MCX Q4 Review - Lower Costs To Give Margin Lift: ICICI Securities
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MCX Q4 Review - Lower Costs To Give Margin Lift: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Three key takeaways from Multi Commodity Exchange of India Ltd.'s FY21 result concall were:

  1. significantly lower software costs under the new contract with Tata Consultancy Services Ltd., partially offset by higher depreciation;
  2. some of the cost savings achieved in FY21 may be sustainable; and
  3. management positivity around the expected new gold exchange.

Not only does the management expect gold futures volumes to be sustained, it also believes the company has a ‘right to win’ from any new gold exchange initiative.

Reduction in costs results in an upgrade in our operating earnings for FY23E.

Click on the attachment to read the full report:

ICICI Securities MCX Q4FY21 Result Update.pdf

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