MCX net profit up 8% in Q2

Posts Rs 29 cr profit, net sales dip by 39% to Rs 50 cr

Multi Commodity Exchange (MCX) reported an eight per cent rise in net profit at Rs 29.38 crore in the September quarter of FY15, compared to the year-ago period. Net sales were down 38.6 per cent to Rs 49.8 crore.

The commodity exchange’s profits were up in the September quarter thanks to reduction in software support charges, which came down to Rs 8.7 crore from Rs 15.7 crore in the September quarter of the last financial year.

Commodities regulator Forward Markets Commission had asked MCX to re-negotiate its software contract with the erstwhile promoter, Financial Technologies.

Renegotiation of software charges resulted in lower expenses, the commodity exchange said in a filing to the BSE.

Other expenses during the quarter were also down by 42 per cent to Rs 18.8 crore from Rs 32.6 crore last year. This is mainly because a lot of charges used to be paid to Financial Technologies till last year on account of the software agreement, which no longer exists.

MCX said it had sought permission from the Securities and Exchange Board of India to hold its five per cent equity in MCX-SX and Clearing Corporation, as it no longer acts in concert with Financial Technologies, which was declared not fit and proper to own shares in exchanges.

The total turnover of MCX in the September quarter this year stood at Rs 12,51,150 crore against Rs 20,67,668 crore in the September 2013 quarter, down 34.4 per cent.

During the quarter, Kotak Mahindra Bank picked up a 15 per cent stake in MCX from Financial Technologies for a sum of Rs 459 crore.