• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, July 25 The consolidated net profits reported by three broking houses for the quarter ended June 30, 2008, were down.

Indiabulls Financial Services’ net profit fell 4.1 per cent to Rs 146.8 crore from Rs 153.1 crore in the corresponding year-ago quarter.

The net profit of Emkay Global Financial Services declined 70 per cent to Rs 1.5 crore (Rs 5.3 crore) and JM Financial’s slipped 4.2 per cent to Rs 18.34 crore (Rs 19.15 crore).

Indiabulls Financial Services’ total income, on the other hand, increased to Rs 564.6 crore (Rs 442.80 crore). Its standalone net profit more than doubled to Rs 105.10 crore (Rs 51.80 crore) and total income increased to Rs 465.50 crore (Rs 113.6 crore).

Emkay’s total income went up 29 per cent to Rs 30.70 crore (Rs 23.8 crore).

But the company’s standalone net profit slumped 83 per cent to Rs 79 lakh (Rs 4.8 crore) as its total expenditure increased to Rs 25.9 crore (Rs 16.07 crore); total income increased to Rs 28.40 crore (Rs 22.30 crore).

“These are testing times for the capital markets. The last quarter has seen a sharp correction and our outlook for the coming period remains cautious. The benefits of our investments in new verticals of investment banking and insurance broking are expected in the second half of the current year,” said Mr Krishna Kumar Karwa, Managing Director, Emkay Global Financial Services Ltd.

JM Financials’ total income rose to Rs 129.80 crore (Rs 125.80 crore) and standalone profit surged to Rs 2.6 crore (Rs 37 lakh); total revenues jumped to to Rs 5.6 crore (Rs 1.8 crore).

“Given the difficult market scenario and the nature of the company’s capital market linked businesses, profit margins have come under pressure. However, despite the market turbulence and growing inflation, the employees’ share of profits and benefits as well as other overhead fixed costs continue to remain constant, thereby impacting the company’s share of profits,” stated a release by JM Financial.

Indiabulls Securities also announced its standalone results for the first quarter of the current fiscal. Its net profit dipped by 15 per cent to Rs 37.40 crore (Rs 44.40 crore).

While its total income increased to Rs 123.20 crore (Rs 107.40 crore) and its total expenditure jumped to Rs 63.40 crore (Rs 39 crore).

The share prices of Indiabulls Financial Services and Securities were up 2.25 per cent and 5.56 per cent respectively.

The former closed at Rs 280 and the latter at Rs 70.3.

Emkay Global Financial Services closed down 4.36 per cent at Rs 82.35 and JM Financial closed up 0.54 per cent at Rs 1,315.9.

More Stories on : Stock Markets | Financial Services | Outlook

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Reliance Ind slumps on growth concern

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line