Multi Commodity Exchange Of India Limited · NSE:MCX
Multi Commodity Exchange Of India — Investor Presentation (February 2016)
33 slides from Multi Commodity Exchange Of India's investor presentation, February 2016
Slide 1: Investor Overview February 2016
I N V E S T O R O V E R V I E W February 2016 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: 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 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 SEBI’s powers to raid, search, impose penal fines and take criminal action will ensure better market integrity ‘Dabba’ Trade (bucket shops) which according to AC Nielsen report was 3 times of the regulated commodity markets in 2013 (pre CTT) could get curbed
Slide 8: Challenges and Impediments
CHALLENGES AND IMPEDIMENTS The central government imposed a CTT of 0.01% on non-agricultural commodity futures transactions, which has increased hedging cost reduced liquidity As a result of the high impact cost, many large corporates have moved their hedging positions to international exchang
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: SEBI - Investment Criteria
SEBI – INVESTMENT CRITERIA Ensure that all shareholders are ‘fit and proper’ & exchange to make quarterly disclosure of the fit and proper status of all shareholders and action taken thereof, if not so Shareholders who acquire above two per cent would have to seek approval from SEBI within 15 da
Slide 11: 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 9M - FY2015-2016 FY2014-2015 FY2013-2014 Hedgers/ Industrial Associations / Farmers 101 116 106 Retail Investors 172 249 84 Total 273 365 190 Educational prog
Slide 12: 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 13: 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 (9M FY 15-16) VALUE OF FUTURES TRADED (INR TN) NCDEX, Others*, 200 181 170 16.82% 0.46% 150 119 101 100 78 52 62 41 50 MCX, 50 82.72% 0 FY2016* FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2
Slide 14: 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 Q3 FY2016: INR 20,374.29 crore; Market Share of 83.33%* (Corresponding Quarter Q3 FY2015 ADT INR. 21,403.95 crore; Market Share of 85.64%*) Average daily turnover (ADT) in 9M FY2016: INR 21,362.50 crore; Market Share of 82.
Slide 15: 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 16: Risk Management
RISK MANAGEMENT Intrusion detection and prevention system 48 approved banks and 2 custodians help manage the member collateral deposits. 15 clearing banks help manage the funds settlement (daily mark-to-market settlement and delivery) at the in-house clearing house 28 Exchange-accredited war
Slide 17: 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, Independent Director, FMC Independent Director, FMC FMC Approved Nominated Approved Former Information Commissioner, Former Chair
Slide 18: 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 M.A.K. PRABHU AJAI KUMAR AMIT GOELA Shareholder Director Shareholder Director Shareholder Director Presently, Managing Director (Integrated Presently, Senior Strategic Presently, Partner at Rare Enterprises Treasury Wing) , Canara Bank Secur
Slide 19: 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 (CCO), Head IR & CSR Ex-Chief Finance and Risk Officer - Ex-Division chief - SEBI Ex-President – Atherstone Capita
Slide 20: Product & Service Innovation
P R O D U C T & S E R V 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
Slide 21: 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 22: Financial Overview
FINANCIAL OVERVIEW www.mcxindia.com 22
Slide 23: Financial Highlights - Q3 FY15-16
FINANCIAL HIGHLIGHTS – Q3 FY15-16 INCOME STATEMENT (STANDALONE) INR CR, except for per share amounts Q3 FY2016 Q3 FY2015 Change (Unaudited) (Unaudited) Q/Q Operating Income 56.96 57.10 - Other Income 20.48 19.98 3% Total Income 77.44 77.08 - Less : Operating & Other Expenses 36.42 32.35 13% EBITDA 4
Slide 24: Financial Highlights - 9M FY15-16
FINANCIAL HIGHLIGHTS – 9M FY15-16 INCOME STATEMENT (STANDALONE) INR CR, except for per share amounts 9M FY2016 9M FY2015 Change (Unaudited) (Unaudited) HY/HY Operating Income 174.42 163.52 7% Other Income 74.90 70.95 6% Total Income 249.32 234.47 6% Less : Operating & Other Expenses 116.37 109.30 6%
Slide 25: 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 Dec 31, 15 Mar 31, 15 Dec 31, 15 Mar 31, 15 ASSETS EQUITY AND LIABILITIES Fixed Assets 142.02 145.10 Shareholders’ Funds Share Capital 51.00 51.00 Non-current investments & 199.18 51.40 Loans
Slide 26: Investments
INVESTMENTS As on December 31, 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 27: 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 Q3 – FY 2015
Slide 28: Shareholding Highlights
SHAREHOLDING HIGHLIGHTS SHAREHOLDING STRUCTURE AS ON DECEMBER 31, 2015 MAJOR SHAREHOLDERS – SHAREHOLDING MORE THAN 1% Sr. No. Name of Shareholders % 1 Kotak Mahindra Bank Limited 15.00 2 Blackstone GPV Capital Partners Mauritius VI FII Ltd 4.79 3 Axis Mutual Fund* 4.32 4 Jhunjhunwala Rakesh Radheshy
Slide 29: 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 29
Slide 30: Unaudited Financial Results for Quarter and Nine Month Ended December 31, 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 N I N E MONTH ENDED DECEMBER 31, 2015 www.mcxindia.com 30
Slide 31: Unaudited Financial Results for Quarter and Nine Month Ended December 31, 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 N I N E MONTH ENDED DECEMBER 31, 2015 www.mcxindia.com 31
Slide 32: Unaudited Financial Results for Quarter and Nine Month Ended December 31, 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 N I N E MONTH ENDED DECEMBER 31, 2015 www.mcxindia.com 32
Slide 33: 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 33
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