BSE LimitedInvestor Presentation – February 2020
BSE - CONFIDENTIAL
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This presentation and the discussion may contain certain words or phrases that are forward - looking statements, which are tentative, based oncurrent expectations of the management of BSE Limited or any of its subsidiaries and associate companies (“BSE”). Actual results may varysignificantly from the forward-looking statements contained in this presentations due to various risks and uncertainties. These risks anduncertainties include competitive landscape, stakeholders preferences, effect of economic and political conditions in India and outside India,volatility in interest rates and in the securities market, new regulations and Government policies that may impact the businesses of BSE as well asthe ability to implement its strategy.
The information contained herein is as of the date referenced and BSE does not undertake any obligation to update these statements. BSE hasobtained all market data and other information from sources believed to be reliable or are its internal estimates, although its accuracy orcompleteness cannot be guaranteed. Competition numbers are based on published results and management analysis. For purpose of comparison,following stock exchanges are considered – National Stock Exchange of India Limited, Metropolitan Stock Exchange of India Limited and NSE IFSCLimited. The presentation relating to financial performance herein is reclassified/regrouped based on Management estimates and may not directlycorrespond to published data. The numbers have also been rounded off in the interest of easier understanding. Prior period figures have beenregrouped/reclassified wherever necessary. All information in this presentation has been prepared solely by the company and has not beenindependently verified by anyone else.
This presentation is for information purposes only and does not constitute an offer or recommendation to buy or sell any securities of BSE. Anyaction taken by you on the basis of the information contained herein is your responsibility alone and BSE or its directors or employees will not beliable in any manner for the consequences of such action taken by you.
The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes shouldinform themselves about, and observe, any such restrictions.
DisclaimerBSE - CONFIDENTIAL
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Index
About BSE1.
Key Growth Drivers & Other Initiatives
Financial Highlights & Investor Information
2.
4.
3.
BSE - CONFIDENTIAL
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About BSE – Board & Management Team
Board Of DirectorsName Bio
Justice Vikramajit SenChairman andPublic Interest Director
On BSE Board since 2016
◼Former Judge, Supreme Court of India
◼Chairperson of the Broadcasting Content
Complaints Council (BCCC)
Shri Ashishkumar ChauhanManaging Director & CEO
On BSE Board since 2012
◼Previously, Group Chief Information Officer,
Reliance Industries Limited
◼Chairperson of the Board of Governors of National
Institute of Technology, Manipur
Shri Sumit BosePublic Interest Director
On BSE Board since 2016
◼Joined the Indian Administrative Service in 1976
and allotted to the Madhya Pradesh Cadre.
◼Chairman, Expert Committee on working of
Cantonment Boards set up by Ministry of Defence
in January 2018 (work underway).
Shri S. S. MundraPublic Interest Director
On BSE Board since 2018
◼Former Deputy Governor, Reserve Bank of India
◼Former Chairman & Managing Director of Bank of
Baroda
Shri Umakant JayaramPublic Interest Director
On BSE Board since 2019
◼27 years Cross functional experience in Global
Investment Banking, Finance Planning & Analysis,
Risk Consulting / Business transformation
Smt Usha SangwanShareholder Director
On BSE Board since 2015
◼Former Managing Director, Life Insurance
Corporation of India
◼She has been featured in Forbes List of 50 most
powerful Business Women in Asia in 2015
Su Shri Jayshree VyasPublic Interest Director
On BSE Board since 2019
◼Former Managing Director, Shree Mahila Sewa
Sahakari Bank, Ahmedabad
◼In the year 2001, financial literacy programme was
introduced in Sewa Bank, first of its kind in India – at
initiative of Ms. Jayshree Vyas
Shri David WrightPublic Interest Director
On BSE Board since 2018
◼Former General Secretary of IOSCO (2012-2016),
former Deputy Director-General for Securities and
Financial Markets at the EU Commission.
◼From March 2000 – October 2010 he was first
Director, then Deputy Director-General for
securities and financial markets
Name Bio
BSE - CONFIDENTIAL
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About BSE – Board & Management Team
Management TeamName Bio
Shri AshishkumarChauhanManaging Director & CEO
With BSE since 2009
◼B Tech in Mechanical Engineering from IIT Bombay and a
PGDM from IIM Kolkata
◼He is one of the founders of India's National Stock
Exchange (“NSE”) where he worked from 1992 to 2000. He
is best known as the father of modern financial derivatives
in India due to his work at NSE
◼Represents BSE as the Chairman on the Executive Board of
the South Asian Federation of Exchanges.
◼Previously, Group Chief information officer, Reliance
Group
Name Bio
Shri Nayan MehtaChief Financial Officer
With BSE since 2012
◼Having experience of over 28 years, he has earlier
worked at Credit Analysis & Research Ltd. as Joint
General Manager (Accounts), as CFO at Multi
Commodity Exchange of India Limited. He has also
worked at the National Stock Exchange (“NSE”).
◼He represents BSE on the Boards of group companies
and joint ventures of BSE.
Shri Neeraj KulshresthaChief Regulatory Officer
With BSE since 2015
◼Prior to BSE he was an Executive Director in Morgan
Stanley India for 10 years. He was earlier with National
Stock Exchange and has managed various functions like
Trading Operations, Inspection and Investigation,
Futures and Options Clearing and Trading. He was also
the CEO of India Index Services Ltd. and Dotex
International Ltd
◼27 year experience in Capital markets, which includes
Securities Markets and General Insurance.
Shri Kersi TavadiaChief Information Officer
With BSE since 2010
◼Prior to joining BSE, employed with Log-in Utility and
InvestSmart Financial Services Limited
◼30 years of experience in the area of Application Systems/
IT Infrastructure development and management,
managing all aspects of IT operations in Financial Services,
Capital markets and manufacturing companies. He has
played a leading role in transforming BSE into the fastest
exchange in the country.
Shri Girish JoshiChief Trading Operations and Listing Sales
With BSE since 2010
◼He has worked with ICICI Bank Group for 10 years. At
ICICI Bank Group he worked in various areas like
ICICIDirect.com, Treasury Mid Office and in the area of
Regulatory Reporting and Monitoring at CFO office of
the Bank.
◼He was also one of the earliest core team members
who were involved in the set-up of National Stock
Exchange (“NSE”). During 7 years at NSE he worked in
Wholesale Debt Market and post trade functions.
Shri Sameer PatilChief Business Officer
With BSE since 2015
◼He is instrumental in setting up and responsible for
Business Development of INDIA INX at GIFT CITY IFSC.
Currently, INDIA INX has more than 90% market share.
◼He has about 21 years' of experience in financial sectors
like Commodities, Currency Derivatives, Indices etc and
has experience in Trading, Hedging Strategies, Product
Designing and Business Development.
BSE - CONFIDENTIAL
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About BSE – The Journey So Far
Key Milestones – The transformation over time
• Commodity Derivatives segment launched
• JV set up with Ebix Inc. to undertake insurance broking business
• JV with Power Trading Corporation and ICICI Bank to set up a power exchange
• Interest Rate Derivative Platform launched
• New Debt segment launched
• BSE becomes the fastest exchange in the world - median response speed of 6 micro-seconds
• Trading of Sovereign Gold Bonds commenced
• “BSE–BOND”- Electronic Book Mechanism launched
• India International Exchange (IFSC) Ltd. launched by Hon’ble Prime Minister of India, Shri Narendra Modi
• BSE’s becomes the first listed exchange in India
2015 2016 2017 2018-19
Over last few years, BSE has transformed itself from a conventional stock exchange to the 1st Universal Exchange in addition to setting up e-commerce initiatives successfully
1875 2005 2009 2012 2013
• BSE started as The Native Share & Stock Broker's Association
• BSE corporatized • Mutual Fund Platform (“Star MF”) launched
• BSE Small & Medium Enterprises (“BSE SME”) Platform launched
• Currency Derivatives launched
2013
2019-20
• BSE launches StAR MF mobile application for IFA’s –”IFA StARMF Mobility”
BSE - CONFIDENTIAL
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Index
About BSE1.
Business
Key Growth Drivers & Other Initiatives
Financial Highlights & Investor Information
2.
4.
3.
BSE - CONFIDENTIAL
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Business - Overview
Diversified Lines of Business
• Mutual Funds• Book-building services for
IPO• Offer to Buy• Offer to Sell• New Bond platform
• Equity• Debt• Equity Derivatives• Currency Derivatives• Commodity Derivatives• SME• Interest Rate Futures• SME Startups
• Datafeed• Index Services• Software Services• Training Services
• Equity Listing• Listing of Debt
Securities• Mutual Fund Listing
Trading &
ClearingDistribution
Services to
Corporates
Others
BSE - CONFIDENTIAL
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Business – Segment Update
Equity Cash - Performance
Revenues earned in this segment are subject to variation based on number and value of trades executed which are dependant on the economic cycle as well as the values of securities traded.
Inter-operability framework among clearing corporations fully operational with effect from July 15, 2019 in Equity Cash segment and July 29, 2019 in Equity Derivatives segment.
35,179
29,963
40,252
44,023
31,274 31,324
25,539
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9M FY19 9M FY20
Average Daily Turnover (₹ million)
485 419
558 600
458 335 355
- 112
616
842
351
279 157
485 531
1,174
1,442
809
614
512
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9M FY19 9M FY20
Transaction Charges Income (₹ million)
Normal Rate Special Rate
BSE - CONFIDENTIAL
54,919 76,461 74,704 81,959 1,31,954 1,38,414
1,11,917 25,272
37,751 56,356
1,00,932
1,70,753 1,75,644 1,78,670
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9M FY19 9M FY20
Average Daily Turnover (₹ million)
Currency Futures Currency Options
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Business – Segment Update
Currency Derivatives – Performance
0.89 1.16 1.11 1.27 1.88 1.98
1.59 0.41
0.58 0.84
1.58
2.45 2.53 2.54
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9M FY19 9M FY20
Average Daily Number of Contracts Traded (million)
Currency Futures Currency Options
CAGR 35%
• Consistent growth in turnover and number of contracts traded in currency derivatives segment.
• BSE’s market share in this segment for the quarter 31st
December, 2019 stands at 42% • Inter-operability framework among clearing corporations
fully operational with effect from August 5, 2019 in Currency Derivatives segment.
2
16
45
82 75
57 49
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9M FY19 9M FY20
Transaction Charges Income (₹ million)
CAGR 166%
80,191
114,212131,060
182,891
302,707CAGR 39%
314,058 290,587
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Business – Segment Update
Commodity Derivatives- Performance
276 Members admitted to trading in BSE’s Commodity segmentMembers
Commodity futures contracts includes Gold, Silver, Copper, Oman Crude Oil, Guar Gum, Guar Seed, Cotton,
Turmeric for trading
M-Share in Q3 FY20 @ 32% and
highest turnover of ₹ 2,000 million on 06th Nov’19
Guarseed
M-Share in Q3 FY20 @ 31% and
highest turnover of ₹ 1,856 million on 7th Mar’19
Cotton0
761
1,433
1,894
1,602
1
2,817
1,621
983
279
76
6
2,818
2,382 2,422
2,173
1,678
Q3 FY18-19 Q4 FY18-19 Q1 FY19-20 Q2 FY19-20 Q3 FY19-20
Average Daily Turnover (₹ million)
Agri Energy Bullion Base Metal
BSE - CONFIDENTIAL
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Business – Segment Update
BSE StAR Mutual Fund Platform – Introduction
E-platform - access from remote areas
24x7 order acceptance
Facilitates paperless SIP investment
Allows any day STP or SWP
Paperless bank mandateIFA StAR MF Mobility
mobile application
Unique overnight investment framework
Unified Payment Interface
Real-time investor registration & onboarding, Online MFD
registration
Allows multi-mode e-platform access
BSE StAR MFMutual Funds
E-platform for investment and redemption in
units of Mutual Funds and other
Financial Products on behalf of
clients
BSE - CONFIDENTIAL
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Business – Segment Update
BSE StAR Mutual Fund Platform – Reach & Coverage
40
9,82428.4
Million
Number of registered Investors
Mutual Fund Registered
Number of Schemes Available
Number of distributors who can transact
Number of cities/towns coveredOver 67555,594
4.41 6.32 6.89
8.66 9.73 10.64
12.18 12.81 14.29
Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
Transactions processed (Numbers in million)
CAGR 80%
1.17 1.50
1.76 2.11
2.34 2.57
2.83 3.09
3.41
Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
Active SIP/XSIP/ISIP (Numbers in million)
CAGR 71%
BSE - CONFIDENTIAL
Data as on 31st December, 2019
Business – Segment Update
BSE Star Mutual Fund Platform - Performance
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Steady non-linear increase in incomeExponential growth in number of orders
• Strong growth in revenue likely to continue over next few years aided by expected growth in distribution network, household savings and economic & demographical factors
• BSE Star MF becomes part of India’s largest online MF distribution platform at zero cost.
Orders Processed :~ 4.95 million (December 2019)936 mutual fund distributors registered during Q3FY20
6,534 13,280
26,143
69,229
1,45,214 1,36,255
2,14,585
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9M FY19 9M FY20
Average Daily Number of Orders
57%
Quarterly Growth:Mutual fund distributors 55% (Y-o-Y) Orders Processed 47% (Y-o-Y)
Value of orders processed 37% (Y-o-Y)
BSE - CONFIDENTIAL
CAGR 117%
99
290
207
328
FY17-18 FY18-19 9M FY19 9M FY20
Mutual Fund Revenue
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Business – Segment Update
Services to Corporates - Performance
55 112
143
331
150 101 118
41
53 44
100
102
60 45
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9M FY19 9M FY20
Book Building & Other Services (₹ million)
Book Building Fees Other Services Fees
Listing income stable with increasing bias due to incremental listings on the Exchange and fees increased during current financial year.
Other listing income subject to mild variation year on year based on increase in economic factors, number of new listings, corporate actions, etc.
626
1,013 1,042
1,280 1,461
1,114 1,194
332
433 340
496
420
324 193
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9M FY19 9M FY20
Listing Fees (₹ million)
Annual Listing Fee Listing processing and Other Listing fees
CAGR 18%
CAGR 27%
958
1,4461,382
1,7761,881
1,438 1,387
96
165187
431
252
161 163
BSE - CONFIDENTIAL
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Business – Segment Update
India International Exchange IFSC – IntroductionBSE - CONFIDENTIAL
Asset Classes & Contracts
Trading Hours
Global Access
• BSE’s India INX launches Global Access with connectivity to CME Group Exchanges, LME,ICE US & Europe, Eurex & Euronext N.V.
• Equity Index Derivatives: Sensex and India 50
• Indian Stock Futures : 144 stocks including Reliance Industries Limited, HDFC Bank Limited, Axis Bank Limited, Infosys Limited, Tata Consultancy Services Limited, Maruti Suzuki India Limited, Tata Motors Limited, ICICI Bank Limited, Larsen & Toubro Limited and State Bank of India Limited
• Commodity Futures : Gold, Gold KG, Silver, Copper, WTI Crude, BRENT Crude
• Commodity Options : Gold
• Currency Derivatives: EUR USD, GBP USD and JPY USD
• Debt Securities: Masala Bonds, Foreign Currency Denominated Bonds
• Exchange Daily Trading Hours• 22.00 Hours• 04:30:00 hours to 17:00:00 hours and 17:00:01 hours to 02:30:00 hours
(Indian Standard Time)
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Business – Segment Update
India International Exchange IFSC – Performance
Numbers Value
MTN Programme Established
11 USD 46,574 million
Numbers Value
Bonds Listed
42 USD 18,420 million
Marketshare
Fund Raising / Listing
During Q3 FY20, approx. 23% of Indian issuers of Debt Securities in the international markets have listed on India INX’s Global Securities Market.
MTN Programme
@100%
Bonds Listed
#98%
Derivatives Trading
76%
@100% of MTN established in IFSC are established with INDIA INX
#98% of the bonds listed in IFSC are listed on INDIA INX
BSE - CONFIDENTIAL
India INX is the dominant IFSC Exchange in GIFT city with market share of 76% in derivatives trading and 98% in bond listing.
Highest Volume in a day4,05,544 Traded contractson 25th July 2019
Highest Turnover in a day$ 4.91 Billion on 25th July 2019
Business - Segment Update
India International Exchange IFSC
18
35,256 37,573
53,743
1,09,334
1,36,649 1,39,671
16,864 15,093
9,209
10,947
12,232 9,869
52,120 52,666
62,952
1,20,281
1,48,881 1,49,540
Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
Total Turnover (in USD Million)
Index Derivatives Commodity Derivatives
2.97 3.36 4.64
8.89
11.55 11.19
0.45 0.38
0.22
0.26
0.26 0.21
3.42 3.74
4.86
9.15
11.81 11.39
Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
Number of Contracts Traded (in Million)
Index Derivatives Commodity Derivatives
CAGR 162% CAGR 132%
ICICI Bank has invested - 7.71% in India INX- 9.90% in India ICC
BSE - CONFIDENTIAL
*Data as on December 2019# Data for the month of December 2019
Source: BSE/WFE 19
Business
Global Rankings
7th largest globally with24.8 million#
7th highestglobally with $ 2.17 trillion*
Market Capitalization
Electronic Book Trades
Number of Listed Companies
Currency Options Traded Volume
Currency Futures Traded Volume
Highest globally with5,519*
2nd Largest globally with 46.56 million#
2nd largest globally with 32.85 million#
BSE - CONFIDENTIAL
All Marketshare for Q3 FY201 Marketshare in Mutual Fund StAR Platform based on the value of purchase / redemption orders executed during Q3 FY202 Marketshare in SME Segment represents number of companies listed in SME segment during Q3 FY203 As on December 31, 2019
Red Ocean Businesses Blue Ocean Businesses
Market leadership in Blue Ocean Businesses
Power Exchange jointly promoted with Power Trading Corporation & ICICI Bank*
BSE Ebix Insurance Broking Private Limited, has successfully Beta Launched on February
07, 2020
Established leader in Listing related Business.Good marketshare in other businesses except Equity Cash
74%
42%
17%
36%
6%
Companies/Securities Listed
CurrencyDerivatives
Interest RateDerivatives
Debt/ FixedIncome
Equity Cash
69%60% 62%
76%
StAR MF SME BSE Bond India INX
Business
Marketshare
20*Subject to Regulatory Approvals
Commodity Derivatives includes Gold, Silver, Copper, Oman Crude Oil, Guar Gum, Guar
Seed, Cotton, Turmeric for trading
BSE - CONFIDENTIAL
1 2
3
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Index
About BSE1.
Business
Key Growth Drivers & Other Initiatives
Financial Highlights & Investor Information
2.
4.
3.
BSE - CONFIDENTIAL
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Mutual Fund
01 02 03 04
Inter-operability of Clearing Corporations
• Can lead to increase in arbitrage turnover due to clearing of all trades by any one clearing corporation
• Can lead to increase in turnover due to implementation of best price execution software implementation by various brokers
• Can lead to turnover in equity derivatives also.
• Fully Operational as per following dates- Equity - 15th July 2019- Equity Derivatives - 29th July 2019- Currency Derivatives – 05th August 2019
International Exchange
• Several amendments made vide The Finance (No. 2) Act, 2019 in tax laws to encourage foreign participation in International Exchanges at IFSC
• Unified Regulator to be set up, The International Financial Services Centres Authority Bill, 2019 passed by Parliament
• SEBI allowed IFSC Exchanges to launch the currency futures and options contracts involving Indian rupee.
• Savings in cost and convenience• Strong network of inter-
mediaries• Good network connectivity
across country • Increasing household incomes • Increasing financial savings
Key Growth Drivers & Other Initiatives
Key Growth Drivers
E-platform Services
• Expansion of services from Current platforms for providing e-platform services like book-building for IPO, Offer to Buy, Offer to Sell, New Bond platform, etc.
BSE - CONFIDENTIAL
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Insurance Broking Power Exchange Commodity Derivatives BSE Bond Platform
• Set up JV named BSE Ebix Insurance Broking Private Limited with Ebix to provide insurance broking services
• Approval received for composite broking licence from Insurance Regulatory Development Authority of India
• Successfully Beta Launched on February 07, 2020
• Pranurja Solutions Limited incorporated to set up a power exchange jointly with Power Trading Corporation and ICICI Bank.
• Approval for grant of license for the power exchange from Central Electricity Regulatory Commission under progress.
• Launched Commodity Derivatives from October 1, 2018
• Commodities futures available for trading includes Gold, Silver, Copper, Oman Crude Oil, Guar Gum, Guar Seed, Cotton and Turmeric.
• Over ₹ 905 billion of privately placed debt was raised on BSE BOND platform through 90 issues in Q3 FY20
• 189 issuers successfully raised over ₹ 2.39 lakh crore with 61% market share on Bond Platform during the period April 2019 to December 2019.
Key Growth Drivers & Other Initiatives
Other InitiativesBSE - CONFIDENTIAL
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Index
About BSE1.
Business
Key Growth Drivers & Other Initiatives
Financial Highlights & Investor Information
2.
4.
3.
BSE - CONFIDENTIAL
Transaction Charges◼ To an extent linked to
Market Activity◼ Linked to market activity levels and household savings and investments
Treasury Income on Clearing and Settlement Funds
◼ Linked to Market Activity to an Extent
◼ Linked to interest rates and, to an extent, market activity since that would lead to more margin being deposited by members
Other Securities Services ◼ Recurring ◼ Primarily consists of charges recovered from members for network connectivity
Services to Corporates ◼ Recurring
◼ Mostly derived from listing income that is not impacted by market activity
◼ Dependent on number of listed entities and hence is a recurring revenue stream
◼ Potential for increase if amount charged is increased
Data Dissemination Fees ◼ Recurring◼ Impacted primarily due to level of subscriptions and revision in pricing policies
◼ Contributes only 4-5% in India compared to 10-25% in developed markets
Income From Investments and Deposits
◼ Recurring ◼ Linked to investment yields
Other Income ◼ Recurring ◼ Mostly derived from rent and training institute etc., which are stable sources of income
• Multiple contact points with members and market participants provides the ability to generate revenue from multiple levels of the business
1
2
3
4
5
6
7
Linked to Market Activity Recurring
Primary Trading Clearing & Settlement Distribution
25
Financial Highlights & Investor Information
Integrated Business Model BSE - CONFIDENTIAL
Sr. No. ParticularsDec’19Quarter
Sep’19Quarter
Dec’18Quarter
9M FY 20 9M FY 19FY
2018-19
1. Transaction Charges 263 270 256 880 852 1,139
2. Treasury Income on Clearing and Settlement Funds 43 56 70 172 235 307
3. Other Securities Services 82 67 55 195 171 269
4. Securities Services (1+2+3) 388 393 381 1,247 1,258 1,715
5. Services to Corporates 545 516 496 1,554 1,601 2,136
6. Other Operating Income 166 180 170 508 487 652
7. Revenue from Operations (4+5+6) 1,099 1,089 1,047 3,309 3,346 4,503
8. Income From Investments and Deposits 340 451 685 1,282 1,497 2,022
9. Other Income 48 55 39 149 127 162
10. Total Income (7+8+9) 1,487 1,595 1,771 4,740 4,970 6,687
11. Employee Expenses 369 392 357 1,136 1,037 1,392
12. Technology Cost & Technology Program 294 289 287 882 857 1,134
13. Admin & Other Expenses 491 465 448 1,349 1,185 1,685
14. Total Operating Expenses (11+12+13) 1,154 1,146 1,092 3,367 3,079 4,211
(₹ in million)
Financial Highlights & Investor Information
Consolidated Profit & Loss
26
BSE - CONFIDENTIAL
* Non Recurring Revenue items includes gain on part stake sale of CDSL, reversals of certain expense provision for earlier years and Interest on tax refunds.@ Non Recurring Expenses includes Expense towards settlement of service tax matters, provision made for investment in IL&FS Group’s Secured Debentures, liquidity enhancement scheme expense andvoluntary retirement scheme expense.
Sr. No. ParticularsDec’19Quarter
Sep’19Quarter
Dec’18Quarter
9M FY 20 9M FY 19FY
2018-19
15. EBITDA (10-14) 333 449 679 1,373 1,891 2,476
16. EBITDA Margin (15/10 in %) 22% 28% 38% 29% 38% 37%
17. Depreciation & Amortization 132 125 129 377 364 511
18. Finance Cost 5 4 2 13 7 9
19. Non Recurring Revenue * 320 1 0 322 83 188
20. Non Recurring / Exceptional Expenses @ 109 67 98 213 196 260
21.Profit Before Tax & Non-controlling Interest/Associates (15-17-18+19-20)
407 254 450 1,092 1,407 1,884
22. Share of profit from Associates 57 73 70 200 205 292
23. Profit Before Tax (21+22) 464 327 520 1,292 1,612 2,176
24. Tax Expenses / Non-controlling Interest 8 -40 19 56 189 234
25. Net Profit From Continuing Operations (23-24) 456 367 501 1,236 1,423 1,942
26. Net Profit Margin (25/10 in %) 31% 23% 28% 26% 29% 29%
27. Profit From Discontinued Operation 0 0 0 0 51 51
28. Net Profit from Total Operation (25+27) 456 367 501 1,236 1,474 1,993
(₹ in million)
Financial Highlights & Investor Information
Consolidated Profit & Loss (cont’d)
27
BSE - CONFIDENTIAL
Sr. No. ParticularsDec’19Quarter
Sep’19Quarter
Dec’18Quarter
9M FY 20 9M FY 19FY
2018-19
1. Securities Services 310 311 302 1,008 997 1,363
2. Services to Corporates 544 515 495 1,551 1,599 2,133
3. Data Dissemination Fees 77 79 78 233 225 302
4. Revenue from Operations (1+2+3) 931 905 875 2,792 2,821 3,798
5. Income From Investments and Deposits 266 477 645 1,163 1,507 1,958
6. Other Income 52 60 43 160 139 181
7. Total Income (4+5+6) 1,249 1,442 1,563 4,115 4,467 5,937
8. Employee Expenses 226 242 214 708 633 848
9. Technology Cost & Technology Program 328 326 328 988 966 1,265
10. Admin & Other Expenses 430 406 312 1,173 907 1,291
11. Total Operating Expenses (8+9+10) 984 974 854 2,869 2,506 3,404
(₹ in million)
Financial Highlights & Investor Information
Standalone Profit & Loss
28
BSE - CONFIDENTIAL
Sr. No. ParticularsDec’19Quarter
Sep’19Quarter
Dec’18Quarter
9M FY 20 9M FY 19FY
2018-19
11. Total Operating Expenses (8+9+10) 984 974 854 2,869 2,506 3,404
12. EBITDA (7-11) 265 468 709 1,246 1,961 2,533
13. EBITDA Margin (12/7 in %) 21% 32% 45% 30% 44% 43%
14. Depreciation & Amortization 111 108 111 321 311 440
15.Non Recurring Revenue / Exceptional Income*
916 1 0 918 133 238
16. Non Recurring / Exceptional Expenses @ 69 27 66 95 105 145
17. Profit Before Tax (12-14+15-16) 1,001 334 532 1,748 1,678 2,186
18. Tax Expenses 16 -58 8 27 106 175
19. Net Profit After Tax (17-18) 985 392 524 1,721 1,572 2,011
20. Net Profit Margin (19/7 in %) 79% 27% 34% 42% 35% 34%
* Non Recurring Revenue items includes gain on part stake sale of CDSL, reversals of certain expense provision for earlier years, Interest on tax refunds and receipt of withheld proceeds of equity shares of CDSL offered inits IPO.@ Non Recurring Expenses includes expense towards settlement of service tax matters, provision made for investment in IL&FS Group’s Secured Debentures, impairment of certain Equity Investments, liquidityenhancement scheme expense and voluntary retirement scheme expense.
(₹ in million)
Financial Highlights & Investor Information
Standalone Profit & Loss (cont’d)
29
BSE - CONFIDENTIAL
13.86
24.16
36.39
45.51
38.08
29.7834.29
FY14-15 FY15-16 FY16-17 FY17-18# FY18-19 9M FY19 9M FY20
6,248 6,701
6,183 6,989 6,875
5,054 4,742
1,297 1,329 2,206 2,148 1,942
1,423 1,236
21% 20% 36% 31% 28% 28% 26%
FY14-15 FY15-16 FY16-17 FY17-18* FY18-19* 9MFY19 9MFY20
Total Revenue Net Profit Net Margin
Consolidated Key Performance Indicators (₹ in million)
* Net profit from continuing operation
# Restated EPS
Financial Highlights & Investor Information
Financial Overview
32
23.77 24.35
40.41 39.37 36.78
26.96 24.41
FY14-15 FY15-16 FY16-17 FY17-18# FY18-19 9M FY19 9M FY20
4,392 5,159 5,509
6,510 6,124
4,549 4,116
1,014 1,061 1,986
5,640
2,011 1,572 1,721
23% 21% 36% 87% 33% 35% 42%
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9MFY19 9MFY20
Total Revenue Net Profit Net Margin
(₹ in million)
# Restated EPS
Consolidated Earnings per share (₹) [Continuing operations] Standalone Earnings per share (₹)
Standalone Key Performance Indicators
BSE - CONFIDENTIAL
Figures as per restated IGAAP financials for FY12-13 to FY14-15 and Ind-AS financials for FY15-16 onwards# Dividend pay-out ratio is calculated based on Standalone Profit
8.010.0 15.0
28.036.0
30.0
66%87%
74%93% 95% 97%
-10%
40%
90%
140%
-
20
40
60
80
100
FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19
Dividend per share (₹) & Pay-out Ratio
Dividend Per Share Dividend Payout Ratio
24,609 25,22926,312
30,80629,357
24,458
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9M FY20
Consolidated Net-worth (₹ million)
Financial Highlights & Investor Information
Financial Overview (cont’d)
33
22,033 22,536 24,290
27,743 26,262
21,630
FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 9M FY20
Standalone Net-worth (₹ million)
BSE - CONFIDENTIAL
Banks*4%
Financial Institution
6%
FDI / FII / FPI22%
Mutual Funds2%
Others50% Trading Members
16%
SHAREHOLDING PATTERN
Business
Shareholding Pattern
Paid up Capital ₹ 90.04 million | Face Value per share ₹ 2/- each
*as per BENPOS as on December 31, 2019
SOME KEY SHAREHOLDERS*
Life Insurance Corporation of India 5.61%
Deutsche Boerse AG 4.41%
State Bank of India 2.39%
Siddharth Balachandran 1.93%
Acacia Banyan Partners Limited 1.74%
Jupiter Asset Management 1.68%
Caldwell India Holdings Inc. 1.49%
Akshay Vasantlal Mehta 1.49%
MSPL Limited 1.33%
S Gopalkrishnan 1.18%
Market data as at January 31, 2020
MARKET DATA
Market Capitalization (₹ Mn) 24,015.96
Price (₹) 533.40
No. of Shares Outstanding 4,50,24,297
Face Value (₹) 2.00
Avg. Qtrly Trading Volume (₹ Mn) 37.85
Avg. Qtrly Trading Volume (Mn shares) 0.07
52 week High-Low (₹) 648.00 – 446.20
*Banks includes bank which are trading members
34
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Closing Price
Closing Price
BSE - CONFIDENTIAL
THANK YOU
INVESTOR RELATIONS CONTACT :
Yogesh Joshi Head – Investor Relations+91 22 2272 8810 [emailprotected]
BSE - CONFIDENTIAL