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News: MCX reported loss, as anticipated owing to higher software expense, however, traction in option turnover continued to remain strong. Average Daily Turnover (ADT) in futures declined from Rs23917 crore in Q2FY23 to Rs21413 crore in Q1FY24 and further at Rs18763 crore in Q2FY24. However, ADT in options continued to grow at a robust pace at Rs85873 crore compared to Rs31381 crore. Resultantly, revenue was up 26% YoY to Rs184 crore. Botton-line remained in red at loss of Rs19 crore, owing to near term elevated software expense.
Views: Q2FY24 remains a one-off quarter. Continued robust traction in option volume, new product introduction and normalisation of expense from Q4FY24 onwards should aid earnings growth.
Impact: Neutral