MCX Q4 Results: Net profit at ₹88 crore vs loss of ₹5.4 crore, revenue up 35%; dividend declared

MCX Q4 Results: After reporting losses in the last two quarters, Multi Commodity Exchange of India Limited (MCX) earned a net profit of ₹87.8 crore during the January-March quarter of FY24. The exchange in the commodity derivatives market segment reported a 35% YoY rise in its revenue to ₹181.1 crore. MCX has declared a final dividend of ₹7.64 per equity share for FY24 on Tuesday. India's largest exchange in the commodity derivatives market segment reported a net loss of ₹5.4 crore during Q3 FY24. 

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Despite an annual rise in its revenue, the Mumbai-based exchange reported a 5.42% sequential decline in its revenue from ₹191.53 crore reported during the quarter ended in December. For the financial year 2024 (FY24), MCX reported a 44.2% decline in its net profit from ₹148.97 crore reported in FY 23. MCX shares closed 3.20% higher at ₹4028.2 per share on BSE on Tuesday.

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MCX FY24: Dividend declared 

The Board of Directors of MCX recommended a final dividend of ₹7.64 per equity share for FY24. The recommended dividend will be approved by the shareholders at the 22nd Annual General Meeting. The company is yet to announce the date of the AGM, record date and eligibility of shareholders. 

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“Recommended a final dividend of ₹ 7.64/- per equity share (face value of Rs.10/- each) for the Financial Year ended March 31, 2024. This proposal is subject to the approval of shareholders at the ensuing 22nd Annual General Meeting of the Company. The date of 22nd Annual General Meeting, the record date to determine the eligibility of shareholders for payment of dividend and the date of payment/dispatch of dividend shall be intimated subsequently,” read the MCX BSE filing. 

MCX Q4 FY24 results: Key highlights

Highest combined ADT

The Multi Commodity Exchange of India Ltd (MCX) reported its highest ever Average daily turnover (ADT) during FY24 since its inception, according to MCX press release. The financial year 2023-24 witnessed the highest combined ADT of Rs. 108,880 crore since inception. However, the ADT of commodity futures declined by 16.5% during the year to Rs. 19,636 crores vis-àvis Rs. 23,514 crores in FY22-23.

EBITDA growth

During the quarter under review, MCX Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased to ₹120.33 crore, which remained negative during the previous quarter. The EBITDA margin for the quarter under review stood at 60.33% and the PAT margin was 44.06%.

Affected by payments to technology vendors and contributions to the Settlement Guarantee Fund (SGF), MCX EBITDA for FY24 declined by 35.73% to ₹139.70 crore as against ₹217.35 crore for the previous year. 

Income and profit margins

The total income of the company for the March quarter increased by 29.66% YoY to ₹199.45 crore. Whereas, it witnessed a 9.81% QoQ decline from ₹209.26 crore to ₹199.45 crore. Net profit for the quarter was at ₹87.87 crore compared to a loss of Rs. 5.35 crore over the sequential quarter ended December 31, 20