The National Commodity & Derivatives Exchange (NCDEX) Limited held a board meeting on 23rd May 25, announcing their annual audited financial results for the Financial Year Ended 31st March 2025. This year’s results are turning out to be the classic case where bottom-line figures are growing despite the declining operational health of the organisation.
Let’s look at the NCDEX Financial Statements to understand what’s happening:
| Particulars | FY 24-25 (In Rs Cr.) | FY 23-24 (In Rs Cr.) |
| Total Income | 122.06 | 136.06 |
| Net Profit/ (Loss) before tax and extraordinary items | -65.19 | -43.09 |
| Net Profit/ (Loss) before tax and after extraordinary items | 278.82 | -33.2 |
| Net Profit/ (Loss) after tax and extraordinary items | 236.09 | -27.7 |
| Total Comprehensive Income (after Tax) | 234.69 | -28.39 |
| EPS Per Share (For Continued and Discontinued Operations) | 48.86 | -5.14 |
Investors must note that:
- NCDEX’s Annual Revenue dropped by more than 10%, possibly due to lower trading activity or fee-based income. This can be a reflection of reduced business volume or competitive price pressures.
- The Profit Before Tax and extraordinary items declined by a massive 51%, further increasing the loss from 43 crore to 65 crore, suggesting an operating level stress due to rising employee costs and fixed costs.
The income turnaround of Rs 344 crores happened in extraordinary items due to the following reasons:
- NCDEX sold a 23.15 % stake in Power Exchange India Limited (PXIL), making a Rs 139 crore profit.
- NCDEX made a revaluation gain of Rs 218.99 crores for the remaining 17% stake in PXIL as it ceases to be an associate company of PXIL.
- The remaining difference of Rs 14.36 crores is the provision for doubtful debts made by NCDEX.
Not just PXIL, but NCDEX also sold its 16.22% stake in National E Repository Limited (NeRL), at a profit of Rs 27.6 crores, which got added in ‘Other Equity’ in the balance sheet.
Key Takeaways From NCDEX Financial Performance
1. Core business operations are struggling – losses widened from ₹43.09 cr to ₹65.19 cr before one-time gains.
2. Extraordinary items were salvaged this year, turning a loss into a massive ₹278.82 cr profit before tax.
3. Total income declined by 10.29%, which is concerning, especially in a growing market like commodities.
4. EPS of ₹48.86 looks stellar but is non-recurring.
All this indicates that the true health of the NCDEX is weak; without stake sales, the company would have reported deep losses.
Also Read:
NCDEX vs MCX: Comparison And Key Differences
FAQs
1. What is the function of NCDEX?
NCDEX is one of India’s top trade commodity exchanges. It functions similarly to NSE and other stock exchanges, with the exception that it deals in commodities rather than stocks and stock indexes.
2.Is NCDEX private or government?
It is a government-owned corporation established on April 23, 2003, per the Companies Act of 1956, and received its certificate for the start of operations on May 9, 2003. It started running on December 15, 2003.
3. What comes under NCDEX?
The National Commodity and Derivatives Exchange, often known as NCDEX, is one of India’s top commodity exchanges. It specialises in trading various agricultural commodities, including grains, spices, oilseeds, pulses, metals, and energy goods.
4.What is NCDEX Trading?
The National Commodity and Derivatives Exchange, often known as NCDEX, is one of India’s top commodity exchanges. It specialises in trading various agricultural commodities, including grains, spices, oilseeds, pulses, metals, and energy goods.
5. What is NCDEX Trading?
The National Commodity & Derivatives Exchange Limited operates with an independent Board of Directors and is regulated by the Securities and Exchange Board of India (SEBI).
6. Who are the competitors of NCDEX?
NCDEX (National Commodity & Derivatives Exchange) faces competition from several exchanges, primarily the Multi Commodity Exchange (MCX), National Spot Exchange Limited (NSEL), and Indian Commodity Exchange Limited (ICEX).
