National Stock Exchange (NSE) Surpasses $1 Billion Profit Milestone, Recommends 4:1 Bonus Issue

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The National Stock Exchange (NSE) has achieved a significant milestone by surpassing the $1 billion profit mark, with its consolidated profit after tax reaching over Rs 8,300 crore in the fiscal year 2023-2024. This achievement is notable considering the substantial increase in total expenses, which rose by 90 percent year-on-year to Rs 5,350 crore compared to Rs 2,812 crore in the previous fiscal year.

Despite the increased expenses, NSE’s profitability soared, underscoring its resilience and efficiency in navigating market challenges. Reflecting its commitment to shareholders, the company’s board recommended a 4:1 bonus issue, indicating confidence in its future growth trajectory. Additionally, a dividend of Rs 90 per share (pre-bonus) for the fiscal year ended 2023-24 was proposed, amounting to a substantial payout of Rs 4,455 crore.

During FY24, NSE made significant contributions to the exchequer, totaling Rs 43,514 crore. This comprised Securities Transaction Tax (STT) of Rs 34,381 crore, income tax of Rs 3,275 crore, stamp duty of Rs 2,833 crore, GST of Rs 1,868 crore, and Sebi charges of Rs 1,157 crore. Notably, 60 percent of the STT revenue was generated from the cash market segment, with the remaining 40 percent from the equity derivatives segment.

As of March 31, 2024, NSE’s net worth stood at an impressive Rs 23,974 crore, reflecting its robust financial position. Total expenses in Q4FY24 amounted to Rs 1,926 crore, with 46 percent allocated towards SEBI regulatory fees, additional contributions to Core SGF, and contributions to IPFT. The core SGF corpus as of March 31, 2024, stood at Rs 8,819 crore, highlighting NSE’s commitment to maintaining financial stability and resilience.

In terms of market performance, the cash market witnessed a notable surge, with average daily traded volume (ADTV) increasing by 127 percent year-on-year to Rs 1.11 lakh crore in the quarter ended March 2024. Similarly, ADTV for equity futures rose by 60 percent to Rs 1.79 lakh crore, while ADTV for equity options (premium value) climbed by 27 percent to Rs 75,572 crore in Q4FY24.

Overall, NSE’s stellar financial results, coupled with its strategic initiatives and market performance, underscore its position as a leading player in the financial landscape, poised for sustained growth and value creation in the future.

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