In This Article:
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BSE Ltd (NSE:BSE) recorded its highest ever quarterly revenues of INR 835.4 crores, up 94% compared to the previous year.
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Operational revenues grew by 198% to INR 773.5 crores, driven by strong performance in transaction-related income and treasury income.
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The mutual fund distribution business, BSE Star MF, achieved record revenues, up 92% year-on-year, processing 17.99 crore transactions.
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BSE welcomed 30 new listings, raising a record INR 95,512 crores, up 61% year-on-year, indicating a healthy IPO pipeline.
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The company is committed to upgrading its trading systems to enhance trading experience and risk management capabilities.
Negative Points
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Operating expenses grew by 86% to INR 567 crores, with a significant portion attributed to contributions to the core settlement guarantee fund.
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The equity cash market share has not shown significant improvement despite efforts to increase traction.
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The number of contracts traded in the derivatives segment has declined, impacting overall trading volumes.
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There is uncertainty regarding the future impact of regulatory changes on the clearing and settlement business.
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The single stock derivative segment has yet to pick up meaningful volumes, with limited member participation.
Q & A Highlights
Q: Post the implementation of SEBI recommendations, what has been the loss in trading volume of Bank contracts and the increase in trading volume of C6? Also, could you expand on the nature of the core SGF contribution and its future outlook? A: The overall volumes in Bank contracts have significantly fallen by around 95%. However, C6 volumes have remained stable and are showing an increasing tendency. Regarding the core SGF, SEBI's new methodology has increased the minimum required corpus significantly. The net core SGF requirement for this quarter was around INR 199 crores, with contributions from ICCL and BSE. Future contributions will depend on various factors, including market conditions and regulatory changes. Unidentified_2
Q: How should we look at the core SGF contributions going forward? Will they be regular or sporadic? Also, what is the outlook for the clearing and settlement business amid regulatory changes? A: Core SGF contributions are difficult to predict due to their dependence on multiple factors, including market volatility and regulatory requirements. The recent jump in contributions is due to a new methodology, and future increases may be more gradual. Regarding clearing and settlement, regulatory changes aim to make clearing corporations independent, which could impact revenue streams. However, it's too early to predict the exact impact. Unidentified_2