The Hindu Business Line : JRG Securities Q1 net up 214%

JRG Securities Ltd has reported a 214 per cent growth in net profit to Rs 1.30 crore (Rs 41.52 lakh) for the first quarter of the current fiscal. Announcing the results after its maiden public issue and listing at the stock exchanges, the Chairman, Mr T.M. Venkitaraman, said that the company has posted good results despite the sluggish market conditions. Greater national visibility, opening of seven new regional offices and better penetration into new States like Gujarat, Punjab and Maharashtra have enabled the company to post better results.

The gross revenue from the capital market operations grew by 110 per cent to Rs 5.99 crore. But more importantly, the commodity broking business grew by 170 per cent to touch Rs 3.75 crore, Mr Giby Mathew, Executive Director of the company, said.

Gross income from commodity broking and insurance have grown to Rs 3.85 crore (Rs 1.47 crore).

In order to beef up the insurance broking and other financial services business, JRG plans to set up a new 50:50 joint venture company with Keynote Corporates Services. The new company is to be called Arteries Investor Services Ltd.

A major factor, which ensured the strident growth in revenue, was the steep rise in the client base of the company from 32,000 to 65,000. "The driving factor behind the good performance was the entry of a large number of new investors into the capital market, especially new investors from the rural markets across India," Mr Regi Jacob, Managing Director of the company, said.

The company has commenced trading in the Dubai Gold and Commodity Exchange.

The company has a subscriber base of 10,170 shareholders and had announced a 10 per cent dividend on the entire post issue paid up capital of Rs 12.79 crore during the previous fiscal.