MCX stock riding on hopes of strong prospects post technology upgrade

After a technology upgrade, the Multi Commodity Exchange of India (MCX) seems poised for an improvement in volumes. The premier commodity and currency exchange reported a loss of Rs 19.1 crore in the July-September quarter (second quarter, or Q2) of 2023-24 (FY24). This was attributed to higher software costs payable under an extended service agreement with 63 moons technologies and one-off costs for the core guarantee funds (CGF).

Total volumes improved 86 percent year-on-year (year-on-year) to Rs 67 trillion, and total revenue grew 30 percent year-on-year to Rs 165 crore (in line with expectations), with earnings before interest, taxes, depreciation, and depreciation loss (Ebitda) of Rs 35.3 crore.

Earnings may remain under pressure for another quarter, but that is not the case