Multi Commodity Exchange of India (MCX) Q4 23/24 earnings summary

Executive summary

• Maintained leadership in India's commodity derivatives market with 95.9% futures and 99.14% options market share in FY 2023-24.

• Successfully migrated to a new Commodity Derivative Platform (CDP) developed by TCS, going live in October 2023.

• Significant growth in options trading offset a decline in futures turnover; options ADT rose 162% to ₹89,244 crore, while futures ADT fell 16.5% to ₹19,636 crore year-over-year.

• Net profit declined 60% to ₹5,196 lakh due to higher technology and support costs.

Financial highlights

• Standalone total income increased 29% to ₹67,124 lakh; operating revenue up 30% to ₹58,616 lakh.

• Net profit after tax dropped to ₹5,196 lakh from ₹12,983 lakh year-over-year.

• Operating expenses surged 72% to ₹56,601 lakh, mainly from software support and technology upgrades.

• Earnings per share (EPS) fell to ₹10.19 from ₹25.51.

• Consolidated net profit was ₹8,311 lakh, down from ₹14,897 lakh.

Outlook and guidance

• Positive outlook driven by India's robust economic growth and expanding commodity demand.

• Plans to launch new products, including derivatives on electricity and commodity indices, subject to regulatory approval.

• Focus on increasing institutional participation and expanding product suite.