Mstc Limited

Mr Pratesh

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Mr Pratesh

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Mr Pratesh

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Mr Pratesh

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Mr Dikshit

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Mr Dikshit

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Mr Dikshit

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Mr Keshav

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Mr Keshav

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Mr Keshav

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Management: Yeah, it’s very difficult to give basically the future projections, but as the things stand lot of government sectors, private sector is relying and such is and with the Government of India policy, clean-up policy, lot of scrap is coming to us.

— Mr Pratesh

So, it’s very difficult to estimate the vehicles, the count of vehicles, so we are getting so many figures, so we are not hazarding any gaps.

— Mr Dikshit

Management: Very, very difficult to say.

— Mr Dikshit

Q

Sir, can you share the progress in the e-sales scrap sales basically in FY23? What would be the growth there and what is it as now as a proportion of your e-commerce revenue? Management: okay, In the year 2022-23, the scrap played a major role in the e-commerce revenue. It was more than 50% as against slightly less than 50% in the last couple of years. The volume from scrap total ecommerce revenue was about 288.60 crores. Out of which about 168 crores was from scrap alone. Mr Pratesh: What will be the growth YoY? Management: See e-commerce overall growth we are expecting and then what we have

Mr Pratesh

Yes, you have moved your number from let’s say the e-comm business has now moved from 290 crores in FY22, to about 348 crores now in FY 23. What is the growth now do you expect on this number? Management: Yeah, it’s very difficult to give basically the future projections, but as the things stand lot of government sectors, private sector is relying and such is and with the Government of India policy, clean-up policy, lot of scrap is coming to us. So whatever growth momentum has been there for last couple of years, we are hoping to maintain that. So, we are working hard to maintain that at least

Q

Yeah. Thanks for the opportunity. My first question is related to the end-of-life vehicle business, which we started this quarter. So, you mentioned that in the previous call you mentioned that the end-of-life vehicle of only the government part would be around 15 lakh and we have sold around 2100 this year. And I think the deadline was 31st March, I mean next year. So do you expect that significant part of that 15 lac can come up in FY24 and related to that is, you also mentioned that till 31st March that portal will be on a fixed fee and from 1st April it will be on a percentage basis. So ju

Mr Dikshit

A broad range would also be fine. Management: Could be around 30-40 thousand. Page | 6 Mr Dikshit: Okay, 30-40 thousand. Okay. And right now, this regulation is only for the government vehicles. The private vehicle, they are not mandated. They can do on their own, but they are not having any deadline. Management: This as I explained you see there are two parts of it. I explained it that for private also the government has laid down that after so many years you will have to get it tested before it gets de-registered with RTO, right. So, for that one mandatory requirement is automatic testing ce

Q

Sir on 20th of April a news item appeared that coal India’s e-auction platform will go live on May and within three months all the transactions will, all the auctions will, move there from MSTC and M junction. Also, Sir on 20th April 2023 in Economic Times news article came that public sector banks are launching their own E auction app to sell approximately 5 lakh realty assets, which are currently being sold through MSTC. Sir, so I hope you are at least aware of these developments and sir what is your comments on the same? Management: okay, 1st question is regarding Coal India. With this anno

Mr Keshav

Management: Yes. So, when you are comparing that, you are taking the figure from that segmental reporting. Correct. Mr Keshav: No. I am talking about consolidated cash flow statement, which is the next page from your consolidated balance sheet. Management: Yes, there are two things. One is the standalone performance, one is the consolidated, okay. So consolidated comprises of our subsidiary FSNL also. So, when you look at both in that way, so of course this operating profit has gone up by very major percentage. You cannot compare. I mean it’s a group you are comparing. So, if you let us go by

Q

I noticed that there is so much working capital release in the current financial year and the consolidated cash flows. Generating and operating cash flows of 886 crores. Is this sustainable? And what has happened with other financial liabilities going up so much? They spiked from 787 to 1350 crores. Management: Yes. So just now, before I was talking to you, I answered another question also. Like you see these are some phenomena are very temporary in nature like. But our actual, if you go by the liquidity position, our actual standalone basis, our actual cash tangible net worth is around 400 pl

Mr Viraj

Right. So, you know I see 1500 crores of net cash on books or 1500 crores of cash including bank balance on books with the market cap of 2200 crores. And you made FD investments of about 600 crores in financial year 23. Why isn’t the company considering doing a buyback or paying out higher dividends with such kind of cash flow? Especially when you’re generating 200 odd crores of free cash flow every year? Management: Look, just now I had answered. So right now, this year also we had almost distributed dividend, 50% of our PAT of that what you can see, yeah 100 plus is fine 50%. And balance of

Q

Thank you for the opportunity. We are new to the company. So, with your permission I would like to you know ask a couple of basic questions. So, in marketing for the year 23, would it be fair to assume that these are purely the 150 not crores of revenue that you’ll booked is purely service income and there is no purchase and sales of any, you know, transaction that has gone through your books? Management: Yes, this is completely only service income.

Mr Vivek

Okay. And this service income is again on a percentage basis of a GVT or is it on a fixed fee basis? Management: Percentage basis of the revenue transaction. Let me explain you very vividly. The marketing that you are talking about like that it comprises of that segmental revenue from 115 crores that you have seen. That it comprises certain write back etc. So, we charge in the marketing on the fix percentage basis on the amount of volume credit. That’s the answer. Percentage on the amount credit. Percentage basis. And one request in, you know if you look at the ecommerce revenue, it looks like

Q

Yeah, Hello. Thank you for the opportunity. My first question would be regarding the Hyderabad plots which are coming for sale and you guys are targeting Hyderabad and specially Telangana. Any plans for some other cities like New Delhi, NCR, Bangalore? And what kind of margins do we enjoy? Management: Can you repeat your question? It wasn't clear.

Mr Harshit

Yeah. My question is regarding Hyderabad and Telangana plots are coming to our portal and we have been selling that. And firstly, I want to know that what kind of margins are we enjoying on this? And secondly, any plans to fall into some other states like Punjab, Delhi, NCR, Mumbai? Management: Yes. Actually, we are in touch with many of the development authorities for sale of plots and everything. But what happens is in many states they have the government portals and they mandate that you know these transactions should happen through that portal. However, we are still trying to expand this l

Q

Yeah, thank you. So first, thank you Sir and Madam for, you know adding more details to your presentation. This was a request last time and thank you for taking it in. I have one more request to you. If you could just, please present the numbers in crores and not lakhs, it would just make it more readable. Sir. Management: We will do it.

Mr Vikas

Thank you. That’s a request. I have one question on the balance sheet, on the consolidated balance sheet. We said that our provisions have gone down in the P&L, but when you look at the consolidated balance sheet, the provision has gone up from 62 crores to about 70 crores. So, what am I missing here, Sir? Management: Yeah, You see these are the two different figures. When we talk about the provision, what we do in the P&L, it is on the trade generally we make the provision. Okay, So and the provisions that you are looking at the balance sheet, these are the provisions for the expenses. So, li

Q

Yeah, I wanted to check on the progress of the private customers on your portal. Some years back you had given to the exchange, your tie ups with Reliance and Larsen and all these and given out some numbers. So, what is the progress now of these customers on your portal? Management: Yes. Actually the number of private sector clients is increasing from day-to-day. Reliance is transacting a little less volume. But as far as L&T, Tata Power, Vedanta, these people are concerned, the volume of scrap trade is also quite good through our portal, Bharti Airtel, Indus Towers, and all. They are our main

Mr Pratesh

So private is what portion of your e-commerce revenue now, contribution? Management: We are not maintaining basically figures like that as of now. So, we will take it as a suggestion and see whether we can have our accounting where we can have that kind of estimate. But any guess that you want to share, is it 5%, 10 percent, 2%? Management: No, we don’t we don’t It’s not a very major sum.

Q

Yeah. My first question is regarding this trade receivable. If we see on a standalone balance sheet. It is around 333 crores. Can you just break it up between the e-commerce and the marketing? Management: Yes, so likely yes I am giving you that breakup. Like if we go to the that day before Publication. So, our ecommerce is around 50 crores. The balance is in our associate model and 110% BG model and all are secured that much I can tell you. Because our trade receivables have shown a consistently decreased value as on 31st March 22 it was 407. Now we are at 333. So even in the marketing it is s

Mr Dikshit

In terms of marketing business, so you know couple of years back we were thinking that it will completely go out of the balance sheet. But now I think what we are doing is, we are continuing with the 110% guarantee back business. So, this we will continue to do or is there any plan that we will completely exit the marketing business? Management: We definitely would like to continue and expand this to the extent possible because that’s completely secure. We are quite sure of the receivables. So, definitely we would like to continue and maybe you know expand it to the extent possible. Mr Dikshit

Q

Hello. What will be the revenue growth for the next three to five years for MSTC in a percentage wise? Management: We cannot give a; I mean basically figure like that. We will, we are definitely targeting for very high growth. But the growth depends upon so many factors. I mean some of the factors may not be intrinsic to us. It may be some external factor. So, what we can assure everybody is that we are expecting and working for the healthy growth. That’s all and the diplomatic answer only we can give. We cannot give the definite figure as of now.

Mr Sanjay

To your that agriculture portal, Jaivik Kheti and all. Is there any new developments on that? Management: No actually, this is acting more like a knowledge management portal now. So we keep updating the data from time to time and we are maintaining the portal. The transactions aren’t happening, and the ecosystem is not mature enough to have transactions on that as of now. Like postal department for delivering the goods and all that. Management: Yes, we did that. But somehow, it’s not really taking off in a big way. I mean there are lot of ground level issues. And we don’t see it happening soon

Q

Yeah, Thank you for taking my question. I just had one clarification doubt. Earlier you mentioned that the cash balance is close to 400 crores. But if I am looking at the balance sheet standalone, it is cash plus bank balances is a lot higher than that. Can you explain what am I missing here? If I am reading something incorrectly here? Management: Yes. some interpretation there was like which is our own cash, which is for the cash in transit. So, our own cash, if you go by our tangible net worth, our own cash, MSTC own cash in the standalone balance sheet. It is around 400 plus crore. It is ou

Mr Miraj

I understood. Thank you so much. If I have any more questions I will get back. Thank you. Page | 13

Q

Sir, you mentioned that we had done auctions worth 3 lakh crores last year. And our income in e-commerce was 349 crores. So which means that we are basically getting 0.01% of the auction proceeds. But despite that our customers are making their own dedicated portal. So that can only imply that I don’t think they are much interested in saving that 0.1%, but mostly that they are not satisfied with our portal. So, what are your comments about this? Management: Actually, you are I think interpreting it in different way. I would like to put across that 3- lakh crore worth of goods got transacted th

Management