Multi Commodity Exchange Of India Limited · NSE:MCX
Multi Commodity Exchange Of India — Investor Presentation (May 2015)
30 slides from Multi Commodity Exchange Of India's investor presentation, May 2015
Slide 1: Investor Overview May 2015
I N V E S T O R O V E R V I E W May 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 n
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 effective July 1, 2013 As a result of crisis at NSEL (a subsidiary of FTIL), (1) MCX’s erstwhile anchor investor, Financial Technologies (FTIL) - declared not ‘Fit and Proper’; (2) FMC asked PwC to conduct Market share a forensic audit
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 Physical Commodities & Quality issues Delivery and settlement processes among the commodity & stock exchanges differ significantly Regulation of Warehouses: SEBI or Warehouse Development and Regulatory Authority (WDRA) & Infrastructure related issues R
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 FY2014-2015 FY2013-2014 Hedgers/ Industrial Associations / Farmers 116 106 Retail Investors 249 84 Capacity Building / Stakeholder programmes 19 10 Total 384 20
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 (FY 14-15) VALUE OF FUTURES TRADED (INR TN) 200 181 Others*, 170 NCDEX, 1.30% 14.66% 150 119 101 100 78 62 52 50 41 MCX, 84.04% 0 FY FY FY FY FY FY FY FY 2008 2009 2010 2011 2012 2013 2014 2015 *
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 Q4 FY2015: INR 21,989.36 crore; Market Share of 87.48% (Corresponding Quarter FY2014 ADT INR. 19,287.17 crore; Market Share of 78.25%) Average daily turnover in FY2015: INR 20,328.26 crore; Market Share of 84.04% (Correspon
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 Handling capacity of 40 million transactions (orders and trades put together) in a day, which is well above the current requirement (Highest capacity
Slide 14: Risk Management
RISK MANAGEMENT Intrusion detection and prevention system 15 approved clearing banks and 46 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 31
Slide 19: Financial Overview
FINANCIAL OVERVIEW www.mcxindia.com 19
Slide 20: Financial Highlights – Q4 FY14-15
FINANCIAL HIGHLIGHTS – Q4 FY14-15 INCOME STATEMENT (STANDALONE) INR CR, except for per share amounts Q4 FY2015 Q4 FY2014 Change (Audited) (Audited) Q/Q Operating Income 58.97 63.96 -8% Other Income 38.83 33.03 18% Total Income 97.80 96.99 1% Less : Operating & Other Expenses 25.61 22.22 15% EBITDA 7
Slide 21: Financial Highlights – FY14-15
FINANCIAL HIGHLIGHTS – FY14-15 INCOME STATEMENT (STANDALONE) INR CR, except for per share amounts FY 2015 FY 2014 Change (Audited) (Audited) Y/Y Operating Income 222.49 340.67 -35% Other Income 109.78 99.27 11% Total Income 332.27 439.94 -24% Less : Operating & Other Expenses 134.91 194.93 -31% EBIT
Slide 22: Balance Sheet (Standalone) and Investments
B A L A N C E S H E E T ( S TA N D A L O N E ) A N D I N V E S T M E N T S AS ON AS ON PARTICULARS AS ON AS ON Mar 31, 15 Mar 31, 14 PARTICULARS Mar 31, 15 Mar 31, 14 EQUITY AND LIABILITIES ASSETS Shareholders’ Funds Fixed Assets 145.10 173.53 Share Capital 51.00 51.00 Reserves & Surplus 1,151.18 1,
Slide 23: 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 turnover abo
Slide 24: Shareholding Highlights
SHAREHOLDING HIGHLIGHTS SHAREHOLDING STRUCTURE AS ON MARCH 31, 2015 MAJOR SHAREHOLDERS – SHAREHOLDING MORE THAN 1% NON- CLEARING DIRECTORS Sr. No. Name of Shareholders % RESIDENT MEMBERS, AND INDIANS, 0.38% RELATIVES, 1 Kotak Mahindra Bank Limited 15.00 1.34% 0.02% 2 Blackstone GPV Capital Partners
Slide 25: 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 25
Slide 26: Audited Financial Results for the Year Ended March 31, 2015
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 T H E Y E A R E N D E D MARCH 31, 2015 www.mcxindia.com 26
Slide 27: Audited Financial Results for the Year Ended March 31, 2015
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 T H E Y E A R E N D E D MARCH 31, 2015 www.mcxindia.com 27
Slide 28: Audited Financial Results for the Year Ended March 31, 2015
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 T H E Y E A R E N D E D MARCH 31, 2015 www.mcxindia.com 28
Slide 29: Audited Financial Results for the Year Ended March 31, 2015
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 T H E Y E A R E N D E D MARCH 31, 2015 www.mcxindia.com 29
Slide 30: 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 30
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