Media Release

 

Operating EBITDA (consolidated) for the quarter ended 30^th June, 2019 increased by 120 % to Rs 5.5 crore from Rs 2.5 crore in previous quarter.

 

Percentage of Operating revenue (consolidated) to total revenue (consolidated) for the quarter ended 30^th June, 2019 increased to 68% from 64% in previous quarter.

 

BSE proposes to buyback 67.65 lakhs fully paid up equity shares of Rs 2 each at Rs 680 per equity share through tender offer route amounting to Rs 460 crore.

 

BSE has paid final dividend of Rs 25 per equity share of face value Rs 2 each on July 17, 2019.

 

 

Business update across the segments –

 

ü  Mutual Fund Segment - Orders processed in Mutual Fund Segment increased by 75% to 1.2 crore in Q1 FY20 from 0.7 crore in Q1 FY19.

ü  India International Exchange (IFSC) Ltd. (“India INX”) - Average daily turnover in India INX, BSE’s wholly owned subsidiary at GIFT City, Gandhinagar increased by 321% to USD 1,879 million in Q1 FY20 from USD 447 million in Q1 FY19. India INX has also recorded highest number of contracts traded of 405,544 with a turnover of USD 4.9 billion ( Rs 34,031 crore approx.) on July 25, 2019.

ü  Commodity Derivatives Segment - Successfully launched Commodity Derivative in Turmeric during the quarter ended June 30, 2019.

 

MUMBAI, August 2, 2019: BSE Ltd. (BSE), Asia’s oldest and first universal exchange and World’s fastest exchange with a speed of 6 microseconds, announced its unaudited consolidated and standalone financial results for the quarter ended June 30, 2019.

 

Quarterly Consolidated Financial Results at a Glance

Business Highlights for the quarter Ended June 30, 2019

 

·         StAR  MF Platform : BSE has been able to effectively monetize its StAR MF platform and the revenue earned from the services provided under BSE’s StAR MF platform for the quarter ended June 30, 2019 is 11% of its revenue from operations which is almost 80% as much as what is earned by the BSE in its equity segment. BSE continues to upgrade and bring technological innovations to its StAR MF platform. BSE’s newly launched BSE StAR MF mobile app has processed over 10,000 transactions in a month (May 15, 2019 to June 15, 2019) amounting to Rs 101 crore. The number of registered mutual fund distributors in the Mutual Fund segment increased by 146% to 26,269 as on July 31, 2019 as compared to 10,678 as on June 30, 2018. The total number of XSIPs registered under this segment increased by 27% to 4.67 lakhs for the quarter ended  June 30, 2019 from 3.68 lakhs for the quarter ended June 30, 2018. The total number of orders processed in the Mutual Fund Segment increased by 75% to 1.22 crores for the quarter ended June 30, 2019 from 0.70 crores for the quarter ended June 30, 2018. The total value of orders processed in the Mutual Fund Segment increased by 39% to Rs 54,449 crore for the quarter ended June 30, 2019 from Rs 39,125 crore for the quarter ended June 30, 2018.  Further, the total number of orders received in the month of June 2019 is higher by 57% as compared to the orders received in the month of June 2018.

 

BSE StAR MF, India’s largest Mutual Funds Distributor platform recorded a new high of 7.6 lakh transactions on June 10, 2019. BSE StAR MF surpassed the earlier highest of 7.2 lakh transactions in a single day on March 11, 2019.  The group has redefined the service standards of Mutual Funds Distributors in India. The robustness and seamlessness of BSE StAR MF, the swiftness of distributors, and query resolution through real-time interaction through BSE StAR MF user’s telegram group have created an ideal ecosystem for all stakeholders in India’s Mutual Funds Industry. BSE StAR MF creating an overall distribution network of over 2,00,000 in over 3000 cities and towns of India. BSE has once again exhibited that with scalability, the service standards notch higher. In the current quarter, BSE StAR MF has processed nearly 122 Lakhs transactions amounting to Rs 54,449 crore, processing over 39 lakh transactions per month.  BSE’s market share in this segment for FY19 stands at 75%.

 

 

·         Commodity Derivatives Segment : In Commodity Derivative segment, ever since the launch of Gold and Silver futures on 1st October 2018, BSE has been expanding its bouquet of commodities.  BSE has launched contracts in Oman Crude Oil futures on 26th October, 2018, Copper contracts on 2nd November, 2018, Guar seed and Guar gum on 6th February, 2019, Cotton Futures on 18th February, 2019 and Turmeric on 28th June, 2019.

BSE has tied up with various associations in the commodities business for growth of and development of commodities derivatives business in India.  The entities with whom BSE has tied up includes renowned entities including London Metal Exchange, Dubai Mercantile Exchange, Bombay Metal Exchange, Cotton Association of India, Agriculture Price Commission, Federation of Indian Spices Stakeholders, Gems & Jewellery Skill Council of India, Bullion Federation etc.

The total number of members admitted in this segment is 264. The average daily turnover in Commodity Derivatives segment for the quarter ending 30th June 2019 was Rs. 238 crore. Currently, as per BSE’s Circular dated 27th September, 2018, BSE has waived transaction charges in this segment till 30th September, 2019.

The turnover in this segment has been steadily improving to Rs 47,823 crore till 30th June, 2019. Share of Gold derivatives is 34%, Agri derivatives is 60% and Silver derivatives is 6%. 

 

·         India International Exchange (IFSC) Ltd. (“India INX”) : Average daily turnover in India INX, BSE’s wholly owned subsidiary at GIFT City, Gandhinagar witnessed a phenomenal growth of 321% to USD 1,879 million in Q1 FY20 from USD 447 million in Q1 FY19.  The turnover comprises of significant contribution by Equity Derivatives Segment as well as Commodity Derivatives Segment.  The Equity Derivatives Segment contributed to 91% of average daily turnover and the Commodities Derivatives Segment contributed to 9% of average daily turnover in Q1 FY20.  Average daily turnover for the month of June 2019 was USD 2,779 million.

India INX witnessed an all-time high turnover of over USD 4.9 billion ( Rs 34,031 crore approx.) on its derivative segment on July 25, 2019. INX’s market share in this segment in Q1 FY20 is 84%.

 

On April 3, 2019 India INX has signed a memorandum of understanding (MoU) with Moscow Exchange (MOEX) with an aim of connecting the investors’ community and companies in both countries and allowing a capital formation platform on a larger scale. BSE and India INX are the first Indian Exchanges to enter into the MoU with Moscow exchange.

 

·         India INX Global Access (IFSC) Ltd. : India INX has launched India INX Global Access IFSC Limited (“Global Access”), it aims to become the leading financial services provider in IFSC GIFT City in the years ahead by facilitating a centralized access to international financial markets for its customers. For participants at GIFT IFSC, Global Access will provide a unified single-window interface for trading on CME Group of exchanges with immediate effect. For members and clients of India INX, Global Access offers a competitive and sustainable value proposition to access global markets in a cost efficient way.

 

India INX has expanded its vision of being the preferred outbound gateway by providing connectivity to LME and other global exchanges viz. ICE Futures U.S., ICE Futures Europe, EUREX & Euronext N.V. Clients have commenced trading in LME via Global Access in addition to CME Group of exchanges namely CME, CBOT, COMEX, NYMEX. The first trade on LME in India INX Global Access.

 

 

·         Power Exchange: BSE along with PTC India Limited and ICICI Bank Limited have filed a petition with the power market regulator, Central Electricity Regulatory Commission on September 7, 2018 for grant of license for setting up a new power exchange. This proposed institutional exchange, subject to necessary regulatory approvals, would leverage on the experience and expertise of its stakeholders in their fields; knowledge of the power sector, funding of power projects and associated infrastructure, setting-up and running various exchanges and platforms in India, and offer the market participants a credible power trading platform. BSE has a stake of 41.08% as on 30th June, 2019 in the proposed power exchange through its wholly owned subsidiary, BSE Investments Limited.

 

·         Insurance Broking: BSE has set up a Joint venture with Ebix named BSE Ebix Insurance Broking Private Limited for conducting Insurance Broking business where BSE holds equity stake of 40% through its subsidiary BSE Investments Limited. The regulatory approval from Insurance Regulatory and Development Authority of India (IRDA) for the same is awaited.

 

Dividend

 

BSE has paid final dividend of Rs 25 per equity share of face value of Rs 2 each on July 17, 2019.  After taking into account the interim dividend of Rs 5 per equity share paid in the month of December 2018, the total dividend paid for the financial year was Rs 30 per equity share of face value of Rs 2 each. The dividend payout ratio for financial year 2018-19 was 97%.

 

Buyback of equity shares

 

BSE also proposes to buyback 67.65 lakhs fully paid up equity shares of Rs 2 each at Rs 680 per equity share through tender offer route. The number of shares proposed to be bought back represents 13.06% of the total paid-up equity capital of the Company. The total amount of buyback size would be maximum of Rs 460 crore.   The Buyback offer size represents 24.73% of the aggregate of the total paid up capital and free reserves of the Company based on the standalone audited financial statements of the Company as at March 31, 2019.  BSE has already filed its Draft Letter of Offer with respect to same on July 22, 2019 and is in process of providing certain additional documents and information as required.

 

 

 

Commenting on financial performance for the quarter ended, Shri Ashishkumar Chauhan, MD & CEO, said: “Interoperatibility has been implemented recently. Some of the newer business have also started contributing to the revenues significantly. StAR MF platform’s achieving contribution of 11% to the revenue from operations in a short period of past 2 years is a demonstration of the success of BSE’s  strategy to focus and grow by expanding into segments other than equity and into distribution activities.  BSE would continue to focus on strengthening current business activities and new initiatives to monetize each such initiatives appropriately at opportune times and grow its revenue base.”   

 

About BSE

 

BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.

 

BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.

 

Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.

 

Media Contact

Yatin Padia

022 2272 8516

yatin.padia@bseindia.com