ORBIS FINANCIAL CORPORATION

Incorporated in 2005, Orbis Financial is promoted by Mr. Atul Gupta who had 46% stake in the company as of March 31, 2021. Headquartered in Gurugram, the company operates as a custodial, market intermediary and provide fund accounting, professional clearing, depository services, share transfer, FPI registration and trustee services to a wide range of client segments, namely-PMS, FDI, FPI, DII, AIFs, and TMs. ORBIS is a ‘One stop solution’ offering various securities services to the entire array of financial investors and intermediaries taking its offering into a new league altogether. Orbis Financial commenced operation in FY2009 as a custodian of securities and a clearing member in all market segments registered with SEBI. In FY2019, the company received a licence for offering registrar and transfer agent services and trustee services from SEBI. The trustee services are offered through a wholly-owned subsidiary - Orbis Trusteeship Services Private Limited. company caters to 250 FPIs, 100 PMS, 50 AIF’s and 1500 high net worth individuals (HNI)/non-resident individuals (NRIs). During FY22, the Company has injected fresh capital paving the way to fueling its growth. The Company has already commenced deploying this new capital expanding its business in various segments laying special emphasis on technology.

Highlights of Financial Performance:

· Revenue from operations has grown at a CAGR of 104% from FY19-21. In FY21 Revenue came in at ₹ 66.55 Cr.

· EBITDA Margin improved from 34.2% in FY19 to 35.3% in FY21.

· PAT has grown at a CAGR of 48.56 % from FY 19-21, in FY 21 Company reported Profit of ₹ 15.92 Cr. from ₹ 11.57 Cr.

· Company reported ROE of 10.27% in FY21 and ROCE of 18.82%.

· On consolidated basis company reported cash flow of  ₹ 1226.65 Cr. and free cash flow of ₹ 1225.87 Cr. in FY 21.

Strengths:

1.Biggest strength of Orbis is its financial performance, company revenue is growing at a healthy pace, and their profits margin are also increasing.

2.Capital Market trend in India is gaining traction, runway for growth is huge as only 6-7% of the people have demat account in India which will gain momentum going forward.

3.They have quiet a diversified client base as their dependence on single client is low.

Risks:

1.This type of business has lumpy performance as they are dependent on the market performance, in downcycle revenue of custodian or market related services also fall.

2.The industry remains dominated by bank custodians, particularly the FPI segment which accounts for 34% of the overall industry AUC in the country, given their size it gives advantages to established franchises