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MCX surges 8% after reporting six-fold jump in Q1 net profit

The company reported consolidated net profit of Rs 44 crore for June quarter (Q1FY20), on higher trading volume and other income. It had reported profit of Rs 7 crore in the year-ago quarter.

SI Reporter  |  Mumbai 

Multi Commodity Exchange mcx
MCX has 24% equity in the repository set up by CDSL

Shares of of India (MCX) surged 8 per cent to Rs 881 on the BSE in the intra-day trade on Wednesday after the company reported consolidated net profit of Rs 44 crore for June quarter (Q1FY20), on higher trading volume and other income. It had reported profit of Rs 7 crore in the year-ago quarter.

Operational revenue during the quarter under review grew 9 per cent to Rs 79 crore on year on year (YoY) basis. Other income more than doubled to Rs 31 crore as against Rs 12 crore logged in the corresponding quarter of the previous fiscal.

The average daily turnover during the quarter under review increased 13 per cent to Rs 27,473 crore in Q1FY20 from Rs 24,360 crore in the corresponding quarter of Q1FY19. The growth in volume was primarily driven by crude (+32 per cent YoY) and gold (+18 per cent YoY), partly offset by lower base metal volumes. EBIT (earnings before interest and tax) margin of 29.8 per cent came in lower than analysts' estimate of 31 per cent due to higher other expenses.

Motilal Oswal Financial Services (MOFSL) maintain ‘buy’ rating on MCX with 12-month target price of Rs 960 per share.

Software development cost amid new developments on the contract with ’63 Moons’ and impact on revenue if index commodity derivatives are approved are the key things to watch out for, say the analysts at MOFSL.

Timeline around commencement of options monetization and outlook on various segments and profitability are the other key monitorable,” the brokerage firm said in the results update.

At 12:09 pm, the stock was trading at Rs 869, up 7 per cent on the BSE, as compared to a 0.30 per cent rise in the S&P BSE Sensex. It was quoting close to its 52-week high of Rs 917 hit on August 6, 2018 in intra-day trade. The counter has seen huge trading volumes with a combined 2.9 million shares changing hands on the BSE and NSE till the time of writing this report.

First Published: Wed, July 17 2019. 12:12 IST
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