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Q3FY2025 Results of NCDEX

Event Date: December 2, 2025

Document Summary

National Commodity & Derivatives Exchange Limited (NCDEX) released the standalone unaudited financial results for the quarter and nine months ended December 31, 2024.

Income:

  • The total income for the quarter ended December 31, 2024, was ₹1,025 Lakh (₹584 Lakh from Revenue from Operations and ₹441 Lakh from Other Income). The total income for the nine months ended December 31, 2024, was ₹3,449 Lakh (₹1,911 Lakh from Revenue from Operations and ₹1,538 Lakh from Other Income).
  • Other income for the quarter ended September 30, 2024 and nine months ended December 31, 2024 includes Rs. 212 lakh received from Power Exchange India Limited (PXIL) as equity dividend.
  • Other Income includes Interest on Income Tax refund of Rs. 9 lakh for the quarter and nine months ended December 31, 2024.

Expenses:

  • Total expenses for the quarter stood at ₹2,682 Lakh, and for the nine months, ₹7,859 Lakh. Expenses are categorized into employee benefits, finance, depreciation and amortization, technology, and other expenses.
  • Employee benefits expense was ₹1,125 Lakh for the quarter and ₹3,321 Lakh for the nine months.
  • Finance expense was ₹18 Lakh for the quarter and ₹59 Lakh for the nine months.
  • Depreciation and Amortization expenses was ₹316 Lakh for the quarter and ₹950 Lakh for the nine months.
  • Technology expenses were ₹830 Lakh for the quarter and ₹2,485 Lakh for the nine months.
  • Other expenses were ₹393 Lakh for the quarter and ₹1,044 Lakh for the nine months.

Profit/Loss:

  • Loss before tax before exceptional items was ₹1,657 Lakh for the quarter and ₹4,410 Lakh for the nine months.
  • After accounting for exceptional income/expense, the loss before tax was ₹1,657 Lakh for the quarter and the profit before tax was ₹845 Lakh for the nine months.
  • The company recorded a total tax expense of ₹(420) Lakh for the quarter and ₹(16) Lakh for the nine months.
  • The profit/loss after tax was ₹(1,237) Lakh for the quarter and ₹861 Lakh for the nine months.
  • Total Comprehensive Income was ₹(1,239) Lakh for the quarter and ₹833 Lakh for the nine months.

Exceptional Items:

  • For the quarter ended December 31, 2023, the company received a refund of excess contribution from core SGF - NCCL of Rs. 15 lakh. For the nine months ended December 31, 2023 and for the year ended March 31, 2024, the company received refund of excess contribution from core SGF - NCCL of Rs. 605 lakh.
  • Profit on stake sale in associate (net) for the nine months ended December 31, 2024 was Rs. 5,120 lakh.
  • Profit on stake sale in subsidiary (net) for the nine months ended December 31, 2023 was Rs. 2,690 lakh.
  • The company had sold 8.87% of its stake in PXIL for ₹5,656 Lakh, leading to a net profit of ₹5,120 Lakh.

Equity and Earnings Per Share:

  • Paid-up equity share capital remained at ₹5,068 Lakh (Face value ₹10 per share).
  • Reserves excluding revaluation reserve amounted to ₹30,329 Lakh.
  • Basic and diluted earnings per share stood at ₹(2.44) for the quarter and ₹1.70 for the nine-month period.

Additional Information:

  • The financial results have been reviewed by the Audit Committee and approved by the Board of Directors. The standalone unaudited financial results for the quarter and nine months ended December 31, 2024 has been reviewed by the Statutory Auditors.
  • The company has been facing issues related to the presence of "Mineral Oil" in some pepper stocks, which has led to warehouses being sealed and deliveries being stopped. The company is in the process of cleaning the pepper stock.
  • The board has accorded its in principle approval for the sale of investment in associate namely PXIL, to the extent of 7.14% (41,76,410 equity shares) and accordingly the management has classified carrying value of the investment to the extent of Rs. 418 lakh as 'Asset held for sale'.
  • The company expects to opt for lower tax rate under section 115BAA and hence MAT credit will not be available for setoff.
  • The Company continues to recognize and carries net deferred tax assets of Rs. 4,775 lakh on account of business losses and unabsorbed depreciation on a reasonable certainty based on future taxable profits.
  • The Exchange was permitted to hold up to 74% of the paid up share capital of NERL and to reduce it to 51% or below by December 21, 2018. Subsequently in January 2025, the management has sold the said excess holding of 16.22% of its stake in NERL for a consideration of Rs. 2,760 lakh.
  • The company is in process of raising funds through preferential issue of equity shares to identified institutional shareholders and diluting its excess holdings (as per regulatory requirements) in NERL.

Auditor's Conclusion

  • Khandelwal Jain & Co., Chartered Accountants, conducted a review of the statement and concluded that nothing came to their attention that causes them to believe that the statement doesn't comply with applicable regulations or contains any material misstatement.

Emphasis of Matter

  • The auditors highlighted the matters related to pepper contracts, the sale of stake in Power Exchange India Limited (PXIL), the suspension of new contracts, and deferred tax assets, but their conclusion remains unmodified.
  • The auditors also drew attention to the fact that the company is not in conformity with guidelines issued by Warehousing Development and Regulatory Authority (WDRA).

Consolidated Financial Results:

National Commodity & Derivatives Exchange Limited (NCDEX) also released the consolidated unaudited financial results for the quarter and nine months ended December 31, 2024. The consolidated financial results represent the results of NCDEX and its subsidiary companies (NCCL, NERL, NICR, NEML) and its jointly controlled entity (ReMS) and the Exchange's associate company (PXIL).

  • Total Income: ₹3,047 Lakh for the quarter and ₹8,295 Lakh for the nine months.
  • Profit/Loss: Loss before tax was ₹1,710 Lakh for the quarter and ₹897 Lakh for the nine months.
  • Profit/Loss after tax: Loss of ₹1,188 Lakh for the quarter and ₹484 Lakh for the nine months.
  • Total Comprehensive Income: Loss of ₹1,216 Lakh for the quarter and ₹590 Lakh for the nine months.

The board has also approved preferential allotment of equity shares. The Exchange continues to face challenges related to regulatory compliance and commodity suspensions. Despite these challenges, the financial results have been prepared based on the going concern assumption.

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