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Sunday, Oct 12, 2008
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Business Daily from THE HINDU group of publications Sunday, Oct 12, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Financial Performance Corporate Results - Financial Services Geojit Financial net drops 58% in Q2
Our Bureau Mumbai, Oct. 11 Thinning volumes on the stock exchanges are bringing down profits at broking firms, as the second quarter results of two brokerages indicate. Kochi-based Geojit Financial Services on Saturday reported a 58-per cent drop in its consolidated net profit for the second quarter . Net profit fell to Rs 5.22 crore, from Rs 12.51 crore in the corresponding year ago quarter. A day earlier, Motilal Oswal Financial Services announced a 17-per cent dip in net profit for the quarter, largely on account of lower revenues from broking. Its broking-related revenues fell 27 per cent. However, revenues from segments such as investment banking advisory, fund-based income and asset management fees saw an increase in the quarter. At Geojit, total income decreased by two per cent to Rs 45.89 crore from Rs 47.02 crore. Total expenditure for the quarter increased 22 per cent to Rs 40 crore. “In the last twelve months we acquired over one lakh new clients. In the same period, 92 new branches were opened which are yet to realise their full business potential. This has resulted in a corresponding increase in the operating costs,” said Mr C. J. George, Managing Director of Geojit Financial Services. The diluted Earnings per Share had fallen to 25 paisa from 60 paisa. Going forward, it would be difficult to maintain even these levels of revenue if the markets do not improve, said Mr. George. Geojit’s shared ended down 19 per cent at Rs 20.35 on the BSE on Friday. Motilal Oswal closed three per cent lower at Rs 75.55. Geojit reports 55% drop in net Geojit seeks SEBI nod to extend validity of warrants to BNP Paribas Falling volumes hit broking cos Brokerages feel the heat as volumes dry up More Stories on : Financial Performance | Financial Services
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