NSE Q3 Results: Profit Falls 37% YoY to Rs 2,408 Crore
Leading exchange NSE experienced a noteworthy decline in its financial performance for the third quarter. The consolidated net profit for Q3 dropped by 37% year-on-year (YoY) to Rs 2,408 crore, while total income decreased by 9% YoY to Rs 4,395 crore.
Financial Highlights
– Profit After Tax:
– Decreased 37% YoY to Rs 2,408 crore
– Increased 15% sequentially
– Total Income:
– Fell 9% YoY to Rs 4,395 crore
– Increased 6% sequentially
– Operating EBITDA:
– Dropped 16% YoY to Rs 2,851 crore
– Margin reduced to 73%
The results mark the first financial report from NSE since obtaining the Securities and Exchange Board of India’s (Sebi) No Objection Certificate for its upcoming IPO.
Key Revenue Insights
The decline in revenue growth during the quarter was primarily impacted by lower transaction charges, which fell 12% YoY to Rs 3,033 crore. However, there were positive developments in specific segments:
– Transaction Revenue:
– Increased 9% quarter-on-quarter, driven by rising volumes in the equity cash market and derivatives segments.
– Data Feed and Terminal Services:
– Grew 17% YoY to Rs 121 crore.
– Listing Services:
– Increased 11% YoY to Rs 111 crore.
Upcoming IPO Details
NSE has recently received approval from Sebi to launch its IPO, ending a decade-long wait for regulatory approval. This IPO is expected to be primarily an Offer for Sale (OFS) and is likely to launch within the next 7-8 months.
– A specialized committee is set to be established to oversee the listing process.
– This group will define procedures and determine the qualifications for appointing merchant bankers and legal advisors for drafting the Red Herring Prospectus (DRHP).
– Analysts estimate the IPO will be among the most significant in India’s capital markets, valuing NSE at over Rs 5 lakh crore in the grey market.
Leadership Perspectives
NSE MD and CEO Ashish Chauhan expressed optimism about the IPO approval, calling it a powerful signal of value creation for stakeholders. Srinivas Injeti, Chairperson of NSE, highlighted the approval as a testament to NSE’s importance in the Indian economy and capital markets.
In conclusion, while NSE’s Q3 results indicate a significant drop in profits, the forthcoming IPO presents an opportunity for recovery and growth. As the exchange gears up for this pivotal event, its ability to adapt and respond to market demands will be crucial in redefining its future trajectory.