India’s largest commodity derivatives exchange, Multi Commodity Exchange of India Ltd (MCX), reported an impressive 73% year-on-year increase in its operational revenue for the second quarter of FY24-25, reaching ₹285.58 crore. This sharp rise in revenue highlights MCX’s growing market dominance, bolstered by a consistent rise in trading volumes, especially in the options segment.

For the quarter ending September 30, 2024, MCX recorded a total income of ₹310.82 crore, marking a 23% rise from the previous quarter. The exchange’s operating income also climbed 22% to ₹285.58 crore from ₹234.37 crore in Q1 FY24-25. MCX’s EBITDA saw a robust growth of 35%, reaching ₹204.68 crore, while net profit soared by 39% to ₹153.62 crore compared to Q1 FY24-25. This indicates MCX’s strategic growth trajectory as it continues to outperform its previous quarters.

Average Daily Turnover and Traded Clients Surge

The average daily turnover (ADT) of futures and options witnessed a significant boost of 27.49%, reaching ₹2,20,249 crore during Q2 FY24-25, a substantial increase from ₹1,72,757 crore in the previous quarter. The number of traded clients also rose by nearly 20%, with 6.80 lakh clients participating during this period compared to 5.67 lakh in Q1 FY24-25.

Notably, options trading recorded remarkable growth, with the ADT jumping by 31.71% to ₹1,93,309 crore from ₹1,46,771 crore in the prior quarter. This surge underscores the exchange’s capability to expand its offerings and cater to the rising demand for commodity derivatives.

Expert Opinion: MCX’s Strategic Positioning

An industry expert pointed out that MCX’s substantial revenue growth and increased trading volumes demonstrate its strategic focus on enhancing liquidity and broadening its commodity offerings. They noted that the exchange’s diversified portfolio, including bullion, energy, and base metals, plays a vital role in driving its growth.

Additionally, the expert highlighted MCX’s continued efforts in technology upgrades and partnerships with international exchanges, positioning it to tap into both domestic and global markets effectively. The recent technology platform migration, completed last year, has contributed significantly to streamlining trading processes and enhancing user experience, resulting in higher trading activity.

Half-Year Highlights: A Comprehensive Look at MCX’s Performance

For the half-year ending September 30, 2024, MCX’s revenue from operations surged by 67%, amounting to ₹519.95 crore compared to the same period in the previous fiscal year. The total income reached ₹564.01 crore, and EBITDA stood at ₹356.06 crore, showing a substantial increase from ₹21.34 crore during the corresponding period in FY23-24. Net profit for the half-year period also saw a major jump, standing at ₹264.54 crore compared to ₹0.59 crore in the prior year.

MCX’s Dominance in the Indian Commodity Market

MCX continues to dominate the Indian commodity derivatives market, maintaining a market share of approximately 98% in terms of commodity futures contracts’ traded value for the fiscal year 2024-25. With its extensive product range, including bullion, energy, metals, agricultural commodities, and sectoral indices, the exchange remains pivotal in providing a platform for efficient risk management and fair price discovery.

  BSE Limited, Dalal Street, India, Manisha Thakur, MCX, Multi Commodity Exchange of India Ltd, Mumbai