BSE Q1 net profit grows 11x to Rs 440 crore on CDSL stake sale

BSE's revenue from operations in the quarter increased by around 16 percent year-on-year to Rs 215.62 crore.

Bombay Stock Exchange on August 9 reported consolidated net profit of Rs 440 crore for the quarter ended June 2023. This is 11 times the exchange's net profit of Rs 40 crore reported in the same quarter last year.

During Q1 FY24, BSE had divested 5 percent stake in its associate company Central Depository Services (India) Limited to meet the requirement of SEBI directives.

The profit on divestment amounting to Rs 406.62 crore has been shown as an exceptional item, thus giving a boost to the bottom line. Excluding exceptional item, net profit grew 82 percent to Rs 72.6 crore.

Meanwhile, BSE's revenue from operations in the quarter increased by around 16 percent year-on-year to Rs 215.62 crore. The exchange's expenses jumped 11.6 percent YoY to Rs 173.4 crore.

During the quarter, BSE took a fresh stab at reviving F&O segment with weekly options. It reduced the lot size for Sensex F&O contracts to 10 from 15 earlier. For the Bankex index, the lot size was changed to 15, instead of 20 earlier. Contracts for both now expire on Fridays, instead of Thursdays.

Following this, the exchange has seen a healthy uptick in trading volumes. Average daily turnover in the equity derivatives segment now stands at Rs 32.81 lakh crore. BSE shares notional value of turnover.

For the StAR mutual fund platform, number of orders received grew 39 percent YoY to 8.3 crore in Q1 FY24 while revenue grew by 59 percent YoY to Rs 23.8 crore.

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BSE's Q1 result comes two weeks after NSE's. For the quarter ended June,  National Stock Exchange reported a consolidated net profit of Rs 1,844 crore, up by 9 percent YoY.

Along with the results, BSE also announced that has initiated the process for voluntary winding up of BSE CSR Integrated Foundation (BCIF), a wholly owned subsidiary of BSE Limited which was set up on March 7, 2016.

The voluntary winding up process shall be initiated after completion of the ongoing projects undertaken by BCIF.

Furthermore, the exchange's chief financial officer Nayan Mehta was re-designated as chief - special projects with effect from September 11, 2023.  Consequently, Deepak Goel was appointed as chief financial officer, said BSE.

The stock closed at Rs 920.70 on the NSE on August 9, higher by 4.32 percent from previous close.