MCX share price drops after Q4FY16 results

Multi Commodity Exchange of India (MCX) has declared its fourth quarterly result on May 5. The company’s top line has increased by 6.23 per cent to Rs 60.51 crore in Q4FY16 as compared to previous quarter. Its EBITDA has declined by 9.44 per cent to Rs 18.6 crore in Q4FY16 on a quarterly basis. MCX’s EBITDA margin has contracted by 532 basis points to 30.74 per cent in Q4FY16 on a sequential basis.However, the company’s PAT has increased by 50.95 per cent to Rs 27.11 crore in Q4FY16 as compared to the previous quarter. Its PAT margin has been considerably lowered to 44.8 per cent in Q4FY16 on a quarterly basis.

On a yearly basis, MCX’s consolidated revenue has increased by 5.59 per cent to Rs 235 crore in FY16. The company’s EBITDA has declined by 12.47 per cent to Rs 76.64 crore in FY16 as compared to previous financial year. Its EBITDA margin has contracted by 674 basis points to 32.62 per cent in FY16 on a yearly basis. MCX’s other income has decreased by 10.67 per cent to Rs 98.4 crore and exceptional expense of Rs 66.68 crore in FY16. The company’s Net Profit has also reduced by 66.23 per cent to Rs 42.47 crore in FY16 as compared to previous fiscal year.

The share price of MCX has declined by 5.39 per cent on bourses in early trades; and is trading at Rs 878.35 on an intraday basis.

MCX operates an electronic commodity futures exchange. The company is a demutualised exchange and is engaged in online trading, clearing and settlement operations of commodity futures transactions. MCX offers trading across segments, including bullion, ferrous and non-ferrous metals, energy and agricultural commodities. The Company's flagship index, the MCXCOMDEX, is a real-time composite commodity futures price index, which gives information on market movements in key commodities.