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Jul 12, 2013, 04.48 PM IST | Source: Moneycontrol.com

Geojit BNP Paribas Q1 net surges 85% on exception income

Kochi-based Geojit BNP Paribas Financial Services reported 85 percent year-on-year jump to nearly Rs 18 crore in the consolidated net profit for the quarter ended June 30, 2013 in the. Lower cost of operations coupled with an exceptional income contributed to the net profit surge.

Moneycontrol Bureau

Kochi-based Geojit BNP Paribas Financial Services reported 85 percent year-on-year jump to nearly Rs 18 crore in the consolidated net profit for the quarter ended June 30, 2013 in the. Lower cost of operations coupled with an exceptional income contributed to the net profit surge.  

According to Satish Menon, executive director, Geojit BNP Paribas Financial, the numbers are not strictly comparable y-o-y basis. The exceptional item was on account installment payment received due to the stake sale of in the institutional joint venture. It had sold it to BNP Paribas.

"We have reduced the share of broking in our business. Currently, it stood at 59 percent as against 69 percent a year back. We intend to bring down our dependency on brokerage business below 50 percent by March. We have significantly grown our business on three other verticals including the non-banking finance company, Saudi Arabian JV, our software company and our distribution network," he told moneycontrol.com.

Also read: Govt doles out extra dealer commissions in bond market

The NBFC christened as Geojit Credits doubled its credit book to Rs 200 crore while the persistently loss-making Saudi Arabian turned profitable at Rs 65 lakh after a long time.  Geojit Technologies, the software company too is expanding.

"In retail broking, we are now focusing more on internet and mobile broking. This is very cost effective. We have reduced our operating expenses through rationalizing of branches and man power," he said.

During the April-June quarter, operating expenses decreased 43 percent y-o-y to Rs 9 crore from 15.89 crore a year back. However, employee costs rose from 15 crore to 17.56 crore. Finance cost or the cost of funds nearly doubled from 6.2 crore to 11.1 crore during the same time.

"The brokerage industry is going through rough weather due to lack of retail participation. Hence, we would like to bring down our broking business. However, if the industry revives going forward, we would revise our strategy," Menon said.

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