NSE Q1 profit jumps 9% to ₹1,844 cr; operating revenue up 13%

National Stock Exchange of India (NSE), one of the leading stock exchanges in India, has posted a consolidated net profit of ₹1,844 crore in the first quarter ended June 30, 2023, registering a growth of 9% on a year-on-year (YoY) basis. The net profit margins for the quarter stood at 55%, while the earnings per share increased to ₹37.26 in Q1 FY24 from ₹34.13 in the same period last year.

The consolidated income from operations climbed 13% YoY to ₹2,987 crore in Q1 FY24. The topline growth was aided by trading revenue as well as revenue from other lines, which includes listing, index services, data services and colocation services.

During the quarter under review, NSE contributed ₹7,889 crore to the exchequer, of which Securities Transaction Tax comprised ₹6,411 crore, stamp duty ₹503 crore, Goods & Services Tax ₹475 crore, income tax ₹225 crore, and SEBI ₹275 crore.

On the trading volumes front, cash markets recorded average daily traded volumes (ADTVs) of ₹58,593 crore, up 4% YoY. While the equity futures registered a 13% YoY decline in ADTV at ₹1,04,056 crore, equity options (premium value) ADTVs stood at ₹54,210 crore, up 33% YoY.

On a standalone basis, the net profit grew 7% to ₹1,598 crore during the June quarter of FY24 as compared to ₹1,487 crore in the corresponding quarter last year, while the profit margin stood at 51%. The total operating income was at ₹2,833 crore, up 14% from ₹2,488 crore in the same period last year.

The Mumbai-based exchange incurred total expenses of ₹970 crore on a standalone basis, which grew 51% as compared to the previous fiscal. The 30% of total expenses, or ₹288 crore, were spent on SEBI turnover fees, SEBI settlement fees, contribution to IPFT, and contribution to core SGF.

At the operating EBITDA level, the NSE on a standalone basis posted an EBITDA margin of 69% for Q1FY24, compared to 77% in the corresponding quarter last year.

In the last investor call on May 16, 2023, the NSE informed regarding augmentation of the core settlement guarantee corpus from current level of around ₹5,000 crore to ₹10,000 crore over next few years in a phased manner. While approving the earnings for June 2023 quarter, the board of the company announced to infuse funds in NSE Clearing Limited (NCL), a wholly owned subsidiary, amounting to ₹1,400 crore kept aside for the same, which is towards contribution to be made by NCL to the corpus of core settlement guarantee fund.

NSE, which began operations in 1994, is the world’s largest derivatives exchange by trading volume (contracts) as per the statistics maintained by the Futures Industry Association (FIA) for the calendar year 2022. It is ranked third in the world in the cash equities segment number of trades as per the statistics maintained by the World Federation of Exchanges (WFE) for the calendar year 2022. It is also ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data.