Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BSE Ltd (NSE:BSE, Financial) recorded its highest ever quarterly revenues with a record revenue of INR674.4 crores, up 149% compared to the corresponding quarter of the previous year.
- The net profit attributable to shareholders stands at INR265 crores, up from INR75.1 crores, marking a growth of 253%.
- BSE's operational revenues have grown by 182% to INR607.7 crores from INR215.6 crores.
- The average daily turnover in the cash segment for Q1 FY 2025 stands at INR9,006 crores, more than double the INR4,025 crores in the same quarter last year.
- BSE StAR MF delivered record revenues and performance, up 101% year-on-year to reach INR48 crores, with the total number of transactions processed growing by 72%.
Negative Points
- The evolving regulatory landscape, including SEBI's recent circulars and consultation papers, may potentially impact derivatives volumes.
- The reduction of transaction charges for BSE derivatives segment, while contributing to financial performance this quarter, may affect future revenue streams.
- Concerns were raised about the impact of the proposed SEBI order on notional turnover, which could affect the exchange fee structure.
- The potential impact of returning interest income on margin money as per SEBI's consultation paper could affect treasury income.
- The need for regulatory approval to repurpose surplus funds from the currency segment's settlement guarantee fund could limit financial flexibility.
Q & A Highlights
Q: Can you bifurcate the equity derivative revenue and provide details on the subsidized revenue and the exchange fee per crore from October 1?
A: The charges are currently levied on a slab system basis. We have started charging on a full-scale basis recently, and it will take a few more weeks to ascertain the blended rate. The SEBI directive requires charges to be based on the realized per unit charges.
Q: When will the new mid-month expiry for single stock derivatives be available on larger platforms like Zerodha, Angel Broking, and Upstox?
A: We will engage with all brokers to make it available as soon as possible due to public demand.
Q: What is BSE's initial thought on the recent SEBI consultation paper and its possible impact on industry volumes and BSE?
A: The regulatory process is co-created with market participants. BSE will adapt to the emerging paradigms and strategize to grow stronger. We remain committed to being a vibrant and innovative platform.
Q: What could be the possible impact of the SEBI consultation paper on returning interest income on margin money for BSE?
A: The total treasury income from ICCL is around INR62 crores. The exact impact will be assessed once the regulation is finalized.
Q: Will the clearing and settlement treasury income be considered while deciding on transaction charges?
A: The treasury income and clearing and settlement charges are separate. The realized revenue per unit will not be impacted by these charges.
Q: Can you elaborate on the sharp growth in 'Other Security Services' revenue?
A: It includes data dissemination fees, book building fees, and colocation rent.
Q: What is BSE's view on the SEBI consultation paper on index derivatives?
A: BSE's view aligns with ensuring market liquidity and growth while considering market participants' feedback. The final regulatory decision will be co-created with market input.
Q: Has SEBI responded to BSE's submission regarding the turnover fee?
A: We have submitted our requirements to SEBI and are awaiting their response. Any relief will positively impact us as we have already provided for this amount.
Q: What is the impact of the SEBI directive on the settlement guarantee fund (SGF) for BSE?
A: There are no regulatory targets for SGF size for BSE at this point. The adequacy of SGF will be based on risk analysis and regulatory decisions.
Q: Will BSE consider charging investors for transactions on the StAR MF platform to enhance profitability?
A: We will analyze this suggestion thoroughly, considering multiple objectives, including serving the broader market and helping investors.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
