NSE Q3 FY 21 Profit Breaks Record Prior to IPO

During the December quarter, the revenue of NSE hiked 2 times at Rs. 2,367 crores. The consolidated net profit is reported at Rs. 1,348 crores, growing 5 times. Isn’t it a whooping jump from Rs. 208 crores during Q3 of 2020? Keep reading to get the details!

What About the Business of NSE?

Before its initial public offering, NSE (National Stock Exchange) has generated record growth in revenue and profits. Its consolidated net profit in the 9 months (till December 2021) of FY 21 is worth Rs. 3,618 crores as against Rs. 3,600 crores of the previous full FY.

Both BSE and NSE have experienced an abrupt expansion in business during 2021 due to a flourishing equity market. During 9 months of FY 21 ended in December, the consolidated net revenue amounted to Rs. 6,084 crores. Besides, the revenue for Q3 FY 21 rose to Rs. 2,367 crores from Rs. 1,411 crores during Q3 FY 20.

NSE’s consolidated EPS (earnings per share) is Rs. 27.25 for Q3 2021 as against Rs. 4.22 of Q3 2020. Its 9-month EPS for FY 2021 is worth Rs. 73─ greater than the previous full FY’s EPS. In addition, it has an income of Rs. 1729 crores through stake sale in CAMS (Computer Age Management Services).

What Is the Status of NSE’s IPO?

National Stock Exchange is waiting for the final verdict in Algo trading or the co-location case from SAT (Securities and Appellate Tribunal) to file for the initial public offering with SEBI (market regulator).

SEBI will look through NSE’s IPO after the Central Government makes a decision on the term extension of Ajay Tyagi (SEBI chairman). The government is expected to clear its stand within a few weeks.

During the last few years, several SCN (show-cause notices) have been issued to National Stock Exchange. It includes SCN related to inadequate surveillance systems for ensuring market integrity and lack of orderly execution in trades. Additionally, the SEBI is monitoring NSE’s role at the institutional level.

Parting Words

NSE has marked a stellar growth with robust profits during the 3^rd quarter of 2021. SEBI’s current regime will be in favour of its IPO after SAT verdict. However, NSE or SEBI may reach SC (Supreme Court) if the decision is not in NSE’s favour.

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Frequently Asked Questions

1. What is the trading price of NSE shares?

The shares of the National Stock Exchange are trading with a price range between Rs. 3,000 – Rs. 3,300 for off-market deals. At Rs. 3,300, NSE is presently valued at above Rs. 1,63,000 crores.

2. What is the incorporation year of NSE?

National Stock Exchange was incorporated in 1992. SEBI recognised it as a stock exchange during April 1993.

3. When did NSE start its operations?

NSE started its operations with the introduction of the debt market (wholesale) in 1994. Thereafter, it launched the cash market.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.