Focus on MF biz; resurgence of broking biz to aid growth: Geojit Financial

Geojit Financial Services reported a good set of third quarter earnings, the assets under management saw a robust growth of over 90 percent this quarter.

The consolidated total income for the company in Q3 came in at Rs 100.7 crore versus Rs 75.5 crore for the same quarter last fiscal. The Year on Year (YoY) EBITDA was up 30.7 percent (up 16.7 percent QoQ) at Rs 36 crore versus Rs 27.5 crore.

The EBITDA margins came in at 35.7 percent versus 36.5 percent YoY & 35.3 percent QoQ. The net profit was up 39.4 percent at Rs 20.9 crore versus Rs 15 crore YoY.

Discussing the Q3 performance and the outlook going forward, Satish Menon, Executive Director, Geojit Financial Services said the growth basically was due to shift in focus from being a mere stock broking company to someone who wants to create long-term wealth from Mutual Funds.

The change in strategy has worked for us and the Mutual Funds income has gone up significantly, said Menon.

He said from December'16 to December'17 the equity AUM has gone up by 77 percent to Rs 2700 crore, and debt AUM of Rs 600 crore. Going forward as well with focus on SIP, the AUMs are expected to grow at above 75 percent at least for the next three years, said Menon.

Broking business in the quarter gone by also did well compared to same quarter last fiscal, said Menon, adding that the business is coming out of its stagnant volume with increase in activity in the market. Expect this buoyancy to continue for next few years, he added.