MCX Share Value Tumbles Following Q3 Net Loss Announcement

Monday saw a significant 9% drop in the share price of Multi Commodity Exchange (MCX), India's premier commodities derivatives exchange, triggered by the disclosure of a net loss for the December quarter. This sharp decline was reflected in the company's shares, which plummeted to Rs 3,484 each on the National Stock Exchange (NSE).

Share Price Impact

The impact on the stock market was notable as MCX shares dipped by 9.03 percent to close at Rs 3,484 on the NSE, while on the Bombay Stock Exchange (BSE), they fell 8.92 percent, ending the day at Rs 3,489.15 per share.

Trading volumes surged in the wake of the news, with about 13.72 lakh shares changing hands on the NSE and another 67,000 shares traded on the BSE.

Market Movements

A broader market downturn accompanied the plunge in MCX's share value, with the BSE Sensex dropping by 523 points (0.73 percent) to conclude at 71,072.49. Similarly, the NSE Nifty slipped by 0.76 percent to close at 21,616.05 points.

Financial Performance

In a recent regulatory filing, MCX disclosed a net loss of Rs 5.3 crore, a significant departure from the Rs 39 crore net profit reported in the comparable quarter of the previous year. This loss came after the July-September quarter, where the exchange had already noted a Rs 19.07 crore net loss.

Despite the poor net results, MCX's operational revenue saw a year-over-year increase of 33 percent, climbing to Rs 191.5 crore from Rs 143.6 crore in the same period last year.

MCX, Shares, Loss