The Hindu Business Line : Geojit's net up 133%, to pay 70% final

The net profit of Geojit Financial Services has grown 106 per cent to Rs 11.82 crore (Rs 5.74 crore) for the last quarter of 2007-08. Profit before tax increased 88 per cent to Rs.18.06 crores from Rs. 9.6 crores.

For the year 2007-08, the net profit has grown 133 per cent to Rs 58.66 crore (Rs 25.21 crore). While approving the audited financial results for last year the Board has also recommended a final dividend of 70 per cent.

The company has also decided to shut down its commodity business. At its meeting in Kochi on Fridaytoday, the Board of Geojit has in principle decided to surrender its membership in various commodity exchanges held by its wholly-owned subsidiary.

The Board has accepted the offer of compensation of Rs. 40 crore by BNP Paribas for surrendering memberships in the various commodity exchanges. This would be subject to applicable regulatory approvals, a press release from the company said.

"This should pave the way for BNP Paribas getting the final approval from the Reserve Bank of India for going ahead with the open offer. BNP Paribas had acquired 27.18 per cent stake in Geojit in March 2007. Once the RBI approval is obtained, BNP Paribas should be able to go ahead with the open offer since all other permissions have been obtained," Mr C. J. George, Managing Director of Geojit, said.

Tech co

The Board has also accepted an offer from BNP Paribas to acquire 35 per cent stake in the fully-owned subsidiary company, Geojit Technologies Ltd, at a cost of Rs 60 crore. The company which is into software development had started developing software for BNP Paribas for some of their European operations from 2007-08. The current investment is to scale up the software development and technology outsourcing business of Geojit Technologies Ltd.

For the year, the net profit margin was up 25 per cent. The earnings per share for the fiscal for the one rupee share was Rs 2.81.

Overseas biz

Among the overseas business ventures, Barjeel Geojit Securities, Geojit's joint venture with the Al Saud group which is headquartered at Dubai, has been growing at more than 100 per cent. Geojit's other overseas joint venture - Aloula Geojit Brokerage Company in Saudi Arabia will be operational shortly, the release said. Geojit is aiming for a significant market share in Saudi Arabia's capital markets which has a trading volume of $2.5 to 3 billion a day.

The company's business of distributing mutual funds and insurance products has also been growing at close to 100 per cent. The income from distribution has risen by 88 per cent to Rs.17.95 crore. Focus will continue on scaling up distribution business in mutual funds and life insurance, the release added.

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