Extending their winning streak, shares of 63 Moons Technologies scaled to a new 52-week high of ₹255.90 apiece with a gain of 18% during intraday deals on Friday.
This strong spike came after the Multi Commodity Exchange of India Ltd. (MCX) once again extended the software support contract with the company, and this is the third time that MCX has approached 63 Moons to extend the software support service arrangement after the long-term arrangement ended during September last year.
The MCX has been using the same software for nearly two decades and has been forced to continue with it, although at a significantly higher cost, after failing to transfer to a new trading platform within specified deadlines on multiple occasions, as per media reports.
TCS was chosen by MCX in February 2021 to be the new vendor for the creation of the new commodity derivative platform. However, the exchange has failed to update the new technology in the stipulated time, and in recent weeks, it has cancelled several mock trading sessions which were aimed at checking out the new trading platform.
In separate early morning stock exchange filings on Thursday, Multi Commodity Exchange of India Ltd. and 63 Moons Technologies said the contract has been extended for a period of six months starting July 1 for a quarterly fee of ₹125 crore, which would translate into ₹250 crore for the six-month period.
“We have once again agreed to the eleventh-hour request by Multi Commodity Exchange of India Limited (MCX), which according to MCX is for the ‘last time’ for one more time,” 63 Moons Technologies said in an exchange filing.
"We sincerely wish that this 'last time' really happens someday, so that we can deploy our excellent team of exchange technology engineering group in mega promising opportunity in the new digital world," the company added.
On the other hand, MCX said that “To ensure all Stakeholders are better prepared to migrate to the new Commodity Derivatives Platform and to ensure necessary compliances, the Company was obligated and has decided to extend the support services being rendered by its existing software vendor, 63 Moons Technologies.”
63 Moons Technologies shares have been on a winning streak for the last five trading sessions, climbing from ₹168 to the current trading price of ₹245.60, resulting in a stellar gain of 46.20%.
In contrast, Multi Commodity Exchange of India shares tumbled 14% to ₹1411.40 apiece during Friday's trade.
During the March-ending quarter, the company recorded a net profit of ₹5 crore, compared to a net loss of ₹5.75 crore in the same period last year. Its revenue from operations during the quarter reached ₹107 crore, 181.57% higher than the ₹38 crore generated in Q4 FY22.
For the fiscal year 2022–23, the company achieved a net profit of ₹28 crore, marking a substantial turnaround from the net loss of ₹61 crore in the previous fiscal year. The total revenue for FY23 stood at ₹272 crore, an increase from ₹144 crore posted in FY22.
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