The numbers are largely in line with the expectation with stand alone profit hitting 500 Crore for the first time - excellent performance by BSE once again:
Results snap shot below:
The way Q3 is progressing, i wont be surprised if the revenue and profits go up by another 15-20% from current level.
One interesting observation is that the company has spent in excess of 300 Crore in capital expenses during the first half of the year - it would be a good data point to seek explanation from management.
Based on the response from the investor relations team on call, this amount is primarily invested into the building( Phiroze Jeejeebhoy Towers) upkeep and colocation. The process is not yet complete at this stage and the management expect to continue investing into the building for over the next one year - the management was not comfortable sharing the total budget for this project - I’m assuming another 500 crore towards this.
AJ
Disclaimer: Remain invested - no recent transactions. Consider my views as biased.
Broking Association Wants to Bring Back Bank Nifty Weekly Expiry on Thursdays, denting yet again BSE Volumes. They have asked SEBI, and as of now, nothing is clear yet.
They could ask for any day other than Thursday.
I hope SEBI doesn’t give a nod to this, and if it does, it should be some other day and eventually bring back Bankex expiry on some other day so we are back to the good old days of 4 expiry in a week.
Read this Article for a full discussion on this topic
Yes, that’s a given, but BNF is a more loved product than Sensex.
So if they clash on Thursday, BNF will be more traded than the Sensex
Even if They Bring Back Bankex to Rival Nifty on Tuesday, everyone knows it’s not going to win.
It’s better if we have 4 expiries on 4 different days. But then again, it will bring back the story of the daily expiry fiasco. Let’s see what SEBI does next.
@Thomala_Sainath I’m hoping for Monday (Bankex), Tuesday (Nifty), Wednesday (BNF) and Thursday (Sensex)
This has to be an Ideal scenario @karanshah137 4 expiries in each week. I doubt whether they will do it or may be they do it and monitor in a more robust manner. The idea must be to create a balance for everyone(Market participants)
Also I assume the decision makers have all the required data in their sight. Let’s see.
It’s pretty clear and unfortunate that NSE CEO Chavan , despite being x BSE CEO has taken it upon himself so somehow destroy BSE derivatives business..to ask for bank nifty to be brought back on the day of SENSEX or any day that conflicts with the other exch ages expiry or try so hard to get SEBI to make all expiry on same day is so disappointing.
Shame on NSE CEO seriously..SEBI should insist that all brokers and have a Bcp DRP with the other exchange and have at least 25 percentage volume compulsory pass through BCP site . This will ensure that the idea of having 2 exchanges is followed to the spirit . Squeezing liquidity by dominating the other exchange by playing these games must be stopped
PTO data suggests BSE share has now climbed to more than 27% (possibly due to lower foreign participation in Dec due to holidays). But the last 6 months has been trending towards BSE maybe 1%/month average.
Based on the PTO data for Q3, total Qtrly PTO was Rs. 12,06,462 Cr, this will translate to Rs.~784Cr of revenue from Derivatives segment (assuming no change in pricing)
Let me correct the understanding on this. Upon followup, management has confirmed that the building upgrade capex is largely behind and they dont expect any siginificant additional investment into this.
Q3 Update: Derivatives: The average daily premium turnover was approximately 19,450 Crore as compared to 15,000 Crore for Q2 - I expect the revenue from this segment to grow by approximately 20 to 25% as compared to Q2.
Equity segment: Segment has not really grown during Q3. This is one area that management should have a good look at and create a solid strategy to get back to growth.
I expect the revenue from this segment to be around the same level as reported during the last quarter.
IPO Market: IPO market continued to do well but not as active as Q2 - this quarter about 60 new companies went public as compared to 100 during the previous quarter. The revenue from this segment is likely to dip by about 30-40% as compared to Q2.
Colocation business should continue to show robust growth with management reiterating its goal to reach 500 racks by March 2026.
Overall, I expect the standalone revenue number to be around Rs. 1100 Crore with a net profit of approximately Rs. 600 Crore subject to any one-off’s.
AJ
Disclaimer: Remain invested. Consider my views as biased.
I think BSE will continue to do well especially after NSE’s listing…there is 17 pct growth there with heavy drop in profit numbers and at a 6 lac crore mcap in unlisted space…bse is hardly 1/6th of that…my bet is next few months there will be significant rerating in bse stock.
Yes, in the near term it will, with the listing of NSE exclusively on BSE, and may soon be part of Sensex itself. But MSEI has started efforts to break this duopoly.
Zerodha and Groww are early investors, and if SEBI allows expiry trading of SX40, we can get another expiry per week, though this will take a lot of time and SEBI approvals.
how will MSE be able to work? between these 2 xchanges, they cover 99% the trading market for any company. why would anyone want to list in a 3rd one that too unproven? NSE and BSE are cutting edge, not 1990s or 2000s stuff. like we are already at T+1 settlement and looking at immediate settlement options too.
Why wouldn’t it? Market makers are assigned to provide liquidity, and arbitrageurs are there to fill the void. There can very well be 3 exchanges if SEBI wants DUOPOLY to END.
Make no mistake in their ability to bring similar or better technology; after all, they are backed by big fintech names, Zerodha and Groww.
With Expiry getting killed, Zerodha and Groww have a vested interest in making this mainstream and getting another expiry.
Overall this will be good for all except NSE & BSE, which will lose some market share. But when there is some issue in any exchange, we now have surety all three won’t go bust at the same time.
