BSE Q2 Results: Net earnings jump to Rs 118.41 crore, a four-fold increase

 BSE Q2 Results: Net earnings jump to Rs 118.41 crore, a four-fold increase

Revenue from the stock exchange increased by 59.06 percent year over year to Rs 314.51 crore from Rs 197.72 crore the year before.

For the quarter that concluded in September, the Bombay Stock Exchange (BSE) reported a net profit of Rs 118.41 crore, more than four times more than its net profit of Rs 29.39 crore for the same period the previous year.

Revenue from the stock exchange increased by 59.06 percent year over year to Rs 314.51 crore from Rs 197.72 crore the year before.

Operating EBITDA for BSE increased from Rs 13.4 crore to Rs 141.7 crore in the prior year. Operating EBITDA margin for the exchange rose from 7% in the prior September quarter to 45%.

The exchange's costs for this quarter, at Rs 204.03 crore, were the same as those for the previous year, September FY23, when they were Rs 203.94 crore. Because of a decrease in regulatory and clearing charges, which fell to Rs 35.8 crore from Rs 63.7 crore the year before, expenses stayed the same.

Since reintroducing the weekly index options for the Sensex and Bankex in May, which now account for almost all of BSE futures trading, the BSE has been significantly increasing its market share in the derivatives space. Instead of trading monthly options, investors may now trade weekly expiry options contracts thanks to these financial derivatives.

The market share of BSE's equity derivatives increased from 0% in May to 7.4% in September. Without any plans to improve liquidity, the expiration day market share is much larger and increasing at a rate of 11% annually. By September 2023, the average daily turnover per option contract had reached Rs 26 lakh crore. In September 2023, the average daily turnover increased to 3.98 contracts.

On October 9, the exchange also launched options on futures contracts for basic metals (copper, zinc, and aluminum) and energy (WTI and Brent oil).

Prior to the release of the results, BSE shares had increased by 3.34 percent. On November 10, the shares ended at Rs 2,029 at the closing.