MCX rallies 9% to hit 2-year high on strong September quarter results

The company's consolidated net profit doubled to Rs 72 crore in September quarter (Q2FY20), on the back of higher turnover.

SI Reporter  |  Mumbai 

MCX
MCX building in Mumbai

Shares of Multi Commodity Exchange of India (MCX) hit a two-year high of Rs 1,108, up 9 per cent on the BSE on Wednesday after the company’s consolidated net profit doubled to Rs 72 crore in September quarter (Q2FY20), on the back of higher turnover. It had posted profit of Rs 36 crore in the year-ago quarter. The stock was trading at its highest level since October 23, 2017.

In Q2FY20, MCX's operating income registered a growth of 41 per cent to Rs 100 crore from Rs 71 crore in the corresponding quarter of the previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortisation) during the quarter increased by 103 per cent to Rs 92 crore from Rs 45 crore over the corresponding quarter of previous fiscal.

The average daily turnover traded in commodity futures on the exchange increased by 40 per cent to Rs 34,526 crore in Q2FY20 from Rs 24,655 crore in the year-ago period.

Gold and crude volumes increased steeply by 133 per cent and 88 per cent year-on-year (YoY), respectively. However, base metal volumes declined sharply due to the SEBI's directive to allow trading of only one contract per commodity and the switch from cash settlement to delivery-based settlement.

Analysts at Motilal Oswal Financial Services (MOFSL) expect volume/revenue/earnings CAGR (FY19-21) of 22 per cent / 24 per cent / 28 per cent. Over the past few months, sentiment around reversed from that of competition concerns to one of optimism, largely driven by growth in bullion volumes. Its monopolistic market share has remained intact and it now ruled out the possibility of a price cut, which was earlier on the anvil, the brokerage firm said in the result update.

At 11:10 am, was trading 4 per cent higher at Rs 1,056 on the BSE, as compared to a 0.21 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-fold with a combined 4.95 million shares changed hands on the NSE and BSE.

In the past three months, has rallied 36 per cent, as compared to a per cent decline in the Sensex.

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First Published: Wed, October 16 2019. 11:16 IST