of earnings estimates and stock picking ability amongst others. While the stock markets were relatively lackluster during the year, our commodities business witnessed an increase in its gross income of nearly 50% from Rs. 6.37 crore to Rs. 9.35 crore. Overall the companys top-line (consolidated) grew by a modest 4.75%, its profit after tax increased by close to 26% to reach Rs. 11.84 crore. Consequently, we maintained our dividend at 10% or Rs. 1 per share. Outlook for the future With growth in the economy moderating and the cost of funds rising, Emkay has decided to adapt itself to the changing scenario and make use of the interim time to change gears. It is our endeavor to arm ourselves with a well planned and meticulously implemented strategy for rationalization and consolidation to achieve better growth in FY 2011-12. While we aim to focus on increasing the efficiency at the branches and may consolidate the branch network in the process, we will diligently implement cost rationalization in operations towards improving our front-end. We will harness our knowledge-based strengths to increase our presence in the mass affluent and affluent markets, in a gradual shift from our focus on micro retail. With our vast experience in the Indian markets and our valuable exposure to global markets as well, we feel confident about weathering financial market undulations and coming through stronger and wiser, as we have in the past. On a concluding note Being a company in which knowledge and service are the pillars on which our growth depends, we acknowledge that our success is attributed to our dedicated employees. We would also like to thank our share holders for reposing their faith in us and supporting our decisions in the best as well as the toughest of times. With our years of experience and your confidence in us and implicit support, we envisage a robust future. Sincerely, Krishna Kumar Karwa Prakash Kacholia Managing Director and CFO Managing Director