BSE Shares Drop 4% as Q3 Profit Misses Estimates, Despite Doubling YoY

6 Feb 2024 , 12:34 PM

BSE shares witnessed a 4% decline on February 6 following the exchange’s Q3 FY24 net profit of ₹106 crore, which fell short of Street estimates by about 20%.

The lower profit was attributed to increased contributions to the Settlement Guarantee Fund (SGF) for the currency derivatives segment, as stated by company management.

In the early trade, BSE stock was priced at ₹2,444.85 on the NSE, marking a 4.5% decrease from the previous close. Investors opted to book profits amidst a 16% rally in the stock over the preceding five days, with a remarkable 390% gain over the past year.

Despite the profit miss, BSE doubled its net profit in Q3 FY24 from ₹51.6 crore a year ago, achieving its highest quarterly revenue of ₹431.5 crore, a 76% increase from the previous year.

BSE’s average daily turnover (ADTV) for the futures and options (F&O) segment more than doubled to ₹71 lakh crore in December compared to ₹35 lakh crore in November. The exchange has been enhancing its market share in the F&O segment since reintroducing weekly index options for the Sensex and the Bankex in May.

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