NSE Q3 revenue up by 25 per cent; cash markets ADTV jumps 50 per cent YoY!

This growth was not only propelled by trading revenue but also bolstered by other revenue streams, including data center and connectivity charges, clearing services, listing services, index services, and data services.

NSE, India’s premier exchange, has announced its consolidated financial results for the third quarter of the fiscal year 2023-24, showcasing robust growth across various segments. Consolidated revenue from operations surged to Rs. 3,517 crores, marking a significant 25 per cent increase year-on-year. This growth was not only propelled by trading revenue but also bolstered by other revenue streams, including data center and connectivity charges, clearing services, listing services, index services, and data services.

The exchange reported a consolidated net profit of Rs. 1,975 crores for Q3 FY24, reflecting an 8 per cent increase compared to the same period last year. Notably, the net profit margin for Q3 FY24 stood impressively at 51 per cent.

Earnings per share rose to Rs. 39.90 in Q3 FY24 from Rs. 36.90 in Q3 FY23 on a consolidated basis. The trading volumes exhibited significant growth, with cash markets recording an average daily traded volume (ADTV) of Rs. 80,512 crores (up 50 per cent YoY), equity futures reaching an ADTV of Rs. 1,31,010 crores (up 18 per cent YoY), and equity options (premium value) ADTVs standing at Rs. 56,707 crores (up 28 per cent YoY) for Q3 FY24.

Despite the substantial increase in trading volumes, the growth in total transaction charges was relatively moderate, growing by approximately 18 per cent YoY for Q3 FY24. This can be attributed to the rollback of increased transaction charges effective April 1, 2023.

On a standalone basis, NSE reported total operating income of Rs. 3,170 crores for Q3 FY24, marking a commendable 21 per cent year-on-year growth from Rs. 2,629 crores in the corresponding quarter last year. Total expenses incurred during this quarter amounted to Rs. 1,620 crores, with nearly half of these expenses, Rs. 810 crores, allocated towards SEBI Regulatory Fees, additional contributions to Core SGF as per SEBI's directives, and Contribution to IPFT.

In the nine months of FY24, NSE has made an additional contribution of Rs. 1,167 crores to bolster the Core Settlement Guarantee Fund corpus, in alignment with SEBI's target to raise it to Rs. 10,000 crores from the current level of approximately Rs. 5,000 crores.

At the operating EBITDA level, NSE reported a standalone EBITDA margin of 52 per cent for Q3 FY24, compared to 73 per cent in the corresponding quarter last year. The standalone net profit for Q3 FY24 stood at Rs. 1,377 crores, showcasing a marginal decrease from Rs. 1,568 crores in the corresponding quarter last year, with the standalone net profit margin at 40 per cent.

During the nine months of FY24, NSE contributed significantly to the exchequer, totaling Rs. 28,131 crores, comprising STT (Rs. 23,137 crores), Income tax (Rs. 1,490 crores), Stamp duty (Rs. 1,456 crores), GST (Rs. 1,257 crores), and SEBI charges (Rs. 791 crores). Notably, around 83.75 per cent of the annual budget estimates of the Government of India related to STT have been collected during the nine months of FY24, indicating the exchange's substantial contribution to the government's revenue. STT accounts for approximately 1.57 per cent of the direct tax collection made by the Government of India for the first nine months of the current financial year 2023-24.

Disclaimer: The article is for informational purposes only and not investment advice.