Multi Commodity Exchange (MCX) has reported a 47 per cent drop in its December quarter net profit at ₹19 crore (₹34 crore) due to a fall in trading volume.

Income decreased 12 per cent to ₹61 crore (₹69 crore) while profit before tax almost halved to ₹26 crore (₹46 crore).

The other income, comprising primarily treasury revenue, fell 36 per cent to ₹16 crore due to a steep rise in bond yields, impacting the investment income.

The average daily turnover in the country’s largest commodity exchange decreased 4 per cent to ₹20,229 crore. The average daily turnover in the recently launched commodity options during the quarter was ₹140 crore.

Mrugank Paranjape, Managing Director, MCX, said the low volatility in gold prices during the quarter led to a 29 per cent decrease in bullion volume. This apart, the rise in bond yield affected investment gains, resulting in a fall in investment income.

The successful completion of gold options settlement paves the way to seek regulatory approval from more options contracts while the exchange engages with regulators and market participants to increase liquidity in the product, he added.

As committed, the exchange continues to exercise control on operating costs, which remained at the same level as the previous quarter despite factoring in expenses incurred towards the launch of options and other member engagement activities, he said.

Shares of the exchange were down 4 per cent at ₹896 on Tuesday.

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