MCX hits 52-week low on disappointing Q3 results

The stock hit a 52-week low of Rs 846, down 6% on BSE in intra-day trade after the company reported 45% decline in consolidated net profit at Rs 188 million in December 2017 quarter.

Multi Commodity Exchange of India (MCX) hit a 52-week low of Rs 846, down 6% on BSE in intra-day trade after the company reported 45% decline in consolidated net profit at Rs 188 million in December 2017 quarter (Q3FY18).  It had a profit of Rs 340 million in the same quarter last fiscal.

For Q3FY18, MCX's total income decreased by 23% to Rs 765 million from Rs 999 million over the previous quarter. While the operating revenue decreased by to Rs 610 million, the other income comprising primarily of treasury revenue halved to Rs 155 million on account of steep rise in bond yields, impacting the investment income.

Earnings before interest, tax, depreciation and amortization (EBITDA) margin declined to 37.99% from 50.6%.

"The quarter witnessed mixed performance across product segments. Contrary to historical trend, metals segments had an increase over the volumes. However, because of low volatility in gold prices during the quarter, which led to a decrease in bullion volumes by 29% over the previous quarter, there was an overall decrease in volumes. The rise in Bond yields affected investment gains resulting in a fall in investment income,” said Mrugank Paranjape, MD & CEO, MCX.

At 10:25 am; the stock was trading 5% lower at Rs 852 on BSE, as compared to 0.35% rise in the S&P BSE Sensex. A combined 978,177 shares changed hands on the counter on NSE and BSE so far.