Mumbai: Geojit Financial Services Ltd has posted a 41.32% drop in quarterly net profit owing to higher operating expenses and an exceptional income it earned last year, a top official said.
The company declared a net profit of Rs71 million for the April-June quarter as compared to Rs121 million a year earlier. The total income has risen to Rs473.4 million from Rs417.5 million a year ago.
“It had earned exceptional income of Rs47.4 million from sale of investments last year and opened 75 new branches, which added to the cost, but revenues from them would trickle in later,” Managing Director, C. J. George said.
The firm, in which French bank BNP Paribas has a stake, plans to add 100 more branches to its current network of 460 branches, he told Reuters from the southern town of Kochi.
Last year, BNP Paribas picked up a 27.18% stake in the company and bought warrants that would take its stake to 34.35% upon conversion into shares.
George also said its technology outsourcing unit, Geojit Technologies Ltd, would bring in revenues by the end of the current quarter along with its Saudi Arabian operations.
This would help in mitigating the expected drop in revenue resulting from the fall in the Indian stock market. India’s benchmark stock index has shed a third so far this year.
Geojit shares were trading 5.81% lower at Rs37.30 in the Mumbai market.