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NSE's Q4 Result Analysis : Strong Results along with Dividend and Bonus Rewarding Unlisted Shareholders
The National Stock Exchange (NSE) has recently announced its financial results for Q4 of the fiscal year 2024, showcasing strong growth across various financial metrics. The consolidated revenue from operations surged by an impressive 34% year-on-year, reaching Rs 4,625 crore. This growth reflects the robust performance of the NSE across its operations, including trading, listing, index services, data services, and co-location facility.
The National Stock Exchange (NSE) has recently announced its financial results for Q4 of the fiscal year 2024, showcasing strong growth across various financial metrics. The consolidated revenue from operations surged by an impressive 34% year-on-year, reaching Rs 4,625 crore. This growth reflects the robust performance of the NSE across its operations, including trading, listing, index services, data services, and co-location facility.
Financial Analysis
In terms of profitability, the NSE reported a 20% year-on-year increase in consolidated net profit at Rs 2,488 crore for the three months ended March 2024. This figure not only highlights the operational efficiency of the NSE but also its ability to generate substantial returns for its shareholders.
In the fourth quarter of the financial year 2024, the National Stock Exchange (NSE) reported a significant growth in its financial performance. The NSE's consolidated operating revenue increased by 34% year-on-year to Rs.4,625 crores, while its consolidated profit also rose by 20% year-on-year to Rs.2,488 crores. The standalone operating revenue for the same period grew by 25% year-on-year to Rs.4,123 crores, and the standalone profit saw a 3% year-on-year increase to Rs.1,856 crores.
For the financial year 2024, the NSE contributed Rs.43,514 crores to the exchequer, including Rs.34,381 crores from STT/CTT, Rs.3,275 crores from Income tax, Rs.2,833 crores from Stamp duty, Rs.1,868 crores from GST, and Rs.1,157 crores from SEBI charges. Notably, the NSE's STT accounted for 3.77% of the net personal Income Tax collections for the financial year 2023-24.
Rewarding Shareholders: Bonus & Dividend
The NSE Board recommended a dividend of Rs.90 per share (pre-bonus) for the year ending FY 24, amounting to a payout of Rs.4,455 crores. Additionally, the Board suggested issuing 4 bonus shares for each existing share held, subject to required approvals.
NSE register robust growth in all segments compared to last year :
The National Stock Exchange (NSE) continues to demonstrate robust growth and development. This blog post delves into the key components of NSE's revenue streams and highlights its impressive growth over the past year.
Listing Services: NSE's listing, book building, and processing fees have grown from Rs.180 crores in the previous year to Rs.223 crores. This growth indicates a healthy environment for new listings and an increase in the number of companies choosing NSE for their public offerings.
Data Center and Connectivity Charges: One of the significant contributors to NSE's revenue is its data center and connectivity charges, which have surged from Rs.613 crores to Rs.884 crores. This increase can be attributed to the growing demand for high-quality data services and connectivity solutions among market participants.
Racks and Connectivity: Within the data center and connectivity segment, racks saw an increase from Rs.88 crores to Rs.130 crores, while connectivity charges grew from Rs.525 crores to Rs.754 crores. This growth reflects the expansion of NSE's technological infrastructure to cater to the increasing needs of the financial industry.
Treasury Income: NSE's treasury income has also seen a notable rise from Rs.714 crores to Rs.1,274 crores. This income is generated through the management of the exchange's financial resources and serves as a crucial component of its overall revenue.
Transaction Charges: Transaction charges remain the largest contributor to NSE's revenue, with an increase from Rs.10,173 crores to Rs.12,049 crores. This growth underscores the exchange's strong market position and its ability to capture a significant share of trading activities in the Indian financial markets.
Operating Revenue and Total Revenue: NSE's operating revenue has grown by 21%, from Rs.11,181 crores to Rs.13,511 crores. The total revenue, including other income, has also seen a 24% increase, from Rs.11,859 crores to Rs.14,717 crores.
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are the two primary stock exchanges in India, both playing critical roles in the country's financial market. However, they differ in several key aspects.
The NSE is the largest stock exchange in India in terms of volume and turnover. Established in 1992, it was the first stock exchange in India to introduce electronic trading, which significantly increased its efficiency and appeal to investors. The NSE is known for its benchmark index, the Nifty 50, which comprises the top 50 companies listed on the exchange, representing various sectors of the economy. The NSE has a higher market capitalization than the BSE, positioning it as the leading stock exchange in India and one of the largest in the world based on equity trading volume.
On the other hand, the BSE is the oldest stock exchange in Asia, founded in 1875. It has the largest number of listed companies in the world, with more than 5,500 companies listed on the exchange. The BSE's benchmark index, the Sensex, comprises the top 30 financially strong Indian companies. Despite having a larger number of listed companies, the BSE has a lower market capitalization compared to the NSE.
The NSE is generally considered more technologically advanced and efficient, with a higher trading volume and liquidity. It attracts more institutional investors due to its technology-driven environment. However, the BSE maintains a significant presence and historical importance in the Indian market, serving a broader range of companies and investors.
In summary, while the NSE is currently positioned as the leading stock exchange in India, the BSE continues to play a crucial role in the country's financial market as the oldest and one of the largest exchanges in the world by the number of listed companies.
Conclusion: The National Stock Exchange's impressive growth across various revenue streams highlights its dominant position in the Indian financial markets. With a strong focus on technological advancements and efficient operations, NSE is well-positioned to continue its growth trajectory in the coming years.
Disclosure:
I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure:
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.
Disclosure legality:
I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.
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