At a time when equity trading volumes have reached their nadir, the Bombay Stock Exchange’s (BSE) strategy to consolidate its business in various segments has enabled it to stem a substantial fall in its net profit.
BSE has seen a rise of 1.2 per cent in its net profit to Rs 215 crore for the year ended March 2011, compared to Rs 212 crore that it posted in the corresponding previous year.
Interestingly, trading volumes in the domestic stock markets are down 20-45 per cent in the cash equity segment since the beginning of this year and a majority of BSE’s current profit comes from depository and other businesses.
BSE’s standalone profits are yet to be made public as the exchange filed a consolidated statement after its board meeting on Wednesday, which included profits from its associate companies.
Last year, BSE increased its stake in the Central Depository and Services Ltd from around 26 per cent to 56 per cent. Other subsidiaries, which have contributed to the profits, include the Indian Clearing Corporation and Market Place Technologies (both 100 per cent BSE owned).
It is difficult to compare any other segments in the result posted after the board meet on Wednesday, as the figures are consolidated. It is for the first time that BSE has reported a consolidated result. Its rival National Stock Exchange had posted a standalone net profit of over Rs 600 crore last year.
