Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• BSE Ltd (NSE:BSE) achieved its highest ever quarterly revenues of INR 819 crores, marking a 123% increase compared to the same quarter last year.

• The company surpassed the 50% operating EBITDA margin threshold for the first time, reaching 52% for the current quarter.

• BSE Ltd's mutual fund distribution platform, BSE Star MF, delivered record revenues, growing 100% year-on-year to reach INR 58.7 crores.

• The company recorded a significant milestone with a net profit attributable to shareholders of INR 346.8 crores, up from INR 120.5 crores, a growth of 188%.

• BSE Ltd is continuously investing in technology upgrades and is building a state-of-the-art data center expected to be operational by the end of the financial year.

Negative Points

• There is a concern about the sustainability of the core revenue growth, especially with upcoming regulatory changes impacting the derivatives market.

• BSE Ltd faces challenges in gaining traction for its single stock futures and options, with limited availability on major brokerage platforms.

• The company is experiencing higher clearing charges compared to other exchanges, which could impact its competitive positioning.

• There is a noted decline in volumes for BSE's Sensex and Bankex contracts, with a higher slowdown compared to NSE's similar products.

• Technological readiness and broker participation remain hurdles for expanding the reach of BSE's new products, impacting market penetration.

Q & A Highlights

Q: What will be the impact of increased contract size on clearing charges, and is there any update on revising the pricing strategy for clearing charges? A: (CEO) The increase in contract size will result in higher premiums per contract, which should increase transaction charges. However, clearing charges, based on the number of contracts traded, will remain the same. We are in discussions with clearing corporations to reduce charges or unbundle them to pass on benefits to investors. No communication has been received about increasing charges from November 20th.

Q: What efforts are being made to ensure more traction in individual stocks and options, especially since they are not available with major brokers like Zerodha? A: (CEO) We are working with brokers to provide technological access to stock futures and options. We are also engaging with participants to provide two-way quotes to enhance liquidity. Regulatory discussions have delayed intense efforts, but we are now focusing on increasing traction.