BSE Sep quarter net falls 4% to Rs55.5 cr

BSE Sep quarter net falls 4% to Rs55.5 cr
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First Published: Mon, Dec 07 2009. 10 05 PM IST
Updated: Mon, Dec 07 2009. 10 05 PM IST
Mumbai: The Bombay Stock Exchange (BSE) made more money from its investments than operations in the quarter ended 30 September.
The exchange’s profit after tax in the second quarter dropped 3.96% to Rs55.48 crore from Rs57.77 crore a year ago. Its pretax profit, however, rose 21.6% to Rs82.89 crore from Rs68.14 crore earlier.
In the year-ago period, BSE provided Rs9.4 crore for taxation but in quarter under review, it set aside thrice that amount, Rs27.41 crore.
“Provision for tax has been made as per the management’s estimate of annual effective tax rate, calculated based on (the) annual revenue budget of the company,” BSE said in a statement.
Another big drag was a 110% increase in depreciation, to Rs15.96 crore.
Computer technology-related expenses also rose as the exchange ended an agreement with the Nasdaq OMX group. BSE recently acquired Marketplace Technologies Ltd to take care of its information technology needs.
“Computer technology related expenses include Rs10.71 crore, being technical fee paid in advance by the exchange to an overseas software vendor for improvements in the trading, clearing and settlementsystems,” BSE said. The amount had been charged off after adjusting Rs1.69 crore refunded by the software vendor, it added.
Income from investments and deposits was the biggest contributor to profits at Rs77.73 crore, a growth of 55% year-on-year. Income from trading members raked in Rs39 crore.
K.R. Choksey, a senior BSE broker and shareholder said, “BSE is making more money from treasury. That is because it is not able to improve its turnover. NSE (National Stock Exchange) had the first mover advantage in derivatives and it has given them the edge.”
BSE in May had appointed Madhu Kannan, former managing director (corporate strategy) of Bank of America-Merrill Lynch and based in New York, as its chief executive and managing director to revive the exchange.
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First Published: Mon, Dec 07 2009. 10 05 PM IST