MCX shares fall 3% on recording a loss in Q3 despite 33% surge in revenue

Shares of Multi Commodity Exchange of India or MCX traded 3 percent lower early on February 12 on reporting a net loss of Rs 5.35 crore for the quarter ended December FY24.

MCX slipped into the red from a net profit of Rs 38.79 crore a year back, despite a strong topline growth. Its revenue from operations grew 33.4 percent on-year to Rs 191.5 crore during the quarter.

As of 9.20am, the shares of MCX were trading at Rs 3,713.5 each on the NSE, lower by 3.04 percent compared to the previous session’s closing price.

The holding company has made an additional contribution of Rs 13.12 crore in October 2023 towards the settlement guarantee fund. Also, the software support charges and product licence fees more than doubled to Rs 146.32 crore from Rs 67.60 crore on-year.

EBITDA for the quarter ended December 31, 2023 increased by 79.88 percent to a negative Rs 1.97 crore from negative Rs 9.79 crore over the sequential quarter ended September 30, 2023.

MCX noted that if not for the payment commitment of Rs 125 crore made till December 31, 2023, for Q3 FY23-24 to its technology vendor, the company would have made a profit, especially having gone live with a new platform on October 16, 2023.

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During the quarter, the number of total traded clients stood at 4.77 lakh, witnessing a growth rate of 7.4 percent over the previous quarter.

1.5 MT and 27.6 MT of gold (all variants) and silver (all variants) respectively were delivered through the Exchange mechanism. In base metals, a total of 27,804 MT of base metals were delivered during the quarter under review.

Over the past six months, shares of MCX have more than doubled investors’ wealth, rising around 140 percent during the time period. In comparison, the frontline index Nifty 50 has given investors returns of around 12 percent.

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