The Hindu : Business : Geojit’s net at Rs. 12 crore

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Thursday, Jul 19, 2007
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Business

Geojit’s net at Rs. 12 crore

Special Correspondent

To form venture with BNP Paribas Securities to serve FIIs

Commission from insurance, mutual fund distribution up
Joint venture company in Dubai planned

KOCHI: Kochi-based Geojit Financial Services Ltd. (GFSL) recorded a net profit of Rs.12.10 crore for the first quarter ended June 30, 2007, after providing Rs.4.89 crore for tax.

The net profit was Rs.7.07 crore for the same quarter in the previous year. Income for the quarter increased by 29.06 per cent to Rs.41.75 crore and profit after tax went up by 71.5 per cent, a press release issued here said.

During the quarter, the company participated in the offer for sale of shares of BSE. A post-tax income of Rs.3.67 crore was realised from this deal. Geojit Commodities Ltd, a GFSL subsidiary, improved its income by 17.32 per cent. It posted Rs.5.39 crore against Rs.4.59 crore in the same quarter of the previous year. Commission from insurance and mutual fund distribution also improved substantially, the release said.

Barjeel Geojit Securities LLC, a joint venture in the UAE, also performed well during the quarter. The company recorded a 33 per cent increase in income and 41 per cent increase in net profit.

Other projects

A board meeting of the company held in Kochi approved formation of a 50:50 joint-venture company in India, with BNP Paribas Securities Asia, to serve foreign institutional clients subject to regulatory approvals. The board approved an investment of up to $ 2 million in this project.

The company will invest Rs.30.05 crore in Aloula Geojit Brokerage Company in Saudi Arabia. With this, Geojit Financial Services Limited will be the single largest shareholder of the company which has received the licence from Capital Market Authority (CMA) of Saudi Arabia to start domestic brokerage business.

The board also decided to form a joint-venture in Dubai to deal in UAE-listed shares in DFM (Dubai Financial Market), IPOs and distribution of home-grown funds in the UAE. The company plans to make an initial investment of Rs.16.10 crore for taking up 49 per cent of the proposed paid up share capital.

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