MCX Q3 Results Review - Contribution To SGF Hits Profitability: Motilal Oswal

Motilal Oswal Report

Multi Commodity Exchange of India Ltd. reported a loss of Rs 54 million, higher than our anticipated loss of Rs 37 million. Despite this, overall volumes improved significantly, rising by 81% YoY to Rs 74 trillion. Total revenue came in at Rs 1.92 billion, registering a growth of 33% YoY (~8.5% beat).

Overall Ebit loss came in at Rs 310 million versus our anticipated loss of Rs 236 million (~30.9% miss). This variance can be largely attributed to contribution to settlement guarantee fund of Rs 131 million in Q3 FY24.

For nine month FY24, revenue increased 40% YoY to Rs 5.02 billion, whereas the company reported a loss of Rs 48 million as compared to a profit after tax of Rs 1.4 billion in nine month FY23.

We have raised our FY25 and FY26 earning per share estimates to factor in stronger volume trajectory and higher-than-forecasted non-transaction revenues. On the other hand, we are building in sustained addition to SGF.

We reiterate our 'Neutral' rating with a one-year target price of Rs 3,950 (premised on 35 times FY26E EPS).

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