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PNB Gilts’ profit zooms by 309%

PNB Gilts’ profit zooms by 309%
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First Published: Tue, Apr 22 2008. 11 49 AM IST
Updated: Tue, Apr 22 2008. 11 49 AM IST
New Delhi: PNB Gilts Limited, a leading primary dealer in the government securities market has posted excellent results for the financial year 2007-08. As per the published results profit before tax has zoomed from Rs16.38 crore in the previous financial year to Rs67.01 crore, an increase of 309%.
Due to higher tax incidence, profit after tax has increased from Rs15.96 crore in FY 2006-07 to Rs45.16 crore in FY 2007-08.
The increase in profits comes in the face of tough conditions in the debt market, wherein benchmark yields pulled up by almost 38 basis points in the last month of the financial year itself, on the back of higher inflationary concerns. The company has also continued to fulfill all its obligations as a primary dealer both in the primary and secondary market.
The Board has recommended a final dividend of 15% or Rs1.50 per share with face value of Rs10 subject to approval by shareholders in the Annual General Meeting.
The excellent performance of the company during the year was made possible by increase in income while reducing overall expenses. The company achieved a 37% growth in total income at Rs172.63 crore (Rs126.14 crore last year), while the total expenses declined by 4% to Rs105.62 crore (Rs 109.76 crore last year).
The company’s good performance has been a result of reorientation of the trading strategy and risk management systems to respond optimally to the emerging environment. The total turnover of the company during the year amounted to Rs59868 crore compared to Rs33745 crore last year.
The company also strengthened its fee-based business like, Project appraisal, Loan syndication and Mutual Fund distribution.
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First Published: Tue, Apr 22 2008. 11 49 AM IST
More Topics: PNB Gilts | results | profit | dividend | tax |