NSE India Limited Unlisted Shares

Annual Report Summary

The National Stock Exchange of India Limited (NSE) Annual Report 2022-23 emphasizes trust, security, and inclusiveness. The report is structured to cover corporate overview, snapshots, performance, chairman's overview, board of directors, management analysis, corporate information, integrated report, statutory compliance including business responsibility, board's report, and financial statements.

Corporate Overview and Snapshot: NSE is highlighted as the world's largest derivatives exchange for the fourth consecutive year. It is also the third-largest stock exchange globally and the largest in India. Incorporated in 1992, NSE received recognition from SEBI in 1993 and commenced operations in 1994. The company held a dominant market share in FY23, with 93.6% in the cash segment and 98.5% in derivatives. Flagship indices include Nifty 50 and Nifty Bank. Technological leadership is shown through the NEAT+ trading system and the CNX Volatility Index (VIX). NSE's clientele includes retail investors, institutional investors, FIIs, banks, and asset management companies.

Financial Performance: The report demonstrates NSE's strengthened performance over the years, showing growth in revenues, net profit, earnings per share, net worth, and dividend per share. The group’s consolidated revenues increased from ₹8,873.79 crore in FY22 to ₹12,765.36 crore in FY23, an increase of 43.85%. Consolidated net profit after tax increased by approximately 41.51%, reaching ₹7355.99 crore. The increase in group's consolidated net worth between FY22 and FY23 was ₹5,068.05 Crs, with a percentage increase of approximately 32.89%. ETF daily average turnover reaches ₹486 Crs, a 38% year on year growth.

Chairman's Overview: Chairman G.C. Chaturvedi notes India's economic growth, despite global challenges like the Russia-Ukraine war and China's pandemic-induced lockdowns, India’s GDP grew 7.2% in FY 2022-23, NSE's role in capital raising, entrepreneurship, and economic growth is emphasized. The consolidated revenue of the NSE Group for FY 2022-23 stood at ₹12,765 Crs, a Y-o-Y growth of 44% with operating EBITDA margin of 78%. The NSE remained the largest derivatives exchange in the world in terms of the number of contracts traded for the fourth successive year. NSE launching WTI crude oil and natural gas futures contracts.

Board of Directors: The report lists and profiles the Board of Directors, including Shri Girish Chandra Chaturvedi, Shri Ashishkumar Chauhan, Shri K. Narasimha Murthy, Prof. S Sudarshan, and Smt. Mona Bhide, Shri S Ravindran, Shri Veneet Nayar.

Management Discussion and Analysis: The report outlines global economic conditions and the Indian economic overview, highlighting government initiatives, capital market scenarios, and NSE's financial performance. India's GDP growth is estimated at 7.0% in FY 2022-23, with the RBI projecting 6.5% for 2023-24. The total capital raised through equity was ₹1.5 lakh Crs in FY 2022-23 and via debt ₹12 lakh Crs. Indian equites outperforming global markets (Developed as well as Emerging markets). Government initiatives and measures such as Gati Shakti for connectivity and efficiency are listed. Key government initiatives included setting up a National Financial Information Registry, capacity building for the securities market, and launch of Central Bank Digital Currency. NSE receives regulatory nod to launch WTI Crude Oil and Natural Gas futures contracts. NSE Commenced the full scale operation of NSE IFSC-SGX Connect from FY 2023 and received regulatory approval to launch WTI Crude Oil and Natural Gas futures contracts. Securities settled with speed.

Integrated Report: NSE presents its fourth annual integrated report, aligning with SEBI's guidelines and showcasing NSE's vision, strategy, and performance across various parameters. Key points include financial, intellectual, manufactured, human, and social & relationship capital highlights for FY23.

Business Responsibility and Sustainability Report: It outlines NSE's stakeholder engagement process, identifying internal and external stakeholders. It emphasizes responsible and ethical business practices, including anti-corruption efforts and alignment with global sustainability initiatives. The report shows NSE has a sustainable infrastructure and technology. Market Integrity, Stability & Enforcement Details are provided.

Financial Statements: The report presents detailed financial statements including the balance sheet, statement of profit and loss, and cash flow statement, along with notes. Key financials include a total revenue of ₹12,692.19 Crs, total expenditure ₹3,239.76 Crs, Profit Before Tax ₹9,452.43 Crs and Profit After Tax ₹7,232.90 Crs. Market Capitalisation is ₹2,56,33 lakh Crs.

Going Forward: The company plans for expansion in capabilities, a transition to a capital-market based financing model, maintaining infrastructure and technology, and developing partnerships for sustainable business growth.

This summary captures the extensive operations, performance, and future outlook of NSE as presented in the Annual Report 2022-23, while adhering to all constraints outlined in the prompt.