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MSTC Limited Annual Report 2019
60803_rns_2019-05-30_0b1ba5ac-3268-4e8e-a538-729c3acaecc3.pdf
Annual Report
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Kolkata, May 30th, 2019
Result update
MSTC Limited announced its audited consolidated and standalone financial results for the Quarter and Financial year ended March 31, 2019. Key highlights of the same are as under:
| Particulars | Consolidated | ||
|---|---|---|---|
| FY19 | FY18 | % chg. | |
| Total value of goods traded through MSTC eco-system (INR bn) | 1,112.7 | 820.1 | 35.7% |
| Total Revenue | 33,403.2 | 27,931.5 | 19.6% |
| of which Marketing | 27,482.8 | 22,627.5 | 21.5% |
| of which e-commerce | 2,133.3 | 1,900.6 | 12.2% |
| of which Scrap recovery and allied jobs | 3,782.2 | 3,398.3 | 11.3% |
| of which Others (unallocated) | 5.0 | 5.1 | (1.8%) |
| 1EBITDA (pre-provisioning) | 3,770.8 | 3,246.1 | 16.2% |
| Provisions and write-offs (net of provisions written-back) | 5,391.3 | 1,264.0 | 326.5% |
| Profit/ (Loss) before Tax | (2,374.5) | 1,171.5 | NA |
| Profit/ (Loss) for the period | (3,071.0) | 772.2 | NA |
| EPS (in INR) | (43.6) | 11.0 | NA |
| Cash Profit2 | 2,467.1 | 2,160.1 | 14.2% |
(in INR million unless otherwise specified)
1 EBITDA (pre-provisioning) refers to EBITDA less provisions for the period
2 Cash Profit is computed as EBITDA (pre-provisions) less expenses towards Interest and Tax
Key highlights:
Continued strength in e-commerce business:
Company crossed INR 1,100bn in terms of value of goods transacted through its trading and ecommerce verticals. This is a ~36% growth over the value of goods traded in FY18. The growth in ecommerce business was higher at ~43% driven by ~60% growth in value of goods transacted through e-procurement and ~55% growth in value of goods transacted through e-sales vertical.
Key business developments:
- 1. Entered into agreement with Reliance Industries Ltd for providing e-commerce service for disposal of scrap etc; intends to expand into other group companies;
- 2. Shri V P Haran and Shri G C Chaturvedi has been appointed as Independent External Monitor to MSTC;
- 3. Developed e-tendering software for Indian Oil Corporation to facilitate import of petroleum products;
- 4. Entered into e-procurement agreement with Kerala State Electricity Board;
- 5. Entered into e-procurement agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam;
- 6. Entered into agreements with Assam forest department for minor mineral blocks;
- 7. Conducted auctions for Hyderabad Metropolitan Development Authority (HMDA) for 67 open plots netting HMDA INR 6,770mn;
- 8. Assisted various banks in e-auction of their NPAs; potential to become a large business opportunity
Bad debts and recoveries:
During FY19, MSTC provided for doubtful receivables of ~INR 4,320mn and wrote off ~INR 1,100mn. These receivables principally pertain to period prior to FY16 and in restated financials included in the Prospectus for the IPO, a large part of the same had been provided for in prior periods.
The Company has initiated proceedings at various forums to recover such doubtful receivables and management remains hopeful of atleast partial recovery.
Outlook
Management anticipates strong growth to continue in e-commerce business backed by continuity in government policies, thrust on transparency and increased penetration across private sector clients.
Equirus Securities
Invites you for a conference call
With the management of
MSTC Ltd
To discuss the company's results for 4QFY19
On
31st May, 2019 (Friday) at 11:00 am (IST)
Management Team:
Mr. B.B. Singh – Chairman and Managing Director
Ms. Bhanu Kumar – Director Commercial
Mr. Subrata Sarkar – CFO and Director Finance
Dial in numbers
Universal Access Number: +91 22 6280 1224
Toll Free Number: +91 22 7115 8125
Local Access: +91-7045671221
International Toll Free Numbers International Toll Numbers
| USA: | 18667462133 | USA: | 13233868721 |
|---|---|---|---|
| UK: | 08081011573 | UK: | 442034785524 |
| Singapore: | 8001012045 | Singapore: | 6531575746 |
| Hong Kong: | 800964448 | Hong Kong: | 85230186877 |
| THREIRINDIRI TOILINDIDES | |
|---|---|
| USA: | 13233868721 |
| UK: | 442034785524 |
| Singapore: | 6531575746 |
| Hong Kong: 85230186877 |
For further information, please contact:
Abhishek Shindadkar Subham Sinha
+91-22-43320643 +91-22-43320631
[email protected] [email protected]
Disclaimer
This presentation and the accompanying slides (the "Presentation"), which have been prepared by MSTC Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall notform the basis or be relied on in connection with any contractor binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expresslyexcluded.CertainmattersdiscussedinthisPresentationmaycontainstatementsregardingtheCompany'smarketopportunityandbusinessprospectsthatareindividuallyandcollectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptionsthataredifficulttopredict.Theserisksanduncertaintiesinclude,butarenotlimitedto,theperformanceoftheIndianeconomyandoftheeconomiesofvariousinternationalmarkets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks,as wellasotherrisks.
TheCompany'sactualresults,levelsofactivity,performanceorachievementscoulddiffermateriallyandadverselyfromresultsexpressedinorimpliedbythisPresentation.TheCompanyassumesno obligation to update anyforward-lookinginformation containedin thisPresentation.Anyforward-lookingstatementsandprojectionsmade bythirdpartiesincludedin this PresentationarenotadoptedbytheCompanyandtheCompanyisnotresponsibleforsuchthirdpartystatementsandprojections.
MSTC Limited
Key Highlights
| ilOtperaona | |
|---|---|
| fPerormance |
Financial Performance(Consolidated)
Business update
- During the year, the Company crossed INR 1,100bn in terms of value of goods transacted through its marketing and e-commerce verticals which is ~36% growth over the value of goods traded in FY18; growth in value of goods transacted through its e-commerce vertical was higher at ~43%.
- Revenues of INR 33,403.2mn in FY19 vis-à-vis revenues of INR27,931.5mn in FY18; growth of ~20%
- Pre-provision PBT of INR 3,016.8mn in FY19 vis-à-vis INR 2,435.5mn in FY18; growth of 23.9%
- Cash profits in FY19 of INR2,467.1mn vis-à-vis cash profits of INR2,160.1mn in FY18; growth of ~14%
- Entered into agreement with Reliance Industries Ltd for providing e-commerce service for disposal of scrap etc; intends to expand business to other private sector companies;
- Developed e-tendering software for Indian Oil Corporation (IOCL) to facilitate import and export of petroleum products;
- Entered into e-procurement agreement with Kerala State Electricity Board;
- Work order received from Uttar Pradesh Rajya Vidyut Utpadan Nigam for e-procurement services;
- Entered into agreement with Assam forest department for minor mineral blocks;
- Conducted auctions for Hyderabad Metropolitan Development Authority (HMDA) for 67 open plots netting HMDA INR 6,770mn;
- Shri V P Haran and Shri G C Chaturvedi has been appointed as Independent External Monitor to MSTC.
Performance Analysis
Value of goods transacted – FY19 (INR bn) (Standalone)
E-commerce business grew by 43% led by ~60% growth in eprocurement, ~55% growth in e-sale, ~27% growth in value of scrap traded while value of coal and iron-ore traded reduced marginally and value of goods transacted in marketing reduced by ~18%
MSTC Limited
Net Revenues – FY19 (INR mn) (Consolidated)
Other key financial parameters (INR mn)(Consolidated)
Pre-provisioning profits and Cash profits
| l()PiINRtarcarsmnu | FY18 | FY19 |
|---|---|---|
| fibf(didfiil)PTttroeoreaxasperauenancas | 51,171. | (5)2,374 |
| ldbkLPiiiittessrosonsnoongerreqrerenac:vuw | 4,718.2 | 29.6 |
| ddddbffABitttaeswreno: | 54,94.1 | 1,100.8 |
| ddllfddbfld/bAABDADttowanceoraanouuvanceses: | 1,388.1 | 4,320.0 |
| iiiPPBTre-provsonng | 2,35.54 | 3,016.8 |
| ddADiiteprecaon: | 123.9 | 146.9 |
| fhdLTitessaxesorepero: | 399.3 | 696.6 |
| hfiCPtasro | 2,160.1 | 2,6147. |
Provision and write-off related expenses
| l()PiINRtarcuarsmn | FY19 | dlTiRFiittttreamennesaenancas |
|---|---|---|
| fdPiiiirovsonsorprorperos | ||
| dhklkdAMLiiiittuneasme | 1,100.8 | ldfddARFiitttreayacorenesaen. |
| lddCSPLiitttoncaseeanowerme | 1,908.4 | ldfddARFiitttreayacorenesaen. |
| bldPiiiiiiiFY12ttttrovsonperanngorecevaesousanngsnce | 1,739.2 | ldfddAiRFitttreayacorenesaen. |
| lblkd.GCLtoaoe | 179.8 | ldfddAiRFitttreayacorenesaen. |
| ld.JiBjiLtaaa | 5.317 | |
| hSl&d.TPLtttoporeesoerww | 11.87 | |
| lfblfdTiiiiFY19iiitoaprovsonngnorrecevaesromprorperos | 5,420.8 | |
| blfPiiiiiFY19ttrosonperanngoreceaesorvv | lNi | |
| lTiiitoaprosonngv | 5,420.8 |
Developments during the period
Key developments during the period
-
- Entered into agreement with Reliance Industries Ltd for providing e-commerce service for disposal of scrap etc; intends to expand business to other private sector companies;
- -Developed e-tendering software for Indian Oil Corporation (IOCL) to facilitate import and export of petroleum products;
- -Entered into e-procurement agreement with Kerala State Electricity Board;
- -Work order received from Uttar Pradesh Rajya Vidyut Utpadan Nigam for e-procurement services;
- -Entered into agreement with Assam forest department for minor mineral blocks;
- -Partnered Mumbai Traffic Police for 'Operation Khatara' – drive to dispose off abandoned vehicles in Mumbai;
- -Opened new office at Dehradun, Uttarakhand
- -Conducted auctions for Hyderabad Metropolitan Development Authority (HMDA) for 67 open plots netting HMDA INR 6,770mn;
- -Shri V P Haran and Shri G C Chaturvedi has been appointed as Independent External Monitor (IEM) to MSTC Limited;
-
- MSTC acted as service provider for the inspection & e-auction of rough diamonds of NMDC for about 22,400 Carats of rough diamonds;
-
- E-auction of various agro commodities through its e-Rakam portal viz. Bajra, Makhana, pulses, onion, groundnuts etc. and large quantities of pulses and groundnut sold for NAFED.
MSTC LimitedA leading B2B e-Commerce player in India
Summary financialsConsolidated
Summary P&L Statement
| daloStanne | ldadCoitenso | |||
|---|---|---|---|---|
| Paicula(INR)trrsmn | Q4FY18 | Q4FY19 | FY18 | FY19 |
| froReiotvenuemoperans | 8,526.2 | 37,44.4 | 22,6504. | 32,920.0 |
| OheIntrcome | 4,922.5 | 89.2 | 5,277.5 | 483.2 |
| lToRetavenue | 13,448.7 | 7,433.7 | 527,931. | 33,403.2 |
| Expenses | ||||
| hafk-de/lblesPuSin-TOpioCo&Sptotrcses ocraeranansumaares | 7,221.3 | 56,40.1 | 5,1192.8 | 5,2914.3 |
| hak offhed gdsk-d sk-deCininisinintoto-trngesscoowor-progressanca, | - | - | 707.4 | - |
| loybefEmit epeenexpense | 16.57 | 158.4 | 2,114.9 | 1,690.1 |
| Fintsancecos | 172.9 | 80.4 | 673.6 | 578.0 |
| Ded aiaioisaiotttprecn anmorn expense | 3.0 | 3.4 | 123.9 | 146.9 |
| d wffsPrisioit-oovnsanr | 5,982.2 | 5487. | 5,982.2 | 5,420.8 |
| heOtr expenses | 55.18 | 120.4 | 51,92.1 | 51,998. |
| lToExtapenses | 13,711.7 | 7,390.3 | 26,746.9 | 5,3748.6 |
| haf pf/(lo)fSiJinVetttureorossoonres | - | - | ()13.1 | ()29.1 |
| Prfi/(Lo)befottaossrex | (263.0) | 43.4 | 1,171.5 | (2,374.5) |
| Tax expense | (115.6) | (192.7) | 399.3 | 696.6 |
| f/()fohedPriLoiottossrper | ()147.4 | 236.1 | 772.2 | ()3,071.0 |
Summary Balance Sheet (consolidated)
| icula()PaINRtrrsmn | FY18 | FY19 |
|---|---|---|
| ASSETS | ||
| NoCuAsttsn-rrense | ||
| landPrPEqipty,t atopernmenu | 677.1 | 750.6 |
| CalkiWinPrtaporogress | 104.4 | 231.8 |
| bleIniAstatsngse | 13.3 | 11.5 |
| bs/IninSuJVsAsiatmttevesensocs, | 88.0 | 138.8 |
| FinialAstsancse | ||
| NoCuTaAsttsn-rrensex | 51.57 | 582.4 |
| DeferdTaAs()tstrexsene | 5.2,818 | 5.2,613 |
| OheNoCuAstttsrn-rrense | 104.0 | 130.8 |
| lToNoCuAstattsn-rrense | 4,934.1 | 4,733.7 |
| CuAsttsrrense | ||
| Iniestovenr | 41.6 | 60.4 |
| FlAsiniatsancse | ||
| TrdeReivablesace | 5.39,813 | 18,697.3 |
| h adhlenCaCaEqivatssnsu | 1,758.6 | 962.2 |
| OheBakBalantrnces | 3,789.4 | 3,204.7 |
| helOFiniaAsttsrancse | 517.7 | 483.0 |
| OheCuAstttsrrrense | 143.6 | 5.100 |
| lasfd aldfoleAsCiieHeSatssessr | 5.29 | 30.8 |
| lToCuAstattsrrense | 46,092.2 | 523,43.4 |
| TOTALASSETS | 51,026.3 | 28,277.1 |
| Paicula(INR)trrsmn | FY18 | FY19 |
|---|---|---|
| QEUITY | ||
| halEqiSCaitytaurep | 352.0 | 704.0 |
| heOEqittyru | 6,957.3 | 3,175.7 |
| lToEqitatyu | 309.37, | 3,89.77 |
| NoCuLiabiliiettn-rrens | ||
| lblFiniaLiaiiiestanc | 12.0 | 19.4 |
| Prisioovns | 893.3 | 706.2 |
| OheCublNoLiaiiiestttrn-rren | 73.7 | 80.6 |
| lCuiabiliieToNoLtattn-rrens | 979.1 | 806.2 |
| blCuLiaiiiettrrens | ||
| lblFiniaLiaiiiestanc | ||
| Boinrrowgs | 7,661.8 | 6,137.1 |
| deblesTrPaaya | 26,038.2 | 559,23. |
| helblOFiniaLiaiiiesttranc | 558,6.9 | 7,329.6 |
| OheCuLbliaiiiestttrrren | 5.268 | 5284. |
| Prisioovns | 212.7 | 5314. |
| Lbldlyd wh aiaiiiesireiaitttettscassocsselasfd aheldfoleiiecssr sa | 52. | 2.0 |
| lblToCuLiaiiietattrrens | 42,737.9 | 523,91.2 |
| TOTALEQUITYANDLIABILITIES | 51,026.3 | 28,277.1 |
Summary Cash Flow statement (Consolidated)
| Paicula(INR)trrsmn | FY18 | FY19 |
|---|---|---|
| CASHFLOWFROMOPERATINGACTIVITIES | ||
| f/()foPriLoBeTatossrex | 51,171. | (5)2,374. |
| /f nDeiaioAmisaioAstttttsprecnorn oon-currense | 123.9 | 146.9 |
| FinCotances | 673.6 | 578.0 |
| dfloInIniseini&tettrescome recognpross | ()267.3 | (5)424. |
| dkPrisioLoReireWiBatteovn nongerqurnc | ()4,718.2 | ()29.6 |
| dbffBaDeWiOttten | 54,94.1 | 1,100.8 |
| fod adbfuldv/bPrisioBaDoADettsovnrnancesu | 1,388.1 | 4,320.0 |
| blkLiaiiiBatyttewrnc | ()281.7 | - |
| fbefokl chaOpiniWinCaitttaeragproreorgpnges | 52,683. | 3,317.1 |
| dfoklAjinitmtstausenr worgcap | (5.)2,000 | ()1,846.0 |
| d(ffud)DireTaPaiNeRett ocxesn | ()466.6 | ()487.0 |
| hfriniviie()NeOpAcAt ctttasomerags | 211.9 | 984.1 |
| CASOOSGACSHFLWFRMINVETINTIVITIE | ||
| PafoPrPlan&Eqiptty,ttymenroperumen | (262.9) | (392.2) |
| dsfrodl oflan&PrispPrPEqiptyttoceemosaoperumen | 284. | 6.34 |
| InInFdDeixeitmttsvesenpos | 932.3 | 584.7 |
| InJVeinintmtttuvesenonre | (61.7) | (50.8) |
| Inivedtet rresece | 208.2 | 439.5 |
| h(d)()NeinIninAciviieBt ctttasusevesgs | 840.7 | 627.4 |
| CASHFLOWFROMFINANCINGACTIVITIES | ||
| dsfrohoboPrSintteoceemrrmrrowgs | 30.3 | (5.)1,274 |
| dInPaitetres | ()673.9 | (5)78.6 |
| dedd(luddded)DiviPaiininivitancgx onn | ()300.8 | ()314.0 |
| hd()NeinFininAciviieCt cttasuseancgs | ()944.4 | ()2,168.1 |
| /(de)hhle()NeininCa&CaivA+B+Cttscreasecreasessequan | 108.2 | (555)6. |
MSTC Limited
Thank You
- Subrata Sarkar
- +91-033-2281-3088
- www.mstcindia.co.in
