MCX share price plunges 9% on weak Q3 results; here's what the analyst says | Mint
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Business News/ Markets / Stock Markets/  MCX share price plunges 9% on weak Q3 results; here's what the analyst says
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MCX share price plunges 9% on weak Q3 results; here's what the analyst says

MCX share price plunges more than 9% on weak Q3 results, reporting a net loss of ₹5.3 crore. MCX share price opens at ₹3,728.05 apiece on BSE today, touching an intraday low of ₹3,460.80.

MCX share price today opened at ₹3,728.05 apiece on BSE today. Premium
MCX share price today opened at 3,728.05 apiece on BSE today.

Multi Commodity Exchange of India (MCX) share price plunged more than 9% during Monday's trading session following the bourse's weak Q3 results. MCX posted a net loss for the December quarter. MCX share price today opened at 3,728.05 apiece on BSE today. Multi Commodity Exchange of India share price touched an intraday low of 3,460.80 and a low of 3,784.45.

MCX reported a net loss of 5.3 crore down from a net profit of 39 crore during the same time last year.

In the quarter ending in July–September, the biggest exchange in India's commodities derivatives market segment reported a net loss of 19.07 crore.

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Its revenue from operations increased by 33% to 191.5 crore from 143.6 crore during the same period the previous year.

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According to Rajesh Bhosale, Equity Technical and Derivative Analyst, Angel One, MCX share prices have had a strong rally in the last couple of months; however, we are seeing strong profit booking in today's session with prices down around 7. Overall trend is up, but as of now momentum is gripped by the bears, further profit booking may be considered a long-term opportunity. 3,350 is the support, whereas 3,800 is the resistance.

In their analysis, ICICI Direct Research highlighted that MCX continued to record strong increase in revenue and, thereby, topline. Lead by greater turnover in bullion, the average daily turnover (ADTO) in the futures market grew 10.8% QoQ to 18763 crore.

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The options market continued to gain momentum, with ADTO increasing by an average of 11.7% every quarter. Operational revenue rose 16% on a quarterly basis to 191.5 crore, while other revenue was relatively stable at 17.7 crore. Higher top-line revenue was however countered by higher software costs of 125 crore, which led to a Re 1.2 crore EBITDA loss and a 5.35 crore net loss.

“Revenue momentum has seen some interim moderation given the impact of few OTT apps going behind paywall. We expect digital monetisation to provide sustained growth momentum along with new releases which should drive strong revenues from FY25 onwards," said ICICI Direct Research in its report. 

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

 

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Published: 12 Feb 2024, 02:12 PM IST
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