BSE shares surge 11%, Balaji Amines stock down 7% post Q1 results; what's ahead?

Shares of BSE Ltd surged 11 per cent in Thursday's trade after a three-fold jump in the June quarter profit, while those of Balaji Amines fell 7 per cent on disappointing quarterly earnings. In the case of BSE, the exchange reported a consolidated profit of Rs 264.10 crore against Rs 72.60 crore, excluding exceptional items, in the same quarter last year. Transaction charges grew 455 per cent YoY, led by the derivatives segment. Star MF recorded a jump of 72 per cent YoY in total number of transactions to 14.1 crore in Q1FY25 from 8.3 crore in Q1FY24.

The BSE stock climbed 11.77 per cent to hit a high of Rs 2,657 on NSE.

MOFSL said the stock exchange continues to gain market share in the derivatives segment as acceptance of products gets widespread. The momentum for stock futures and options launched in July is still at a nascent stage, it said. Considering the uncertainty around F&O regulations, MOFSL maintained its 'Neutral' rating on the stock with a 1-year target price of Rs 2,700.

"Other levers that will support growth over the medium term include: 1) colocation revenues, 2) continued momentum in the STAR MF business, 4) growth in the cash segment, 5) possibility of levying a fee for listing of debt securities, 6) start of operations at its Power Exchange, and 7) commencement of revenue from its Gold Spot exchange," it said. 

Balaji Amines shares plunged 6.54 per cent to hit a low of Rs 2,235.80 on BSE. Balaji Amines reported 32 per cent drop in its net profit at Rs 46 crore for the June quarter compared with 68 crore in the same quarter last year. Sales for the quarter declined to Rs 393 crore from Rs 469 crore. Ebitda fell to Rs 74 crore from Rs 104 crore YoY, with Ebitda margin contracting 300 basis points to 19 per cent from 22 per cent YoY.  

Managing Director Ram Reddy said his company saw a 5 per cent year-on-year increase in volume, but sales declined, as realisation dropped due to fall in raw material pricing. 

"We are actively managing these challenges and are confident in our ability to navigate through them while maintaining our profitability. The Pharma market is showing encouraging signs of improvement, positioning us well for future growth. Although the Agro Chem market has been slow this quarter, we anticipate improvements in the upcoming quarters as market conditions stabilise," Reddy said.

Balaji Amines said its capital expenditure projects are progressing as planned. The commissioning of methylamine plant is on schedule for Q3, and the Dimethyl ether project is expected to be completed by the end of this financial year, it said.