India's premier stock exchange, NSE, reported a year-on-year (YoY) increase of 13% in its consolidated net profit for Q2 FY24, reaching ₹1,999 crore ($26.9 billion), with a net profit margin of 50%. The boost was largely driven by a surge in various revenue streams such as trading revenue, clearing services, listing services, index services, data services, colocation services, and SEBI turnover fees.
The consolidated revenue from operations for the same period soared by 24% YoY to ₹3,652 crore. This growth was further bolstered by contributions from securities transaction tax (STT), stamp duty, goods and services tax (GST), and income tax.
The earnings per share (EPS) also saw a significant increase during this period. EPS rose to ₹40.38 in Q2 FY24 from ₹35.83 in the same quarter the previous fiscal year. Meanwhile, cash markets recorded an average daily traded volumes (ADTVs) of ₹77,757 crore, marking a 40% YoY surge.
On a standalone basis, NSE's total operating income demonstrated a 22% YoY growth to ₹3,386 crore. The net profit for Q2 FY24 stood at ₹1,562 crore, reflecting a modest 2% YoY increase. However, standalone total expenses escalated considerably to ₹1,623 crore, up 135% YoY with substantial contributions to Investor Protection Fund Trust (IPFT), core Settlement Guarantee Fund (SGF), and Securities and Exchange Board of India (SEBI).
The operating EBITDA margin for Q2 FY24 was recorded at 54%, compared to 78% in Q2 FY23. Despite the decrease in operating EBITDA margin, NSE retains its position as the world's largest derivatives exchange and ranks third globally in cash equities. The exchange also continues to offer financial education and oversees compliance by trading and clearing members.
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