The Multi Commodity Exchange has reported a 5 per cent increase in December quarter net profit at ₹23 crore against ₹22 crore recorded in the same period last year. Income from operations were down 7 per cent at ₹57 crore (₹61 crore).

Help from expense front

Profitability was boosted by lower expenses of ₹39 crore (₹51 crore) and higher other income of ₹20 crore (₹18 crore). It recovered ₹6 crore from the legal and appropriate corrective measures taken after the special audit report undertaken at the behest of the commodity market regulator Forward Markets Commission.

Contrary to market expectations, the board of MCX has not declared any dividend even though it had announced that the directors would consider a dividend at its meeting held on Friday.

Meanwhile, the board has approved the appointment of Balasubramaniam V, Chief Business Officer of the BSE as the new Managing Director and Chief Executive Officer of the commodity exchange.

Awaits FMC nod

Earlier, the appointments committee shortlisted five candidates and zeroed in on Balasubramanian. It then recommended his name to the board. The new appointment would be subject to FMC approval. Interestingly, MCX has managed to gain talent from BSE which plans to launch a commodity exchange soon. It has received SEBI approval for its commodity exchange venture and is awaiting a final nod from the FMC.

As of December quarter, the exchange holds 2.71 crore equity shares and 63.41 crore warrants of MCX Stock Exchange and 65 lakh equity shares of MCX-SX Clearing Corporation.

Pursuant to a SEBI order of March, 2014, the company has been directed by the securities market regulator to divest its holdings in both MCX-SX and MCX-SX CCL. MCX has made a representation to the market regulator that FTIL and the company no longer act in concert, especially in view of the recent developments, and therefore, the company should not be required to divest its holdings.

Based on the latest available financial statements of these companies, the management of MCX is of the view that the aggregate carrying cost of investment at ₹138 crore which is equivalent to the cost of their acquisition represents the fair value of these investments. Further, the company is in the process of evaluating these investments, said MCX.

The shares of the company were up 0.33 per cent at ₹860 on Friday, on the BSE.

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