An employee arranges two hundred and fifty gram gold bars. (Photographer: Akos Stiller/Bloomberg)

Q4 Results: MCX Expects Margin To Improve This Fiscal

Multi Commodity Exchange of India Ltd. expects its margin to pick up in fiscal year 2019-20 after it saw a 70-basis-points dip in the March-ended quarter on a yearly basis.

While the fixed cost base of the exchange will remain within the range seen over the last few years, “for every Rs 100 in revenue, roughly Rs 80 is the net of all variable costs which straight away goes into our margin”, the company’s Managing Director and Chief Executive Officer Mrugank Paranjpe said. “We have a healthy rate of marginal incremental revenue we receive and thus margin should improve next year as we see a similar trend in volumes.”

Double-digit growth, he said, has helped the company expand its operating margin.

The independent commodity exchange’s average daily futures turnover for bullion was back at its pre-demonetisation level of Rs 6,684 crore.

The company registered a 78.6 percent rise in its revenue to Rs 61 crore in the January-March period on a yearly basis, while its revenue was up 12 percent to Rs 79.1 crore.

Other Highlights, (Year-on-year)

  • Net profit up 78.4 percent to Rs 61 crore.
  • Ebitda up 9.6 percent to Rs 25.1 crore.
  • Margins at 31.7 percent versus 32.4 percent
  • Other income up 22 percent at Rs 31.7 crore
  • It also declared a dividend of Rs 20 apiece.

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