Amid crisis in group firm NSEL, India's largest commodity exchange MCX today reported a 71 per cent decline in net profit to Rs 21.83 crore for the quarter ended December due to imposition of transaction tax on non-agri items.
The company had posted a net profit of Rs 75.87 crore in the year-ago period.
Total income from operations during October-December more than halved to Rs 61.41 crore against Rs 130.90 crore in the corresponding period of previous year, MCX said in a filing to the BSE.
Commenting on the results, MCX's MD and CEO Manoj Vaish said: "...Performance during Q3 FY2014 has been encouraging, despite the challenges such as imposition of Commodities Transaction Tax (CTT) on non-agri commodities and weak market sentiments, among others."
However, he added that the exchange retained its position as country's largest commodity exchange with a market share of about 86 per cent.
The newly appointed MD said that MCX would aim to provide a transparent, efficient and well-developed marketplace by espousing innovations and best practices in all facets of its business, developing market linkages and engendering wide participation.
"In this endeavor, we are guided by a newly re-constituted Board comprising 14 members, of whom 7 are Independent Directors and 6 Shareholder Directors," he added.
MCX promoter Financial Technologies India Ltd (FTIL) has been facing a huge crisis because of Rs 5,600 crore payment default in its subsidiary National Spot Exchange Ltd (NSEL).
Earlier this month, MCX has capped FTIL's voting rights at 2 per cent with immediate effect and directed the Jignesh Shah-led company to divest a 24 per cent stake in the bourse.
In its order of December 17, the FMC had declared FTIL and its chief Jignesh Shah unfit to run any exchange. The regulator had said FTIL was not 'fit and proper' to hold more than a 2 per cent stake in the MCX.
