Geojit Q2 profit plunges more than two-thirds to Rs5.16 cr

Several factors contributed towards poor show during quarter

KOCHI: The profit after tax (PAT) for Geojit Financial Services Ltd plunged 69 per cent year on year from Rs16.87 crore to Rs5.16 crore for the second quarter ending September 30, 2018, whereas the drop in profit sequentially was 59 per cent to Rs12.67 crore.

The revenue on the other hand contracted by  five per cent year-on-year from Rs87.44 crore to Rs82.73 crore, whereas sequentially the revenue improved by 2 per cent from Rs81.86 crore.

The fall in earnings before interest, taxation, depreciation and amortization (EBITDA) was 25 per cent year on year from Rs30.83 crore to Rs23.09 crore.

The company’s assets under custody and management stood at Rs34,137 crore as on September 30, 2018. The company statement said that Geojit added 21,850 new clients during the quarter under review. Commenting on the results, the managing director of Geojit Financial Services, CJ George (seen in the picture), said the floods in Kerala in August resulted in a decline in company’s revenue from the state.

“The company also had to incur expenses in connection with disaster relief work including the contribution to CMDRF and these had an impact on the profits. Excluding these expenses, our PBT would have been Rs20.89 crore, which is 3 per cent up compared with the previous quarter,” said George noting that the company also added 321 employees over the last 12 months resulting in an increase in employee cost.

Geojit said that an income tax claim of Rs6 crore towards compensation for discontinuing commodities business received from BNP Paribas during the year 2008-09 was pending with the Income Tax Appellate Tribunal.

The IT ruling went against the company and the company has decided to appeal against this in the High Court of Kerala. The IT ruling necessitated the company to make a provision for that amount during this quarter and this has also worked against the bottom line during the quarter, according to a statement.

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