MCX tanks over 10% on sharp fall in Q2 net profit

The company had reported over three-fold drop in its standalone net profit to Rs 27 crore (Rs 270 million) for the quarter ended September 2013.

Shares of Multi Commodity Exchange of India (have tanked over 11% to Rs 428 on back of heavy volumes on the bourses.

The stock opened at Rs 485 and hit a high of Rs 490 in early morning deals on the Bombay Stock Exchange.

A combined 745,000 shares have already changed hands on the counter so far as against average sub 500,000 shares that were traded daily in past two weeks.

MCX, the commodity bourse, promoted by Jignesh Shah-led Financial Technologies (India), has reported over three-fold drop in its standalone net profit to Rs 27 crore (Rs 270 million) in the second quarter of the current financial year due to lower operational income and higher expenses.

The company had clocked a net profit of Rs 81 crore (Rs 810 million) in the same period last year.

MCX's total operational income declined by 36% to Rs 88 crore (Rs 880 million) in the quarter ended September 30, from Rs 138 crore (Rs 1.38 billion) in the same period last year.

Expenses increased to Rs 77 crore (Rs 770 million) from Rs 58 crore (Rs 580 million) for the period under review, according to a filing on the BSE.

Meanwhile, Kotak Institutional Equities cuts MCX India from 'add' to 'reduce' with fair value of Rs 500 per share, the Reuters report suggests.

Financial Technologies (India) too, down 5% at Rs 152 on the BSE.