MCX net profit down 43% in Q4

Multi Commodity Exchange net profit for the fourth quarter of 2013-14 saw a sharp drop of 43 per cent to Rs 43.7 crore compared to Rs 76.6 crore in the same period last year. This was due to the commodity transaction tax (CTT) levied on non-agri commodities.

The exchange has always seen huge volumes in gold trading. But due to a fall in prices, volumes took a hit. Bloomberg estimates had pegged the net profit at Rs 26.5 crore. The quarter has seen a reversal of Rs 17 crore from the settlement guarantee fund, included in total expenses.

Total income from operations saw a fall of 49.5 per cent during the March quarter of FY14 to Rs 64 crore compared to Rs 126.6 crore last year.

The board has recommended a dividend of Rs 3 per equity for FY14. This is subject to approval of the shareholders in the annual general meeting. With this, the total dividend for the year comes to Rs 10. But promoter Financial Technologies (India) will not get the dividend, by new norms for 'not fit and proper' shareholders. FTIL has put its stake in MCX on the block.