- 22 May 2023
- ICICIdirect Research
MCX CONTINUES PICK-UP IN OPTION VOLUMES. ANTICIPATED ELEVATED SOFTWARE EXPENSE MAR EARNINGS
MCX - 6493 Change: 122.50 (1.92 %)News: Operating revenue grew 25.6% YoY (de grew 6.8% QoQ) at Rs 133.8 crore. Other income registered growth of 37.7% YoY and stood flat QoQ at Rs 20.1 crore. Opex grew 3x on YoY basis and increased 23.1% QoQ at Rs 108.3 crore. Software related expenses jumped 4.9x YoY and 1.3x QoQ to Rs 87.4 crore. Thus, PAT came in at Rs 5.4 crore, declined significantly (~85% both YoY and QoQ) mainly due to elevated software related opex during the quarter. Futures segment continued to witness declining trend in ADTO (Average Daily Turnover) with volume at Rs 20632 crore in Q4FY23 vs Rs 26369 crore in Q4FY22 and Rs 24266 crore in Q3FY23. Options continued to witness a robust growth (~3x YoY / 16% QoQ) with ADTO reported at Rs 45710 crore in Q4FY23 vs. Rs 15065 crore in Q4FY22 and Rs 39402 crore in Q3FY23.
View: Continued traction in options volume drive top-line growth. However, delay in development of new commodity platform and consequent elevated software related opex remains an overhang on the stock which seems to be factored in current stock price. Status on migration to new software remains key watchful.
Impact: Neutral