Stocks

Brokerages’ profits grow on non-broking operations

Our Bureau Mumbai | Updated on November 08, 2012 Published on November 08, 2012

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Income from financing is main contributor in Sept quarter



Non-broking activities such as financing continued to be the main revenue contributor for brokerages in the September quarter as well.

Though income from broking fell marginally, most of the broking houses reported growth in profit and revenues, both sequentially as well as year-on-year.

The average daily turnover on the NSE, however, increased to Rs 10,450 crore in September quarter against Rs 9,800 crore in June quarter.

India Infoline has reported a net profit of Rs 65.83 crore for the quarter ending September 2012 against Rs 22.07 crore in the same period last year. The financial institution’s financing and investment grew to Rs 457.87 crore (September 2012) compared with Rs 228.49 crore in the year-ago period. Income from the equities and broking segment fell to Rs 134 crore from Rs 138.8 crore in the September 2011 quarter.

Interest and other income on fund-based activities for JM Financial increased to Rs 113.25 crore for the quarter ending September 2012 against Rs 84.46 crore in the same quarter last year. However, income from their brokerage division declined to Rs 27.40 crore at the end of September 2012 against Rs 33.26 in the corresponding period last year. The overall net profit increased to Rs 33.72 crore (Rs 27.28 crore).

For Edelweiss Financial Services, the segment of interest and treasury income contributed Rs 416.97 crore at the end of September 2012 against Rs 277.87 crore in the year-ago period. Consolidated net profit increased to Rs 41.58 crore at the end of September 2012 from Rs 26.32 crore in the corresponding period last year.

“The second quarter has seen higher activity in credit, investment banking, broking and corporate debt syndication. We have also been able to demonstrate consistently improved financial and business performance sequentially in the past four quarters as a result of significant diversification in our businesses and the execution efficiencies that we have been constantly working on,” said Rashesh Shah, Chairman and CEO, Edelweiss Financial Services

The second quarter of this fiscal has brought in sizeable “other income” for Geojit BNP Paribas.

The company reported a whooping net profit of Rs 45.31 crore in the September quarter compared with Rs 6.05 crore in same quarter last year.

The brokerage had received Rs 35.97 crore during the quarter as a result of a stake-sale in its joint venture with BNP Paribas for Institutional Broking.

Net income also grew to Rs 59.64 crore from Rs 56.25 crore.

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Published on November 08, 2012
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