National Stock Exchange posts strong Q4 results, profit up 20% at Rs 2,488 crore

NSE financial performance: National Stock Exchange (NSE) has announced robust financial results for the fourth quarter of FY24, with a significant increase in both net profit and revenue. The exchange reported a consolidated net profit of Rs 2,488 crore for the quarter ended March, marking a substantial 20 per cent rise compared to the same period last year.

The revenue from operations for the quarter stood at Rs 4,625 crore, 34 per cent increase from the corresponding period last year. This growth was primarily driven by various revenue streams, including trading revenue, data centre, and connectivity charges, clearing services, listing services, index services, and data services.

Trading activity also witnessed a substantial surge during the quarter, with the cash market recording an average daily traded volume (ADTV) of Rs 1.11 lakh crore, marking a remarkable 127 per cent increase year-on-year. Similarly, ADTV for equity futures stood at Rs 1.79 lakh crore, representing a 60 per cent increase, while ADTV for equity options (premium value) reached Rs 75,572 crore, up by 27 per cent compared to the same quarter last year.

On a standalone basis, NSE reported a net profit of Rs 1,856 crore for Q4 FY24, reflecting a modest 2 per cent increase from the corresponding quarter of the previous fiscal year.

Total expenses for the quarter amounted to Rs 1,926 crore, with 46 per cent allocated towards SEBI regulatory fees, additional contributions to Core SGF, and contribution to IPFT. The corpus of Core SGF as of March 31, 2024, stood at Rs 8,819 crore.

For the entire fiscal year FY24, NSE reported a consolidated net profit of Rs 8,306 crore, while the standalone net profit stood at Rs 6,393 crore.

In light of the strong financial performance, the NSE Board has recommended a dividend of Rs 90 per share (pre-bonus) for the year ending FY24, amounting to a payout of Rs 4,455 crore. Additionally, the board has proposed the issuance of four bonus shares for every existing share held, subject to approval.

Furthermore, NSE made a significant contribution to the exchequer in FY24, amounting to Rs 43,514 crore, with STT/CTT paid accounting for Rs 34,381 crore and SEBI charges amounting to Rs 1,157 crore. Notably, 60 per cent of the STT was from the cash market, while 40 per cent was from the equity derivatives segment.

NSE also announced an additional contribution of Rs 1,741 crore, and NCL made an additional contribution of Rs 1,400 crore to augment the Core Settlement Guarantee Fund corpus to Rs 10,000 crore as desired by SEBI. The core SGF corpus as of March 31, 2024, stands at Rs 8,819 crore, indicating proactive measures to strengthen risk management mechanisms.