BSE Limited (formerly Bombay Stock Exchange) is set to unveil its September quarter (Q2 FY24) financial results on Tuesday, with market analysts anticipating robust performance across key metrics. The stock exchange operator is expected to showcase significant year-on-year growth in profit, revenue, and EBITDA, according to forecasts from three leading brokerages.

Profit After Tax (PAT) Projections

Analysts predict a substantial increase in BSE's profit after tax for Q2 FY24:

• Estimated PAT growth: 46-64% year-on-year
• Projected PAT range: Rs 506.00 crore to Rs 529.00 crore

Revenue Expectations

The company's top line is also expected to see strong growth:

• Projected revenue growth: 36-41% year-on-year
• Brokerage estimates:
  • Centrum Broking: Rs 1,153.00 crore (41% YoY growth)
  • Nuvama: Rs 1,046.00 crore (40% YoY growth)
  • Motilal Oswal: Rs 1,014.00 crore (36% YoY growth)

The anticipated revenue growth is attributed to sustained expansion in derivatives and steady cash market volumes.

EBITDA Outlook

Earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to show significant improvement:

• Projected EBITDA growth: 57-69% year-on-year
• Estimated EBITDA range: Rs 630.00 crore to Rs 725.00 crore

Key Performance Indicators

While year-on-year growth across all metrics is expected to be strong, analysts note that sequential growth might moderate due to increased operational expenses.

Focus Areas for Investors

As BSE prepares to release its Q2 FY24 results, investors and analysts will be closely watching several key areas:

1. BSE's market share in index options
2. Regulatory developments from SEBI regarding equity derivatives tenure adjustments
3. Trends in operational costs and clearing expenses

These factors could provide insights into BSE's competitive position and future growth prospects in the evolving Indian financial markets landscape.

The upcoming earnings announcement is anticipated to offer a comprehensive view of BSE's performance in a quarter marked by dynamic market conditions and regulatory changes in the Indian financial sector.

BSE shares rallied 10.7% to Rs 2,718.70, leading a surge in capital market stocks following supportive comments about the Futures & Options (F&O) segment. The rally was fueled by clarifications from government officials addressing market concerns over potential changes to F&O trading.

Market Performance

Capital market stocks posted significant gains:

Government Stance on F&O Segment

Finance Minister Nirmala Sitharaman provided reassurance to the market:

• The government is not looking to shut down the F&O segment
• Focus is on removing roadblocks in the segment
• Emphasized investor responsibility in understanding risks

SEBI's Position

SEBI Chairman Tuhin Kanta Pandey reinforced the government's stance:

• Any future changes would involve proper consultation papers
• Implementation would be in a calibrated manner

Market Context

The surge in capital market stocks comes amid:

• Earlier speculation around SEBI's proposal to review weekly options expiries
• Volatility in capital market stocks due to these speculations

The clarifications from government officials have helped alleviate market concerns, leading to the positive movement in stock prices of exchanges and related companies.

Investors are advised to stay informed about any future developments in the F&O segment and continue to exercise caution while trading in these instruments.