Multi Commodity Exchange Of India Limited · NSE:MCX
Multi Commodity Exchange Of India — Investor Presentation (August 2015)
29 slides from Multi Commodity Exchange Of India's investor presentation, August 2015
Slide 1: Investor Overview August 2015
I N V E S T O R O V E R V I E W August 2015 www.mcxindia.com 1
Slide 2: Disclaimer
DISCLAIMER Certain statements in this presentation contain forward-looking information about Multi Commodity Exchange of India Limited and its subsidiary companies, including their business operations, strategy and expected financial performance and condition. Forward-looking statements include stat
Slide 3: Overview
O V E RV I E W Commenced operations on November 10, 2003 Commodity futures exchanges are regulated by Forward Markets Commission (Regulator of India’s commodity markets), under the Ministry of Finance, Government of India As proposed in the Union Budget 2015 FMC and SEBI will be merged. Post t
Slide 4: Overview: products, participants, subsidiaries, shareholders
O V E RV I E W Market Major Products offered Settlement Subsidiaries participants Shareholders 26 commodity futures • Physical Delivery • Multi Commodity traded (Gold, Silver, Exchange Clearing Cardamom, Cotton, Corporation Ltd. Key among them: Mentha Oil) (MCXCCL)* (100%) • SME Exchange of • Precio
Slide 5: Key Milestones
K E Y M I L E S TO N E S Commodity Transaction Tax (CTT) imposed Market share effective July 1, 2013 of 87.48% in As a result of crisis at NSEL (a subsidiary of Q4 FY 2015 FTIL), (1) MCX’s erstwhile anchor investor, Financial Technologies (FTIL) - declared not Launch of ‘Fit and Proper’; (2) FMC ask
Slide 6: Indian Commodity Market's Potential
INDIAN COMMODITY MARKET’S POTENTIAL The growth of the overall economy in India is expected to drive the underlying demand for commodities. The increase in physical market volumes may increase the hedging requirements of industry players, which influences derivative trading volumes. Commodity der
Slide 7: The SEBI-FMC Merger – A Game Changer
THE SEBI- FMC MERGER – A GAME CHANGER Better market integrity as SEBI has power to raid, search, impose penal fines and take criminal action ‘Dabba’ Trade which according to AC Nielsen report was 3 times of the regulated commodity markets in 2013 (pre CTT) could get curbed Products like indice
Slide 8: Challenges and Impediments
CHALLENGES AND IMPEDIMENTS Dealing with delivery-based commodities & quality issues Delivery and settlement processes among the commodity & stock exchanges differ significantly Escalating competition : The merger also allows equity exchanges to launch commodities Curbs on algorithmic trading
Slide 9: MCX's Market Development Endeavours
M C X ’s M A R K E T D E V E L O P M E N T E N D E AV O U R S Conducting awareness, capacity building and stakeholder programmes Category Q1 - FY2015-2016 FY2014-2015 FY2013-2014 Hedgers/ Industrial Associations / Farmers 21 116 106 Retail Investors 48 249 84 Capacity Building / Stakeholder progra
Slide 10: Strengths
STRENGTHS Leadership position in the Indian Commodities Futures Industry Integrated Well designed Infrastructure and scalable and Network technology of Alliances platform Product & Service Efficient risk Innovation management systems Experienced Board of Directors and Management Team www.mcxindia.co
Slide 11: India's Leading Exchange
I N D I A’ S L E A D I N G E X C H A N G E GROWTH OF INDIAN COMMODITIES MARKET IN TERMS OF MARKET SHARE (Q1 FY 15-16) VALUE OF FUTURES TRADED (INR TN) 200 181 170 Others*, 0.70% 150 NCDEX, 119 18.75% 101 100 78 62* 52 50 41 MCX, 80.55% 0 FY FY FY FY FY FY FY FY 2008 2009 2010 2011 2012 2013 2014 201
Slide 12: Operational Highlights
O P E R AT I O N A L H I G H L I G H T S Average daily turnover (ADT) in Q1 FY2016: INR 21,216.83 crore; Market Share of 80.55% (Corresponding Quarter Q1 FY2015 ADT INR. 18,679.17 crore; Market Share of 80.87%) No. of traded contracts went up from 30 mn to 48 mn yoy Extensive reach: 1782 membe
Slide 13: Technology Platform
T E C H N O L O G Y P L AT F O R M Well designed platform that ensures security, reliability flexibility and functionality Scalable architecture Capable of handling increase in volumes with the introduction of new instruments like options and indices and participation of Financial Institutions
Slide 14: Risk Management
RISK MANAGEMENT Intrusion detection and prevention system 15 approved clearing banks and 49 exchange-designated warehouses help manage the daily mark-to-market settlement at the in-house clearing house, and support physical delivery Online real-time risk monitoring system and mechanisms track
Slide 15: Experienced Board of Directors
E X P E R I E N C E D B O A R D O F D I R E C TO R S SATYANANDA MISHRA, IAS (Retd.) DINESH KUMAR MEHROTRA G. ANANTHARAMAN, IRS (Retd.) Chairman, Independent Director, FMC Independent Director, FMC Nominated Independent Director, FMC Approved Approved Former Chairman, Life Insurance Presently, Sp
Slide 16: Experienced Management Leadership
EXPERIENCED MANAGEMENT LEADERSHIP PARVEEN KUMAR SINGHAL AJAY PURI SANDEEP KUMAR SARAWGI Company Secretary, Chief Compliance Officer & Chief Financial Officer Joint Managing Director Head IR Ex-Chief Finance and Risk Officer - Ex-Division chief - SEBI Ex-President – Athorstone Capital Antwerp D
Slide 17: Product & Service Innovation
P R O D U C T & S E RV I C E I N N O VAT I O N Launched mini contracts in First Exchange in India to launch mini contracts to cater to needs of small traders and SMEs India Initiated Evening First Exchange in India to initiate evening sessions to synchronise with trading hours of major Trading S
Slide 18: Integrated Infrastructure and Network of Alliances
INTEGRATED INFRASTRUCTURE AND NETWORK OF ALLIANCES GLOBAL ALLIANCES* Facilitate sharing of information across regional global exchanges Allow penetration of new markets and increase market presence Enhance product offerings *All logos used here are trademarks of respective companies | As on 30
Slide 19: Financial Overview
FINANCIAL OVERVIEW www.mcxindia.com 19
Slide 20: Financial Highlights – Q1 FY15-16
FINANCIAL HIGHLIGHTS – Q1 FY15-16 INCOME STATEMENT (STANDALONE) INR CR, except for per share amounts Q1 FY2016 Q1 FY2015 Change (Unaudited) (Unaudited) Q/Q Operating Income 56.21 51.59 9% Other Income 25.52 24.30 5% Total Income 81.73 75.89 8% Less : Operating & Other Expenses 37.19 40.16 -7% EBITDA
Slide 21: Financial Highlights – Q1 FY15-16 (tax)
FINANCIAL HIGHLIGHTS – Q1 FY15-16 INR CR Q1 FY- 2016 Q1 FY- 2015 Profit before Exceptional Items & Tax 38.24 28.98 Less: Provision for Current Tax 13.67 15.36 Less: Deferred Tax (0.56) (9.78) Total Tax expense 13.11 5.58 Profit after tax excluding exceptional items 25.13 23.40 As per accounting st
Slide 22: Balance Sheet (Standalone)
B A L A N C E S H E E T ( S TA N D A L O N E ) AS ON AS ON AS ON AS ON PARTICULARS PARTICULARS Jun 30, 15 Mar 31, 15 Jun 30, 15 Mar 31, 15 ASSETS EQUITY AND LIABILITIES Fixed Assets 144.98 145.10 Shareholders’ Funds Share Capital 51.00 51.00 Non-current investments & 49.22 51.40 Loans and Advances R
Slide 23: Investments
INVESTMENTS As on June 30, 2015, the Exchange held the following investments Number of Face value Value (in Rs. Value (in Rs. Name of Company Number of Warrants Shares crore) crore) Metropolitan Stock Exchange of India 6,65,99,408 Re. 1/- 7.37 41,59,17,672 41.59 # (MSEI) # MCX-SX Clearing Corporatio
Slide 24: Transaction Charges & Avg. Value Realisation
TRANSACTION CHARGES & AVG. VALUE REALISATION Non-agri Commodities Financial year Average value realisation per lakh Rupee traded Average Daily Transaction Fee Rates (Per FY-2013-14 1.84 Turnover Rs. 1 lakh of turnover) FY-2014-15 1.84 Up to Rs. 350 crore Rs. 2.10 On incremental Rs. 1.40 Q1 – FY 2015
Slide 25: Shareholding Highlights
SHAREHOLDING HIGHLIGHTS SHAREHOLDING STRUCTURE AS ON JUNE 30, 2015 MAJOR SHAREHOLDERS – SHAREHOLDING MORE THAN 1% NON- Sr. No. Name of Shareholders % CLEARING DIRECTORS RESIDENT AND MEMBERS, INDIANS, RELATIVES, 1 Kotak Mahindra Bank Limited 15.00 0.22% 1.38% 0.02% 2 Blackstone GPV Capital Partners M
Slide 26: Latest Financial Results
L AT E S T F I N A N C I A L R E S U LT S www.mcxindia.com 26
Slide 27: Unaudited Financial Results for Quarter Ended June 30, 2015
U N A U D I T E D F I N A N C I A L R E S U LT S F O R Q U A R T E R E N D E D JUNE 30, 2015 www.mcxindia.com 27
Slide 28: Unaudited Financial Results for Quarter Ended June 30, 2015
U N A U D I T E D F I N A N C I A L R E S U LT S F O R Q U A R T E R E N D E D JUNE 30, 2015 www.mcxindia.com 28
Slide 29: Thank You
THANK YOU INVESTOR RELATIONS CONTACT: Mr. Ajay Puri Company Secretary, Chief Compliance Officer & Head IR +91 22 6731 8888 Ajay.puri@mcxindia.com www.mcxindia.com 29
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