MCX Shares Tumble Over 9% After Reporting Surprise Q3 Loss

Multi Commodity Exchange of India Ltd.'s shares plunged the most in seven months after the bourse reported a surprise loss in the third quarter.

The company reported a loss of Rs 5.4 crore in the quarter ended December compared with a profit of Rs 38.8 crore a year ago, according to an exchange filing on Saturday. An average of analyst estimates compiled by Bloomberg had forecast a net profit at Rs 1.1 crore.

The loss narrowed from Rs 19.1 crore in the preceding quarter.

(Consolidated, YoY)

• Revenue from operations rose 33% to Rs 191.5 crore (Bloomberg estimate: Rs 179.5 crore)

• Operating losses of Rs 19.7 crore vs an operating profit of Rs 32.7 crore (Estimate: Rs 16.8 crore operating loss)

(Consolidated, QoQ)

• Revenue from operations rose 16% to Rs 191.5 crore (Estimate: Rs 179.5 crore)

• Operating loss of Rs 19.7 crore vs. operating profit of Rs 28.7 crore (Estimate: Rs 16.8 crore operating loss)

• Net losses of Rs 5.4 crore vs. Rs 19.1 crore. (Estimate: Rs 1.1 crore net profit)

"Negative Ebitda was mainly on account of payment made to technology vendor and contribution to SGF (settlement guarantee fund)," the company said in the filing.

The scrip rose fell as much as 9.53 to Rs 4,627.55 apiece, the most since June 30, 2023. It was trading 9.32% lower as of 12:31 p.m. compared with a 0.52% decline in the NSE Nifty 50 Index.

The stock has risen 145.5% in the last 12 months. The total traded volume so far in the day stood at 2.9 times its 30-day average. The relative strength index was at 51.95.

Of the 10 analysts tracking the company, five maintain a 'buy' rating, two recommend 'hold', and three suggest 'sell,' according to Bloomberg data. The average of 12-month analyst price target implies a downside of 14.1%.