National Stock Exchange of India (NSE) reported an 8 per cent rise in consolidated profit for the March quarter, driven by strong growth in equity derivatives trading as the exchange moves closer to its long-awaited stock market listing.
Profit after tax for the quarter ended 31 March stood at Rs 2,871 crore, compared with Rs 2,650 crore in the year-ago period.
Total income increased 22 per cent year-on-year to Rs 5,360 crore, supported by higher trading activity across equity options and cash market segments.
Revenue from transaction charges rose 39 per cent to Rs 4,077 crore during the quarter, with equity options continuing to remain the largest contributor to transaction revenue.
The results come at a time when the NSE is preparing for its proposed initial public offering after clearing key regulatory hurdles earlier this year.
India’s market regulator has allowed the exchange to proceed with its IPO through an offer-for-sale route by existing shareholders, following years of delays linked to governance-related investigations and litigation.
The exchange, currently India’s largest unlisted company by investor base, has also constituted a committee to oversee listing-related matters, signalling progress towards what could become one of the country’s largest public offerings.
Total expenses for the quarter increased 32 per cent year-on-year to Rs 1,486 crore, mainly due to higher provisions.
This included Rs 223 crore earmarked towards corporate social responsibility spending and Rs 84 crore linked to pending settlement applications with the regulator.
The board recommended a final dividend of Rs 35 per equity share, including a one-time special dividend of Rs 10, subject to shareholder approval.