NSE Q1FY24 results: NSE continues to reinforce position as leading exchange!

With diverse revenue streams and a focus on expanding its offerings, NSE continues to reinforce its position as a leading exchange in the country

The National Stock Exchange of India (NSE) demonstrated a strong performance in Q1 FY24. With diverse revenue streams and a focus on expanding its offerings, NSE continues to reinforce its position as a leading exchange in the country.

NSE’s consolidated income from operations for Q1 FY24 stood at Rs 2,987 crore, indicating a 13 per cent year-on-year increase. This growth in revenue can be attributed not only to trading revenue but also to various other sources, including listing, index services, data services, and colocation services.

The exchange's consolidated net profit for Q1FY24 stood at Rs 1,844 crore, reflecting a 9 per cent year-on-year rise. The net profit margins for the quarter were reported at 55 per cent. Furthermore, the earnings per share on a consolidated basis increased from Rs 34.13 in Q1 FY23 to Rs 37.26 in Q1 FY24.

Regarding trading volumes, the cash markets recorded an average daily traded volume (ADTV) of Rs 58,593 crore, marking a 4 per cent YoY increase. However, equity futures saw a decline with an ADTV of Rs 1,04,056 crore, down by 13 per cent YoY, while equity options (premium value) ADTVs stood at Rs 54,210 crore, experiencing a notable 33 per cent YoY increase.

On a standalone basis, NSE reported a total operating income of Rs 2,833 crore for Q1FY24, reflecting a substantial 14 per cent YoY growth compared to Rs 2,488 crore for the same quarter previous year.

The total expenses on a standalone basis amounted to Rs 970 crore, which saw a significant 51 per cent YoY increase. Of this total expense, Rs 288 crore, representing 30 per cent, were attributed to SEBI Turnover Fees, SEBI Settlement fees, Contribution to IPFT, and Contribution to Core SGF.

At the operating EBITDA level, NSE on a standalone basis achieved an EBITDA margin of 69 per cent for Q1 FY24, showing a decline compared to the corresponding quarter's 77 per cent last year. Standalone net profit for Q1 FY24 reached Rs 1,598 crore, growing by 7 per cent YoY from Rs 1,487 crore in the corresponding quarter of the previous year. The net standalone profit margin stood at 51 per cent.

During an investor call held on May 16, 2023, NSE had disclosed its plan to augment the Core Settlement Guarantee corpus from around Rs 5,000 crore to Rs 10,000 crore over the next few years in a phased manner. Accordingly, the Board of Directors, while approving the unaudited financial results for the quarter ended June 30, 2023, decided to invest Rs 1400 crore in NSE Clearing Limited [NCL], a wholly-owned subsidiary, for the same purpose of contributing to the corpus of Core Settlement Guarantee fund.

Throughout the first quarter of FY 24, NSE contributed Rs 7,889 crore to the exchequer, comprising Rs 6,411 crore for STT, Rs 503 crore for stamp duty, Rs 475 crore for GST, Rs 225 crore for Income tax, and Rs 275 crore for SEBI.

National Stock Exchange of India (NSE) is the world’s largest derivatives exchange by trading volume (contracts) as per the statistics maintained by the Futures Industry Association (FIA) for the calendar year 2022. NSE is ranked third in the world in the cash equities segment number of trades as per the statistics maintained by the World Federation of Exchanges (WFE) for the calendar year 2022.