Orbis Financial Corporation Limited
A Rising Custodian in the Indian Market:
Orbis Financial, established in 2005, has carved a niche as a dedicated custodian and clearing member in the Indian financial landscape. Though starting modestly in 2009, they’ve expanded to offer a diverse range of services, including fund accounting, trusteeship, depository, FPI registration, and share transfer agency.
Client Focus:
Their clientele predominantly comprises institutional players like FDIs, PMS firms, FPIs, DIIs, and AIFs, leveraging their custodial expertise. Additionally, they offer clearing services to trading members and FPIs. With over 250 FPIs, 100 PMS, 50 AIFs, and 1500 HNIs and NRIs under their belt (as of November 2021), Orbis caters to a substantial market segment.
Product Portfolio:
The company boasts a comprehensive product portfolio, encompassing:
- Fund accounting and client reporting
- Foreign exchange execution
- Orbisonline, their dedicated online platform
- Depository participant services
- Custody and clearing services
- Derivative clearing
- Trustee services
- Share transfer agency and registrar services
Revenue Streams:
Orbis primarily generates revenue through:
Custodial & Clearing Income: Fees earned from providing custodial and clearing services.
Treasury-Related Income: Revenue from investments and treasury operations.
Orbis Financial Revenue: Miscellaneous income from other services.
Risk Factors:
While promising, Orbis also faces challenges:
Modest Scale: With a 0.35% market share in FY21-22, their performance needs further scrutiny as their size increases.
Industry Concentration: The top ten clients contribute significantly to the industry’s total Asset Under Custody, highlighting reliance on a few major players.
Market Dependence: Orbis’ revenue and profitability are directly linked to capital market performance.
Banking Dominance: Bank-backed custodians hold a large portion of the market share, posing competitive pressure.
High Cost-to-Income Ratio: Orbis’ reliance on partner networks for client acquisition contributes to a 74% cost-to-income ratio, requiring improvement.
Price Rise and Future Outlook:
Despite these challenges, Orbis’ unlisted share price has grown remarkably, soaring 76% in a year. This reflects strong financial results and growing investor confidence. However, sustained success demands strategic efforts to address their limitations and leverage their strengths.
Overall, Orbis Financial presents an interesting investment case with both potential and risks. Careful due diligence and consideration of the identified factors are crucial before making any investment decisions related to their unlisted shares., Buy Orbis Financial unlisted shares, Sell Orbis Financial unlisted shares
Orbis Financial Corporation Limited Unlisted Share – Company Overview
Established on 28 November 2005 Orbis Financial Corporation Limited is registered at the Registrar of Companies, Delhi. Its authorized share capital is Rs. 1,33,00,00,000 and its paid-up capital is Rs.8,76,24,00,000. ORBIS is a ‘One-stop solution’ offering various securities services to the entire array of financial investors and intermediaries taking its offering into to a broad array of Investors including foreign and domestic institutional investors including FPI, FDI, Mutual Funds, Insurance companies, Endowments & Trusts, High Net worth Individuals, AIFs, Stock Brokers, Private Banks, and Portfolio Managers. Headquartered in Gurugram, Haryana. Orbis has played a credible role in the growth of Indian Capital Markets offering a wide range of Securities Services. Orbis Financial Corporation Limited is a focused financial services company dedicated to Investor servicing in inter-related verticals namely Custody & Fund Accounting services, Commodity clearing, Equity derivatives clearing, Currency derivatives clearing, and Share Transfer Agency and Trustee services. Though a privately funded organization, without any backing of banks or financial institutions, Orbis has managed to establish itself in a leadership position as an Indian Financial Market Intermediary.
Incorporation Details of Orbis Financial Corporation Limited
CIN of Orbis Financial |
U67120HR2005PLC036952 |
Registration Date of Orbis Financial |
28/11/2005 |
Category/Sub-category of Orbis Financial |
Public Company Limited by Shares/Indian Non-Govt. Co |
Orbis Financial Registered office address & contact details |
4A Ocus Technopolis, Sector 54, Golf Club Road, Gurugram – 122002, Haryana, India
Telephone: +91 124 4546565 Fax: +91 124 454 6500 |
Orbis Financial Registrar & Transfer Agent address & contact details |
Skyline Financial Services Private Limited,
D-153, A I Floor, Okhla Industrial Area, Phase – I, New Delhi-110020 |
Particulars of Holding, Subsidiary & Associate Companies of Orbis Financial
|
S.NO. |
Name Of The Company | Category | %Of Shares Held |
| 1. | Orbis Trusteeship Services Pvt Ltd | Subsidiary Company | 100% |
Board of Directors of Orbis Financial Corporation Limited
|
S.NO. |
Name of the Directors | Category |
| 1. | Atul Gupta | Executive Chairman |
| 2. | Shyamsunder Agarwal | Managing Director & CEO |
| 3. | Manasi Gupta | Non-Executive Director |
| 4. | Michael Johann Eduard Jaeggi | Non-Executive Director |
| 5. | Pranay Kothari | Non-Executive and Independent Director |
| 6. | R. C. Jain | Non-Executive Director |
| 7. | Shachindra Nath | Non-Executive and Independent Director |
| 8. | S.A.R. Acharya | Non-Executive Director |
Principal Business Activities of Orbis Financial Corporation Limited
| Name & Description of main products/services | NIC Code of the Product /service | % to the total turnover of the company |
| Activities auxiliary to financial service activities | 66190 | 100% |
Shareholding Pattern of Orbis Financial Corporation Limited (As of 31-03-2021)
| S. No. | Shareholder’s Category | No. of Shares | % of total Shares of the company |
| 1 | PROMOTERS | 40,112,787 | 45.77% |
| 2 | PUBLIC | 47,511,213 | 54.23% |
| Total | 87,624,000 | 100 |
Industry Outlook
February 19, 2020, marked the stock market peak before the outbreak of the COVID-19 pandemic that triggered a freefall in share prices.
During the year under review, the Company has injected fresh capital paving the way to fuelling its growth. This new induction of capital takes the subscribed equity capital to INR 876.24 million and the net worth to INR 1544.91 million. Overall macro-level indicators in the Indian economy had taken headwinds because of the COVID-19 Pandemic but the capital market remained buoyant during the year.
Key Highlight of the current fiscal is revenue growth which was up by almost 95.05% and PBT which has increased by 14.61%. The Asset under Custody as of March 31, 2021, stands at INR 341,282.30 million as compared to INR 103,932.60 million as of March 31, 2020, which is a steep increase of about 228%.
Government policies and FII inflows provided strong support to the markets. The market opportunity size is increasing as the world is realizing the potential of India’s growing economy and this is further increasing the probability of accelerating the revenue growth for the company.
ORBIS FINANCIAL CORPORATION Limited Balance Sheet (In Rs. Crores)
| PARTICULAR | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 9.74 | 9.72 | 8.93 |
| Right-of-use assets | 12.73 | 1.04 | 1.21 |
| Investment property | 2.67 | 2.73 | 2.80 |
| Intangible assets | 0.76 | 0.75 | 0.68 |
| Intangible assets under development | 0.25 | 0.21 | 0.02 |
| Financial assets | |||
| Investments | 79.57 | 86.95 | 150.22 |
| Other financial assets | 273.06 | 602.34 | 525.92 |
| Deferred tax assets (net) | – | 1.71 | 1.39 |
| Non-current tax assets (net) | 2.01 | 4.52 | 0.51 |
| Other non current assets | 1.34 | 0.09 | 0.14 |
| Total non-current assets | 382.14 | 710.07 | 691.81 |
| Current assets | |||
| Investments | 79.38 | 2.39 | 673.64 |
| Trade receivables | 29.83 | 8.83 | 12.54 |
| Cash and cash equivalents | 483.57 | 674.78 | 358.28 |
| Bank balances other than cash and cash equivalents | 3659.86 | 2503.38 | 525.49 |
| Other financial assets | 395.63 | 16.70 | 35.25 |
| Other current assets | 9.79 | 7.66 | 2.26 |
| Total current assets | 4658.06 | 3213.75 | 1609.64 |
| Total assets | 5040.21 | 3923.82 | 2301.45 |
| EQUITY AND LIABILITIES | |||
| Equity share capital | 113.63 | 94.31 | 87.62 |
| Other equity | 315.37 | 128.70 | 67.44 |
| Total equity | 429.01 | 223.02 | 155.07 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Lease Liabilities | 10.90 | 0.79 | 0.97 |
| Employee benefit obligations | 1.63 | 0.59 | 0.80 |
| Deferred tax liabilities (net) | 1.49 | – | 0.00 |
| Total non-current liabilities | 14.01 | 1.38 | 1.77 |
| Current liabilities | |||
| Lease Liabilities | 1.70 | 0.37 | 0.30 |
| Trade payables | |||
| Total outstanding dues of micro enterprises and small enterprises | 0.03 | – | 0.08 |
| Total outstanding dues of creditors other than micro enterprises and small enterprises | 80.33 | 31.12 | 16.35 |
| Other financial liabilities | 4504.84 | 3661.44 | 2124.51 |
| Contract liabilities | 1.30 | 0.95 | 1.38 |
| Other current liabilities | 5.15 | 2.79 | 1.49 |
| Current tax liabilities (net) | 2.04 | 1.82 | 0.15 |
| Employee benefit obligations | 1.79 | 0.92 | 0.35 |
| Total current liabilities | 4597.19 | 3699.41 | 2144.61 |
| Total liabilities | 4611.20 | 3700.80 | 2146.38 |
| Total equity and liabilities | 5040.21 | 3923.82 | 2301.45 |
ORBIS FINANCIAL CORPORATION Limited Profit & Loss Statement (In Rs. Crores)
| PARTICULAR | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Income | |||
| Revenue from operations | 296.67 | 154.18 | 66.55 |
| Other income | 3.1032 | 36.85 | 19.97 |
| TOTAL INCOME | 299.78 | 191.03 | 86.53 |
| Expenses | |||
| Employee benefits expense | 40.15 | 22.25 | 20.25 |
| Finance costs | 42.32 | 30.29 | 9.8991 |
| Depreciation and amortization expense | 1.9983 | 1.319 | 1.1469 |
| Other expenses | 93.41 | 71.95 | 35.74 |
| TOTAL EXPENSES | 177.89 | 125.81 | 67.03 |
| Profit before tax | 121.89 | 65.21 | 19.49 |
| Tax expense | |||
| Current year tax | 31.89 | 19.42 | 5.2405 |
| Previous year tax | -2.9589 | -0.3879 | – |
| Deferred tax | 3.385 | -1.6573 | -1.6721 |
| Total TAX EXPENSE | 32.32 | 17.38 | 3.5684 |
| Profit for the year | 89.57 | 47.84 | 15.92 |
| Other comprehensive income | |||
| Items that will not be reclassified subsequently to profit or loss | |||
| Remeasurement of net defined benefit liability | -0.7355 | -0.011 | 0.0013 |
| Income tax effect | 0.1852 | 0.0028 | -0.0004 |
| Other comprehensive income for the year, net of tax | -0.5503 | -0.0082 | 0.0009 |
| Total comprehensive income for the year | 89.02 | 47.83 | 15.93 |
| Earnings per share | |||
| Basic earnings per share (INR) | 8.94 | 5.41 | 1.99 |
| Diluted earnings per share (INR) | 8.34 | 5.03 | 1.82 |
ORBIS FINANCIAL CORPORATION Limited Consolidated Cash Flow Statement (In Rs. Crores)
| PARTICULAR | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Cash flow from operating activities | |||
| Profit before tax | 121.89 | 65.21 | 19.49 |
| Adjustments for: | |||
| Depreciation and amortization expense | 2.00 | 1.32 | 1.15 |
| Share based payments | 6.64 | – | – |
| Finance costs | 42.32 | 30.29 | 9.90 |
| Income from mutual fund investments designated at FVTPL | -1.70 | -35.88 | -19.31 |
| Foreign exchange fluctuation gain (net) | -0.20 | -0.10 | – |
| Interest income | -0.50 | -0.65 | -0.26 |
| Bad debts | 0.13 | – | – |
| Profit on sale of fixed assets | – | -0.01 | – |
| Operating profit before working capital changes | 170.57 | 60.18 | 10.97 |
| Changes in working capital | |||
| Increase in trade payables | 49.23 | 14.70 | 14.13 |
| (Increase)/Decrease in trade receivables | -20.92 | 3.71 | -3.05 |
| Increase in other current liabilities | 2.36 | 2.00 | 0.52 |
| Increase in provisions | 1.16 | 0.35 | 0.27 |
| Increase in other financial liabilities | 843.75 | 1,535.73 | 1,718.84 |
| (Increase) in other financial assets | -1,198.38 | -2,034.77 | -526.77 |
| (Increase) in other non current/current assets | -3.39 | -9.89 | -0.47 |
| Cash (used) in operations | -155.62 | -428.00 | 1,214.45 |
| Income tax paid | -26.19 | -12.93 | 7.39 |
| Net cash flows (used) in operating activities (A) | -181.81 | -440.93 | 1,207.06 |
| Cash flows from Investing activities | |||
| Purchases of property, plant and equipment and intangible assets | -1.01 | -1.76 | -0.78 |
| Addition to capital work-in-progress and intangible assets under development | -0.26 | -0.19 | 0.01 |
| Investment made (net)/ Proceed from sale of Investments (Government Securities and Bonds) | -62.00 | 707.13 | -586.69 |
| (Investment) made in Bonds | -10.97 | -11.00 | – |
| Proceeds from sale of Government Securities | – | 16.01 | – |
| Proceeds from sale of bonds | 5.06 | 58.26 | – |
| (Investment) made in fixed deposits | -8.50 | -1.00 | – |
| Interest received | 0.74 | 0.65 | 0.26 |
| Proceeds from sale of property, plant and equipment and intangible assets | – | 0.03 | – |
| Net cash flows (used) in/generated from investing activities (B) | -76.94 | 768.14 | -988.31 |
| Cash flows from Financing activities | |||
| Proceeds from issuance of equity share capital | 115.04 | 23.63 | 22.12 |
| Interest paid | -41.92 | -30.40 | -9.90 |
| Principal paid on lease liabilities | -0.86 | -0.43 | -0.27 |
| Dividend paid | -4.72 | -3.51 | – |
| Net cash flows generated from/(used) in financing activities (C) | 67.54 | -10.72 | 49.52 |
| Net (decrease)/increase in cash and cash equivalents (A+B+C) | -191.21 | 316.50 | 268.27 |
| Cash and cash equivalents at the beginning of the year | 674.78 | 358.28 | 90.01 |
| Cash and cash equivalents at the end of the year | 483.57 | 674.78 | 358.28 |
| Cash and cash equivalents comprise Balances with banks | |||
| On current accounts | 264.18 | 311.99 | 266.15 |
| Fixed deposits with original maturity of less than 3 months | 219.39 | 362.79 | 92.14 |
| Total cash and bank balances at end of the year | 483.57 | 674.78 | 358.28 |
Let ‘s break down the Cash Flow Statement for the years 2023, 2022, and 2021, activity-wise:
Operating Activities:
In 2023, the company experienced a significant decrease in net cash flows from operating activities compared to the previous two years. The negative cash flow of -INR 181.81 million was primarily due to substantial increases in trade payables, other financial liabilities, and a significant decrease in other financial assets. This indicates challenges in managing working capital and fluctuations in financial positions. The operating profit before working capital changes was highest in 2023, reflecting operational growth.
Investing Activities:
The cash flow from investing activities in 2023 amounted to -INR 76.94 million. This was a decrease from the positive cash flow of INR 768.14 million in 2022. The negative figure suggests substantial investments made in fixed deposits, a decrease in net investments, and proceeds from the sale of government securities and bonds. The company seems to have adjusted its investment strategy, possibly reducing exposure to government securities.
Financing Activities:
Financing activities in 2023 generated a net positive cash flow of INR 67.54 million. This was an improvement compared to the negative cash flow of -INR 10.72 million in 2022. The positive cash flow primarily resulted from the proceeds from the issuance of equity share capital. The company also paid interest and lease liabilities during the year. This suggests a positive financial stance with an infusion of equity capital.
Overall:
The net decrease in cash and cash equivalents for 2023 was -INR 191.21 million. This was a notable drop compared to the positive cash flows in 2022 (INR 316.50 million) and 2021 (INR 268.27 million). The cash and cash equivalents at the end of 2023 were INR 483.57 million. The composition of cash and bank balances reveals a decrease in fixed deposits but an increase in current account balances. This shift may reflect a tactical move to increase liquidity or address short-term financial needs.
In summary, the cash flow statement indicates a challenging year in 2023, marked by a decrease in overall cash flows and changes in investment strategies. The positive financing activities, particularly the issuance of equity share capital, might contribute to future growth and operational stability.
Orbis Financials Limited Financial Ratios
| Financial Ratios | |
| PARTICULAR | 2023 |
| Current Ratio | 1.01 |
| EBITDA | 173.95 % |
| Networth | 92.44 % |
| Return on Equity | 0.2071 |
| Total Assets | 28.42 % |
| Fixed Assets | 83.12 % |
| Current Assets | 45.12 % |
| Current Liabilities | 24.28 % |
| Trade Receivables | 246.02 % |
| Trade Payables | 158.42 % |
The financial ratios of Capgemini provide insight into the company ‘s financial performance and position For March 31, 2023
Net worth of the company has increased by 92.44 %
EBITDA of the company has increased by 173.95 %
Total assets of the company have increased by 28.42 %
Liabilities of the company has increased by 24.28 %
Dividend history of Orbis Financial Corporation Limited ((In Rs. Crores))
| Particulars | 2023 | 2022 | 2021 |
| Dividend Per Share | Rs. 0.8 | Rs. 0.50 | Rs. 0.50 |
| Retained Earnings (In Rs. Crore) | 152.35 | 68.87 | 26 |
