You are here » Home » Companies » Company Overview » IL&FS Investment Managers Ltd

IL&FS Investment Managers Ltd.

BSE: 511208 Sector: Financials
NSE: IVC ISIN Code: INE050B01023
BSE LIVE 15:50 | 17 Aug 15.25 15.25
(%)
OPEN

16.10

HIGH

16.10

LOW

15.15

NSE 15:50 | 17 Aug 15.30 -0.20
(-1.29%)
OPEN

15.55

HIGH

15.75

LOW

15.25

OPEN 16.10
PREVIOUS CLOSE 0.00
VOLUME 114866
52-Week high 18.45
52-Week low 13.00
P/E 26.75
Mkt Cap.(Rs cr) 479
Buy Price 15.25
Buy Qty 1650.00
Sell Price 0.00
Sell Qty 0.00
OPEN 16.10
CLOSE 0.00
VOLUME 114866
52-Week high 18.45
52-Week low 13.00
P/E 26.75
Mkt Cap.(Rs cr) 479
Buy Price 15.25
Buy Qty 1650.00
Sell Price 0.00
Sell Qty 0.00

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

Company chairman speech

Dear Shareholders

The year 2015 was one of moderate growth for the global economy largely led byplunging oil prices and volatile equity and currency markets. This had a more pronouncedimpact on the emerging markets even as the advanced economies maintained modest growthrates. In spite of the challenges emanating from a slowdown in China and globalmanufacturing weakness Emerging Markets are expected to show better growth in 2016 ledby expectations of a robust growth in India and some parts of emerging Asia

The Indian economy has displayed clear signs of improvement. The Government has shownits intent of continuing reform momentum and the improvement in the business environmentis palpable. Relentless efforts are also being made to promote investments and encourageemployment and entrepreneurship within the country

In its recent budget the Government has taken significant measures to channelize fundsinto the rural sector and the result will soon be visible if the expectations of a bettermonsoon come to fruition. A further boost to consumption is expected with theimplementation of One Rank One Pension (OROP) and the Seventh Pay Commission

During FY2016 the economy met its GDP growth and inflation targets. Consequently theReserve Bank of India (RBI) adopted a softer stance on interest rates. Four interest ratecuts aggregating to a reduction of 150 basis points have been announced since January2015. This is expected to further encourage investments ease liquidity and support thegovernment's fiscal policies. Further rate cuts are widely anticipated on the back ofstrong GDP growth and a more controlled inflation going forward

However for any growth to be sustainable it needs the support of a larger share offunds being allocated towards asset creation. On this front the Indian economy continuesto post disappointing numbers. The corporate sector has continued to be under stressleading to lack of investment appetite and subdued employment growth. The banking sectorhas also been burdened with large and visible defaults and thus has become increasinglyrisk averse resulting in a lower than expected credit growth

Also the impact of global uncertainties and events on the Indian economy cannot beruled out. Impact of tightening of the monetary conditions in the US and the potentialexit of Britain from the European Union continue to loom large. Weakening of global tradecontributed to a large measure by the slowing Chinese economy compounded with the geopolitical tensions continue to temper the global growth outlook. Overall there areincreasingly visible downside risks factoring which the International Monetary Fund hasprojected slower than expected global growth rate at 3.4% for 2016

The investor sentiment in the global Private Equity industry continued to be areflection of the volatility in the equity and currency markets. India with itsprojections of 7%+ growth rates managed to sustain the interest of the investors albeitlargely in the IT&ITES sector. Since then even these potential growth sectors haveseen tempering

The Government has taken initiatives to promote bank financing for start-up ventures toboost entrepreneurship. This is expected to attract more Private Equity investments inthis sector although in more measured terms. Furthermore key impediments in thedevelopment of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts(InvITs) have been addressed by the Government. The launch of such products will helpdevelopers in monetising assets and would create opportunities for investors looking atstable yields

The global investor has also increasingly started to stress on adherence toEnvironmental Social and Governance (ESG) standards resulting in increased capitalallocation to socially relevant investment themes that lay focus on sectors such asfinancial inclusion healthcare education food and agriculture clean energy andtechnology

These developments bode well for IIML. Your company with its expertise and productspread can take advantage of the above opportunities by deepening its product offering.For instance InvITs arguably have a vast scope in bringing structured and predictablereturns to investors and management of such vehicles would help broaden our revenueprofile. Other similar efforts to diversify beyond classic equity fund management wouldalso need to be considered in this fiscal. Offering structured products acrossinfrastructure and real estate not just in India but in other geographies is part of ourstrategy. This ability to innovate has been our forte and we are confident of deliveringvisible outcomes during the current year

With Regards

Mr. S M Datta

Chairman

June 162016