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Leading commodity bourse MCX today reported over three-fold drop in its standalone net profit at Rs 27.04 crore in the second quarter of the current fiscal due to lower income and higher expenses.
The exchange, promoted by Jignesh Shah-led Financial Technologies India Ltd (FTIL), had clocked a net profit of Rs 81.40 crore in the same period last year, MCX said in a BSE filing.
The performance has been affected due to imposition of commodity transaction tax (CTT) since July and also due to the recent Rs 5,600-crore payment crisis at FTIL group’s another bourse National Spot Exchange Ltd (NSEL).
CTT of 0.01 per cent has been made effective July 1 on the futures trading of non-agri commodities and processed foods. The Government has exempted 23 agricultural commodities from the new tax.
According to the filing, MCX net income declined 36 per cent to Rs 88.02 crore in the quarter ended September 30, 2013 from Rs 137.60 crore in the same period last year. Expenses increased to Rs 77.19 crore from Rs 57.55 crore.
During the first half of the current fiscal, the standalone net profit has declined 40 per cent to Rs 87.16 crore from Rs 146.14 crore in the year-ago period.
“MCX’s performance during H1 FY2014 was relatively good, considering the impact of commodity transaction tax (CTT) effective July 1, 2013,” MCX Deputy Managing Director, P.K. Singhal, said in a statement.
Daily turnover
The average daily turnover on the MCX was at Rs 37,533 crore in the first half of the 2013-14 fiscal.
According to data maintained by the Forward Markets Commission (FMC), MCX’s market share was 89 per cent of the Indian commodity futures market in terms of value of contract traded during H1 of 2013-2014, the exchange said.
Interim dividend
MCX has declared an interim dividend of Rs 7 per equity share of face value of Rs 10 each for the 2013-14 fiscal based on the unaudited financials for the six-month period ended September 30, 2013, it added.
In a separate BSE filing, MCX said two shareholder directors have been appointed to comply with the revised guidelines issued by FMC for the national-level commodity bourses in September.
M.A.K. Prabhu, Canara Bank General Manager, as well as B.V. Chaubal, SBI Deputy Managing Director and Group Executive, have been appointed as shareholder directors, respectively, on the MCX board. Their appointment would be subject to FMC approval, it added.
The company’s scrip was trading up by 1.93 per cent at Rs 490.30 at 11.40 am on the BSE.
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