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IL&FS Investment Managers Ltd.

BSE: 511208 Sector: Financials
NSE: IVC ISIN Code: INE050B01023
BSE 09:28 | 19 Aug 3.25 -0.12
(-3.56%)
OPEN

3.25

HIGH

3.25

LOW

3.25

NSE 09:24 | 19 Aug 3.25 -0.15
(-4.41%)
OPEN

3.25

HIGH

3.50

LOW

3.25

OPEN 3.25
PREVIOUS CLOSE 3.37
VOLUME 500
52-Week high 14.32
52-Week low 2.91
P/E 10.16
Mkt Cap.(Rs cr) 102
Buy Price 3.28
Buy Qty 3986.00
Sell Price 3.41
Sell Qty 1987.00
OPEN 3.25
CLOSE 3.37
VOLUME 500
52-Week high 14.32
52-Week low 2.91
P/E 10.16
Mkt Cap.(Rs cr) 102
Buy Price 3.28
Buy Qty 3986.00
Sell Price 3.41
Sell Qty 1987.00

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

Company chairman speech

Dear Shareholders

The global economy has been posting a strong growth of ~4% p.a. in the recent past andthe expectation has been that this growth trend would sustain. Risk to this growth arehowever tilted to the downside. Interest rate hikes by the US Federal Reserve and risingcrude price is of concern. The rise of protectionism is evident from the tariff increasesbeing enforced citing unfair commercial practices and rising trade deficit. It isestimated that global gross domestic product growth could take a hit of around one percentif the tariff wars escalate. Needless to add a global trade war would hit emergingmarkets the hardest as trade is a key factor in supporting developing economies addresstheir concerns. As In India growth in the first half of FY2018 was disappointing.

The economy has recovered in the fourth quarter of FY2018 and has posted a 7.7% growthrate enabling the country to retain its position as the fastest growing major economy. Afaster pace of growth in manufacturing at 9.1% compared with 6.1% a year ago helped liftthe overall economic growth during the quarter. The farm sector also grew at a healthyrate of 4.5% while construction activity powered by the government investments in thehighways sector clocked a double digit growth of 11.5% to give a fillip to the economy.The World Bank has forecast that the Indian economy will see a robust GDP growth of 7.3%in 2018-19 and 7.5% for the next two years An environment of strong growth in the countryis key to our ability in raising new funds. While we continuously strive to leverage thepositive macro-economic conditions in our Fund raise we also need to be cognizant of thevarious underlying risks. The banking sector is facing a significant challenge in terms ofmanaging a large portfolio of non-performing loans. This may impact the bank's ability togrow the fresh loan book to the extent required to support the projected growth andinvestment in the country. In addition a sustained rise in crude oil prices would curbthe fiscal room available to the government to invest in key sectors like infrastructure.

Furthermore the resultant inflationary pressures in turn may adversely impactcurrency stability and also lead to upward movement in the interest rate curve. Thesefactors would have a significant impact on investor and investment appetite

India is also heading into an election year. This will add to the complexity ofdecision making for the investors. The Private Equity Fund raise and investmentenvironment for the coming year will reflect this uncertainty. The impact would varyacross sectors. Certain sectors like consumer-tech banking insurance InformationTechnology etc. may witness lower unpredictability. In other sectors like infrastructureand real estate investors may adopt a wait and watch position – not just to see howthe macroeconomic and political situation pans out but also to see how effectively theinsolvency resolution is implemented across various stressed assets In this context yourCompany is seeking to work on products which either leverage on investor preferences orwhich effectively the former the next round expansion of your Company's infrastructuredebt platform and the general purpose private equity fund is a case in point. As regardsthe latter an infrastructure fund focused on operating assets or a real estate fundinvesting into yield generating properties can be considered as suitable product offerings

In parallel your Company has also been focusing on de-risking its India centricbusiness model. Some of the initiatives are beginning to bear fruit. We believe that bythe end of this financial year a meaningful component of revenues would begin to accruefrom such offshore ventures of your Company Many of the above products are being developedin partnership with marquee Institutions. We value these partnerships and have beeninvesting significant time and resources in nurturing these relationships. Likewise wevalue the support and encouragement which you as shareholders have extended to us. We hopefor success in building sustainable value for our partners and foremost our shareholdersduring the coming year

With Regards

S M Datta

Chairman

July 5 2018