The surge in domestic equity market and equity trading in India drove a 45.4 percent on-year rise in National Stock Exchange (NSE)’s consolidated net profit to Rs 5,198 crore in the financial year ended March 31, 2022.
NSE, India’s largest stock exchange, saw a 53 percent growth in consolidated revenues in the financial year to Rs 9,500 crore largely led by transaction charges.
Trading charges during the period jumped 64 percent on-year to Rs 6,965 crore while the colocation charges rose 58 percent to Rs 433 crore.
The stock exchange was helped by the influx of new retail investors over the 12-month period and a strong equity market. Over 40 million new dematerialized accounts were opened with depositories during the previous financial year reflecting strong growth in equity participation.
Domestic benchmark indices also reported strong growth during the period as the Nifty 50 and BSE-Sensex rose around 19 percent each.
NSE, in an investor presentation, said that cash market segment volumes grew 8 percent in 2021-22 while equity options volumes in terms of premium value jumped 114 percent. That said, the stock exchange’s market share in the cash segment declined 100 basis points to 93 percent while derivatives market share remained at 100 percent.
Operating performance of the stock exchange was also strong during the financial year as consolidated earnings before interest, tax, depreciation and amortization (EBITDA) rose by 54.6 percent to Rs 7,251 crore. However, consolidated EBITDA margins in the year remained largely flat at 76 percent.
The strong financial performance for the stock exchange comes in the backdrop of certain corporate governance issues that were flagged by a recent Securities and Exchange Board of India’s (Sebi) order on former Chief Executive Officer Chitra Ramakrishna and former Group Operating Officer Anand Subramanian.