NSE Recommends 4:1 Bonus Shares, Rs 90 Dividend On Robust Q4 2024 Results

The National Stock Exchange (NSE) made announcements on Friday following its latest board meeting, signalling positive developments for shareholders and reflecting robust financial performance in its Q4 results for the fiscal year 2024.

Bonus Shares and Dividend Recommendations:

The NSE board has recommended issuing bonus shares in a 4:1 ratio, subject to necessary approvals from shareholders and regulators. Additionally, the board proposed a dividend of Rs 90 per share (pre-bonus) for the fiscal year ending FY24. This dividend amounts to a total payout of Rs 4,455 crore, showcasing the exchange's commitment to delivering value to its investors.

While the exact record dates for the bonus shares and dividend are yet to be declared, these recommendations underscore the confidence of the NSE board in the company's financial strength and growth prospects.

Q4 2024 Financial Performance:

The NSE's Q4 results for FY24 demonstrate robust growth across various financial metrics. Consolidated revenue from operations surged by an impressive 34% year-on-year, reaching Rs 4,625 crore. This growth was driven not only by trading revenue but also by contributions from other revenue streams, including data centre and connectivity charges, clearing services, listing services, index services, and data services.

The exchange reported a consolidated net profit of Rs 2,488 crore for the quarter, marking a substantial 20% increase compared to the same period last year. Notably, the net profit margins for Q4 FY24 stood at an impressive 49%. Furthermore, on a consolidated basis, earnings per share rose to Rs 50.25, reflecting the company's strong financial performance and efficiency in utilising its resources.

Trading volumes also witnessed significant growth during the quarter, with cash markets recording an average daily traded volume of Rs 1,11,687 crores (up 127% YoY), equity futures reaching an ADTV of Rs 1,79,840 crores (up 60% YoY), and equity options (premium value) ADTVs standing at Rs 75,572 crores (up 27% YoY). These figures underscore the increasing market activity and the NSE's continued leadership in facilitating seamless trading operations.

Commitment to Regulatory Compliance:

NSE and its subsidiary, NCL, made additional contributions to augment the Core Settlement Guarantee Fund (SGF) corpus, reaching Rs 10,000 crores as desired by the Securities and Exchange Board of India (SEBI). As of March 31, 2024, the core SGF corpus stands at Rs 8,819 crores, highlighting the exchange's commitment to maintaining robust risk management frameworks and ensuring market integrity.

NSE Review

The NSE's recommendations for bonus shares and dividend payout, coupled with its strong Q4 2024 financial performance, reflect the exchange's resilience and ability to capitalise on market opportunities. With a focus on value creation for shareholders and adherence to regulatory standards, NSE remains well-positioned to navigate evolving market dynamics and drive sustainable growth in the future. Investors and stakeholders can look forward to continued value creation and transparency from one of India's leading stock exchanges.