Inst'l biz to breakeven this qtr: Geojit BNP Paribas

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Inst'l biz to breakeven this qtr: Geojit BNP Paribas

In an interview with CNBC-TV18’s Udayan Mukherjee, CJ George, managing director, Geojit BNP Paribas, spoke about the results and his outlook for the company.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Geojit BNP See previous management interviews See what other Experts & Brokerages are saying about Geojit BNP Geojit BNP BSE | NSE 30/05/12 Are Mutual Funds betting on Geojit BNP?

Geojit BNP Paribas, which provides securities and stock broking services, said on Friday it has posted a net profit of Rs 7 crore in the quarter-ended September on net sales of Rs 71.3 crore.

In an interview with CNBC-TV18's Udayan Mukherjee, CJ George, managing director, Geojit BNP Paribas , spoke about the results and his outlook for the company.

Below is a verbatim transcript of the interview. Also watch the video.

Q: Can you take us through the current quarter? While QoQ you have seen pick up of 24% in revenues-where did that growth come from?

A: In terms of revenues, basically, most of the revenues have come from the brokerage-equity cash brokerage. Compared to year on year basis our revenues have come down from Rs 81 crore to Rs 71 crore, 12%

Q: So cash market volumes have picked up or has the contribution comes from futures and options?

A: I must tell you that there has been a change in structure of volume growth in stock exchange over period of time. Compared to last year there has been a reduction in cash market volumes by 21% and derivatives only in the market by 46%. Geojit has traditionally very strong base on the investor clients and hence 85% of our revenue comes from the cash market. Of late we have seen the movement in cash market volumes particularly last three weeks we are seeing around 30-40% growth in volumes in the cash market.

Q: What is going on with your institutional business by when do you think you will break even on that?

A: We will breakeven in the current quarter. We have strengthened the sales team in Europe and US and in the current quarter we are very confident of breaking even.

Q: So you are saying that the current quarter cash market volumes might actually be higher than the previous quarter the way the trend is moving?

A: Definitely, the way the trend is moving I am of the view that it should be up by 30-40% in the current quarter.

Q: Are these retail volumes you are talking about or HNIs?

A: I am talking about retail volumes including the NRI volumes. Also we have yesterday decided to go ahead with two join ventures in Kuwait and Oman for an NRI business.