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Home / Companies / MCX reports 45% drop in March quarter profit at Rs27.10 crore

Mumbai: Multi Commodity Exchange of India (MCX) on Thursday said it reported a 45% drop in March quarter profit to 27.10 crore, mainly due to a one-time loss related to its investment in Metropolitan Stock Exchange of India (MSEI).

The company had reported a net profit of 49.30 crore for the three months ended 31 March 2015.

Total income from operations increased to 55.59 crore for the March quarter, compared with 53.69 crore in the year-ago period, the company said in a filing to the BSE.

The company reported 1.64 crore one-time loss for the March quarter.

“The aggregate loss, diminution and provision of 5,940.20 lakhs on account of the investments in MSEI are exceptional in nature and were accordingly disclosed in the financial results for the quarter ended June 30, 2015. Further provision of 164.33 lakh has been made in quarter ended March 31, 2016 towards equity shares investments as per company’s accounting policy," MCX said in its filing.

MCX held 400 million warrants in MSEI estimated worth more than 40 crore.

MSEI was required to adjust its shareholding pattern so as to bring it within the limits prescribed by the Securities and Exchange Board of India (Sebi) regulations by 19 June 2015.

“However, the sale of warrants was impacted by several factors that reduced the marketability of MSEI’s warrants, such as consistently reducing market share and net worth which reduced the value and demand for MSEI’s shares and warrants," the company said, adding that it made it difficult to dispose of the warrants.

On a consolidated level, the company’s net profit for fiscal 2016 stood at 42.39 crore as against 125.40 crore in fiscal 2015.

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