BSE Q1 Results Highlights: Reports 3x Profit Surge to ₹265 Cr

BSE Q1 Results Highlights

On Wednesday, leading stock exchange BSE reported a more than threefold increase in net profit, reaching ₹265 crore for the quarter ending June 2024, compared to ₹75 crore in the same quarter of the previous fiscal year. This announcement was made in a statement by BSE.

The exchange achieved its highest-ever quarterly financial performance with a revenue of ₹674 crore in the April-June quarter of FY25, up from ₹271 crore in the same period last year.

BSE experienced a robust quarter, with a 24% increase in revenue compared to the March quarter of the previous year, totaling ₹607.7 crore. This growth was primarily driven by a 45% quarter-on-quarter rise in transaction charges, which amounted to ₹366.3 crore.

"We have concluded the first quarter on a strong note, with every business line contributing to both revenue and profitability. This outcome underscores the strength of our proposition, enhancements to our products, and the depth of our customer relationships," stated BSE MD and CEO Sundararaman Ramamurthy.

The average daily turnover in the equity cash segment for Q1 FY25 was Rs 9,006 crore, up from Rs 4,025 crore in the corresponding quarter of the previous year. A 7.6% increase in treasury income and a 16.4% rise in other securities services also boosted BSE's revenue for the quarter.

One of the quarter's key highlights was the 25 percentage points increase in BSE's EBITDA margin, which rose to 47% from 19.7% in the March quarter. This margin expansion was due to a 53% reduction in SEBI regulatory fees and a 5% decline in administrative and other expenses.

In other earnings metrics, BSE's net profit for the quarter was ₹265 crore, up from ₹107 crore in the March quarter. EBITDA more than doubled from March, reaching ₹284 crore from ₹96 crore.

Impact on BSE Share Price Post Q1 Results

Following the June quarter results announcement after market hours on Wednesday, shares of BSE opened with gains exceeding 10% on Thursday.

BSE entered the single stock derivatives market on July 1, 2024, with a mid-month expiry on the second Thursday of each month. To date, 155 members have participated in single stock futures, and 35 in single stock options.

The exchange was required to pay regulatory fees to SEBI based on the annual turnover calculated from the "notional value" of options contracts rather than the "premium value." BSE had provisioned ₹170 crore for regulatory fees in the financial year 2024.

Currently, BSE shares are trading 7% higher at ₹2,567. Despite this, BSE shares have underperformed recently, having declined over 30% from a peak of over ₹3,200. The stock has remained flat over the past month and is up 9% year-to-date in 2024.

About Bombay Stock Exchange Ltd 

BSE Ltd (BSE) is a stock exchange company that facilitates trading in equity, debt instruments, derivatives, and mutual funds. Additionally, it offers a range of services to capital market participants, including risk management, clearing and settlement, market data services, and education. BSE's product portfolio encompasses pension plans, insurance, mutual funds, and various other financial products. 

In its secondary market services, BSE includes treasury bills, government securities, corporate bonds, certificates of deposit, and commercial paper. The company also provides depository services through its subsidiary, Central Depository Services Ltd. (CDSL). BSE is headquartered in Mumbai, Maharashtra, India.