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IL&FS Investment Managers Ltd.

BSE: 511208 Sector: Financials
NSE: IVC ISIN Code: INE050B01023
BSE LIVE 15:40 | 20 Nov 20.15 0
(0.00%)
OPEN

20.15

HIGH

20.75

LOW

19.80

NSE 15:40 | 20 Nov 20.20 0.05
(0.25%)
OPEN

20.30

HIGH

20.80

LOW

19.75

OPEN 20.15
PREVIOUS CLOSE 20.15
VOLUME 264896
52-Week high 23.45
52-Week low 13.20
P/E 59.26
Mkt Cap.(Rs cr) 633
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.15
CLOSE 20.15
VOLUME 264896
52-Week high 23.45
52-Week low 13.20
P/E 59.26
Mkt Cap.(Rs cr) 633
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

IL&FS Investment Managers Ltd. (IVC) - Chairman Speech

Company chairman speech

Dear Shareholders

The past couple of years were challenging for the Indian economy due to generalslowdown in world output systemic bottlenecks hampering domestic growth and subdued levelof capital formation. However consistent efforts by the government to usher intransformational reforms and initiatives has improved confidence. This is reflected inrobust FDI inflows buoyant stock markets improved ranking in ease of doing business andforecast of India being one of the fastest growing economy in CY2017

CY2016 will be considered as a watershed year in India on account of two path breakingevents namely Demonetization and GST. While these initiatives would lead to a degree offlux in the short term they are expected to integrate India's large informal sector withthe formal economy in the long term. This will generate several beneficial effects such asincreased tax to GDP ratio better efficiencies and enhanced transparency

Despite an uncertain global economic situation and emergence of various geo-politicalstress points India's GDP is expected to grow at 7.1% in FY2017 aided by normal monsoonslower commodity prices increased public investment and improving exports. However thisis lower than 8% growth achieved in FY 2016. This reduction is largely ascribed to theresidual effect of demonetization.

In addition private sector investment continues to be lackluster due to overleveragedbalance sheets and cautious lending by banks due to high NPA levels. However the overallgrowth indicators are intact and with improved fiscal management and consistent monetarypolicies the economic environment is expected to be conducive to further growth. Thecountry is expected to grow at 7.1-7.5% in FY2018 which would be amongst the fastestglobally

However the key ingredients to sustained growth would be revival in private investmentand increase in consumption demand which would require further easing of the monetarysituation. All inflation indices have moderated over the previous years which providesscope for interest rate reduction. If these trends continue interest rates could softenin H2 FY2018 provided food inflation shows a downward bias on account of normal monsoons.Further the Reserve Bank of India and the Government are aligned in resolving the bankingsector stress. This should result in resolution of large NPA accounts and coupled withcalibrated recapitalization of banks should act as a major catalyst in reviving the capexcycle

The current domestic scenario provides ample opportunities for Private Equityinvestment to diversify into areas such as distressed assets investment trusts publicprivate partnerships in new sectors start-ups in e-commerce digital and telecom spaceand other niche areas such as education and health. Given the broad spectrum of optionsavailable and different risk-return profiles of each avenue it is an exciting phase forthe industry as a whole. Amongst these options the focus for your Company would be toaddress the opportunities in the infrastructure space by leveraging the IL&FS Group'sstrengths in infrastructure development and financing. Today opportunities in theinfrastructure space span across management of stable operating assets to investmentsinto new builds specifically in the renewable power sector and to addressing the capitalneed of stranded infrastructure assets

The Company for the past two years has been diligently working on developing specificbusiness lines around these themes. These efforts are expected to translate into revenuesduring the current year. In addition the Company is striving to complete planneddivestments across its three verticals of real estate infrastructure and growth-privateequity. Given the challenging liquidity scenario in Corporate India some of thedivestments expected in CY2017 have got delayed. The Company expects to step up the paceof divestment during the current year and divest a substantial portion of its portfolio.This would lay the ground for fresh capital raising largely focused on the infrastructuresector

Dr. Archana Hingorani who served with distinction for 11 years has left the Company.I take this opportunity to congratulate Mr. Krishna Kumar Gangadharan on his elevation asthe Company's Chief Executive Officer. I believe that all our stakeholders would extendhim the same encouragement and co-operation as they have done to his predecessor

With Regards

S M Datta

Chairman

July 5 2017