The National Stock Exchange (NSE) on Monday reported a 57% year-on-year jump in its consolidated net profit to Rs 3,137 crore for the September quarter as higher expenses were partially offset by a reduction in additional contribution to the core settlement guarantee fund (SGF).
Consolidated revenue rose to Rs 5,023 crore for the reporting quarter, from Rs 4,950.30 crore, marking a growth of 25% YoY. The top line included revenue from clearing and listing services, data centre and connectivity charges as well as index and data services.
On a standalone basis, the exchange reported a net profit of Rs 2,954 crore, compared with Rs 1,804 crore a year earlier. Total income stood at 5,297 crore in Q2 FY25, marking a growth of 35% YoY.
Expenses, which included settlement fees of Rs 643 crore paid to SEBI in a trading access point matter, doubled to nearly Rs 1,730 crore. Expenses were brought down to Rs 1,303 crore due to a reversal of provision for additional voluntary contribution towards core SGF, the exchange said.
In May, SEBI had advised the NSE and its subsidiary NSE Clearing (NCL) to increase core SGF for the subsidiary’s F&O segment to Rs 10,500 crore, following which the exchange had made a provision of Rs 500 crore.
“NCL assessed the adequacy of fund and additional contribution requirement from NSE as on September 30, 2024, pursuant to which, NCL found fund/reserves available with itself sufficient to meet SEBI requirement and no additional contribution would be needed from NSE,” the stock exchange said in its regulatory filings. “Considering the assessment, NSE has reversed the additional voluntary contribution of Rs 500 crore provided earlier in the financial results for the quarter ended September 30, 2024.
SGF is maintained by clearing houses to guarantee the settlement of trades executed on the stock exchange. This fund is used to cushion any risk of default from any clearing member, without affecting the normal settlement process.
For the half year ended September, the exchange reported total income of Rs 9,974 crore, up 35% on year. The consolidated net profit rose 48% year-on-year to Rs 5,704 crore. The company also issued bonus shares in the ratio of 4:1.
The cash markets recorded an average daily traded volumes of Rs 1,29,194 crore during the September quarter, while equity futures and options (premium value) reached Rs 2,01,547 crore and Rs 65,648 crore, respectively.
The exchange contributed Rs 30,130 crore to the exchequer in the first half of FY25, comprising STT (securities transaction tax)/CTT (commodities transaction tax) of Rs 24,755 crore, stamp duty of Rs 2,099 crore, SEBI fees of Rs 1,333 crore, income tax of Rs 1,119 crore and GST of Rs 824 crore.