MCX posts 29% drop in net profit

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MCX has posted a 29.47% drop in its consolidated net profit at Rs 39.80 crore in the first quarter of the current fiscal. It had posted a net profit of Rs 56.43 crore in the same quarter previous fiscal. Income declined to Rs 108.94 crore in the first quarter of the 2021-22 fiscal from Rs 122.70 crore in the same quarter previous year. Expenses remained higher at Rs 57.47 crore as against Rs 51.35 crore in the said period.

“Based on current assessment, the management is of the view that impact of Covid-19 on the operations of the group and the carrying value of its assets and liabilities is minimal,” it said.

Notable points

With regard to a dispute with a software vendor that was to develop a trading system for the spot market, MCX said, “…the holding company and the software vendor are in the final stages of reaching an amicable out of court resolution whereby the holding company would be provided the rights to the trading software on the payment of the outstanding invoices.”

It has also extended the pause on the Singapore International Arbitration Centre (SIAC), the exchange said.

Further, MCX is also exploring other third-party readymade solutions for the spot platform, it added.

Management speak

In the first quarter of this fiscal, MCX said its average daily turnover (ADT) of commodity futures contracts traded on on its platform increased by 21% to Rs 28,031 crore from Rs 23,129 crore in the year-ago period.

Total quantity of 22,863 tonne of base metals was delivered during the first quarter of the current fiscal vis-à-vis 21,028.5 tonne in the year-ago period through the exchange mechanism, it added.

MCX’s market share in commodity futures turnover stood at 92.6% in the first quarter of the 2021-22 fiscal.