NSE profit breaches $1-billion mark; board recommends 4:1 bonus issue
National Stock Exchange surpasses USD 1 billion profit, issues 4 bonus shares, recommends Rs 90 per share dividend for FY 2023-24.
The National Stock Exchange of India Limited (NSE) has achieved a remarkable milestone in its financial performance, reporting a consolidated profit after tax of over Rs 8,300 crore in the fiscal year 2023-2024. This achievement represents a significant growth trajectory for the exchange, especially considering the challenging economic environment and the rise in total expenses. The exchange's total expenses surged by 90% year-on-year to Rs 5,350 crore in the fiscal year 2023-2024, up from Rs 2,812 crore in the previous fiscal year. Despite this substantial increase in expenses, NSE managed to cross the USD 1 billion profit mark, showcasing its resilience and efficiency in managing operational costs. In a move to reward its shareholders, the NSE board has recommended issuing 4 bonus shares for every 1 share held, along with a dividend of Rs 90 per share (pre-bonus) for the fiscal year 2023-2024. This dividend payout amounts to Rs 4,455 crore, reflecting the exchange's commitment to delivering value to its shareholders. Furthermore, NSE has been a significant contributor to the exchequer, contributing Rs 43,514 crore during the fiscal year 2023-2024.
This contribution includes various components such as Securities Transaction Tax (STT) of Rs 34,381 crore, income tax of Rs 3,275 crore, stamp duty of Rs 2,833 crore, GST of Rs 1,868 crore, and Sebi charges of Rs 1,157 crore. It is noteworthy that 60% of the STT was generated from the cash market segment, indicating the robust trading activity in this segment. As of March 31, 2024, NSE's net worth stood at Rs 23,974 crore, highlighting the exchange's strong financial position. In the fourth quarter of the fiscal year 2023-2024, total expenses amounted to Rs 1,926 crore, with 46% of the expenses allocated towards SEBI regulatory fees, additional contributions to Core SGF (Securities Guarantee Fund), and contribution to IPFT (Investor Protection Fund Trust). The corpus of the Core SGF as of March 31, 2024, stood at Rs 8,819 crore, underscoring NSE's commitment to maintaining a robust financial buffer. Overall, NSE's financial performance in the fiscal year 2023-2024 has been impressive, characterized by strong profit growth, prudent expense management, and significant contributions to the exchequer. The exchange's strategic initiatives and focus on operational efficiency have positioned it as a key player in the Indian financial market, poised for continued growth and success in the future.
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