Multi Commodity Exchange Of India Limited · NSE:MCX
Multi Commodity Exchange Of India — Investor Presentation (October 2015)
30 slides from Multi Commodity Exchange Of India's investor presentation, October 2015
Slide 1: Investor Overview October 2015
I N V E S T O R O V E R V I E W October 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 As proposed in the Union Budget 2015, FMC (the erstwhile regulator of commodity markets) and SEBI were formally merged on September 28th, 2015. As a result, SEBI commenced regulating the commodity derivatives market under Securities Contra
Slide 4: Overview
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 Q4 FY 2015 As a result of crisis at NSEL (a subsidiary of FTIL), (1) MCX’s erstwhile anchor investor, Launch of Financial Technologies (FTIL) - declared not futures ‘Fit and Proper’; (2)
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: SEBI - The New Regulator
S E B I - T H E N E W R E G U L ATO R 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: SEBI - New Initiatives
S E B I – N E W I N I T I AT I V E S 1. Risk Management Norms Redefined the applicable margin & Mode of Calculations Extreme Loss Margins (ELM) has been introduced Defined Eligible collaterals & Liquid Assets Prescribed minimum haircuts Segment wise capping Minimum cash or equivalent has
Slide 10: 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 H1 - FY2015-2016 FY2014-2015 FY2013-2014 Hedgers/ Industrial Associations / Farmers 71 116 106 Retail Investors 138 249 84 Total 209 365 190 Educational progr
Slide 11: 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 12: 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 (H1 FY 15-16) VALUE OF FUTURES TRADED (INR TN) 200 181 Others*, 170 NCDEX, 0.52% 150 17.04% 119 101 100 78 62 52 50 41 MCX, 82.44% 0 FY FY FY FY FY FY FY FY 2008 2009 2010 2011 2012 2013 2014 2015
Slide 13: 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 Q2 FY2016: INR 22,462.00 crore; Market Share of 84.13%* (Corresponding Quarter Q2 FY2015 ADT INR. 19,248.46 crore; Market Share of 82.06%*) Average daily turnover (ADT) in H1 FY2016: INR 21,849.00 crore; Market Share of 82.
Slide 14: 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 15: Risk Management
RISK MANAGEMENT Intrusion detection and prevention system 15 approved clearing banks and 26 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 16: 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 17: Experienced Management Leadership
EXPERIENCED MANAGEMENT LEADERSHIP PARVEEN KUMAR SINGHAL AJAY PURI SANDEEP KUMAR SARAWGI Company Secretary, Chief Compliance Office Chief Financial Officer Joint Managing Director (CCO), Head IR & CSR Ex-Chief Finance and Risk Officer - Ex-Division chief - SEBI Ex-President – Atherstone Capital
Slide 18: 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 19: 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 20: Financial Overview
FINANCIAL OVERVIEW www.mcxindia.com 20
Slide 21: Financial Highlights – Q2 FY15-16
FINANCIAL HIGHLIGHTS – Q2 FY15-16 INCOME STATEMENT (STANDALONE) INR CR, except for per share amounts Q2 FY2016 Q2 FY2015 Change (Unaudited) (Unaudited) Q/Q Operating Income 61.25 54.83 12% Other Income 28.90 26.68 8% Total Income 90.15 81.51 11% Less : Operating & Other Expenses 42.76 36.80 16% EBIT
Slide 22: Financial Highlights – H1 FY15-16
FINANCIAL HIGHLIGHTS – H1 FY15-16 INCOME STATEMENT (STANDALONE) INR CR, except for per share amounts H1 FY2016 H1 FY2015 Change (Unaudited) (Unaudited) HY/HY Operating Income 117.46 106.42 10% Other Income 54.41 50.97 7% Total Income 171.87 157.39 9% Less : Operating & Other Expenses 79.96 76.96 4%
Slide 23: Balance Sheet (Standalone)
B A L A N C E S H E E T ( S TA N D A L O N E ) In Rs. Crore AS ON AS ON AS ON AS ON PARTICULARS PARTICULARS Sep 30, 15 Mar 31, 15 Sep 30, 15 Mar 31, 15 ASSETS EQUITY AND LIABILITIES Fixed Assets 147.16 145.10 Shareholders’ Funds Share Capital 51.00 51.00 Non-current investments & 137.45 51.40 Loans
Slide 24: Investments
INVESTMENTS As on September 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) Metropolitan Clearing
Slide 25: 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 Q2 – FY 2015
Slide 26: Shareholding Highlights
SHAREHOLDING HIGHLIGHTS SHAREHOLDING STRUCTURE AS ON SEPTEMBER 30, 2015 MAJOR SHAREHOLDERS – SHAREHOLDING MORE THAN 1% NON- RESIDENT CLEARING DIRECTORS Sr. No. Name of Shareholders % INDIANS, MEMBERS, AND 1.46% 0.45% RELATIVES, 0.01% 1 Kotak Mahindra Bank Limited 15.00 2 Blackstone GPV Capital Partn
Slide 27: 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 27
Slide 28: Unaudited Financial Results for Quarter and Half Year Ended September 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 A N D H A L F YEAR ENDED SEPTEMBER 30, 2015 www.mcxindia.com 28
Slide 29: Unaudited Financial Results for Quarter and Half Year Ended September 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 A N D H A L F YEAR ENDED SEPTEMBER 30, 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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