MCX logs ₹5 crore loss on one-time software fee

Our Bureau Updated - February 10, 2024 at 07:06 PM.

Multi Commodity Exchange’s income rises 27% to ₹209 crore in Q3

Multi Commodity Exchange | Photo Credit: KSL

Multi Commodity Exchange (MCX), the country’s largest commodity exchange, registered a net loss of ₹5 crore in the December quarter against a net profit of ₹39 crore logged in the same period last year due to one-time payment of fees for its new software.

Income rose 27 per cent to ₹209 crore (₹164 crore). Expenses increased 94 per cent to ₹223 crore (₹115 crore).

The exchange has paid ₹146 crore to 63 Moons Technologies for availing its services till last December. MCX had entered into an agreement with Tata Consultancy Services (TCS) to develop a new Commodity Derivative Platform (CDP) in September 2022.

On exigency to ensure continuity of the commodity trading and clearing platform, it continued services of the vendor, 63 Moons Technologies, till December 2022 for ₹60 crore. Later, the services were extended till June 2023 for ₹81 crore due to a delay in the delivery of new software and the services were extended for two quarters till December for ₹250 crore. Finally, TCS delivered the software which went live last October after requisite approvals.

The exchange recorded an EBITDA loss of ₹2 crore in the quarter under review against a positive EBITDA of ₹44 crore in the same period on account of payment made to the technology vendor and contribution to SGF.

Average daily turnover in the futures segment was down 14 per cent at ₹20,796 crore (₹24,265 crore) while that of options more than doubled to ₹95,989 crore (₹39,402 crore).

Published on February 10, 2024 13:36

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