The Hindu : Business : Geojit reports lower revenue

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Geojit reports lower revenue

Special Correspondent

JV in Saudi Arabia starts operations

KOCHI: Geojit Financial Services today announced its third quarter results for fiscal year 2008-09 following the meeting of its Board of Directors at Kochi. For the nine months that ended 31st December 2008, profit after tax (PAT) stands at Rs. 50.96 crore; for the quarter under review, the PAT stands at Rs. 38.63 crore. Company’s consolidated revenues for the nine month period has fallen by 17.9 per cent compared to the previous period on account of the shrinking market volumes (from Rs. 173.67 crore to Rs. 142.58 crore).

The consolidated revenue for the quarter under review has fallen by 44.84 per cent compared to the previous period (from Rs.80.89 crore to Rs. 44.62 crore). During the quarter under review, the company has received an amount of Rs.40 crore as compensation from BNP Paribas for discontinuing the commodity business.

The operating result for the period under review is a loss of Rs. 4.84 crore. This is on account of a decline in revenues as well as an increase in cost due to the opening of 100 new branches during the last one year which are yet to start making profits.

The joint venture in Saudi Arabia has started pilot operations and hence the share of expenses from inception to the tune of Rs. 3.7 crore is consolidated in the third quarter.

C.J. George, Managing Director of Geojit Financial Services said, “We have crossed the 500 branch mark and many of those new branches that were opened last year are yet to reach their profit potential. We are optimistic about the long term future of the economy and we expect to reap the benefits of this additional investment over the next two-three year period.”

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