Geojit Q3 profit down by 51 per cent

‘Weak brokerage income part of overall trend’

KOCHI: Geojit Financial services, a leading investment services company with a strong presence also in the Gulf countries, reported a 51 per cent drop in its net profit at Rs10.22 crore for the third quarter ending December 31, 2018, compared with that in the same period last year.

However, the profit reported for the period under review was 98 per cent up compared with that in the preceding quarter ending September 30, 2018.

The company witnessed negative growth on revenue as well as EBITDA reported for the quarter under review.

While the revenue at Rs76.44 crore was 24 per cent down compared with Rs100.74 crore the company turned in for the 3rd quarter in 2017-18, the EBITDA or the earnings before interest, tax, depreciation and amortization – a measure generally used by many corporates to gauge performance, for the quarter ending December 31, 2018 was lower by 45 per cent at Rs19.83 crore.

A statement from Geojit said the company added 24,000 new clients during the quarter under review. Commenting on the results, managing director of Geojit, CJ George (seen in the picture) said its retail Mutual Fund asset under management (AUM) has grown by 20 per cent over that in last year due to company’s focus on advice based distribution.

“There is a dip in our distribution revenue consequent to the implementation of full trail model of commission from October onwards. Brokerage related income is impacted by the overall trend in retail activity in capital market,” he added.

Geojit has around 987,000 clients, a network of 479 offices and has assets under custody and management worth over Rs38,500 crore.

BNP Paribas, C J George, founder and the managing director of Geojit, Kerala State Industrial Development Corporation (KSIDC) and Rakesh Jhunjhunwala are the prominent shareholders of the company.

Geojit Financial Services has an extensive presence in the Middle East region via joint ventures and partnerships – Barjeel Geojit Securities in UAE, Aloula Geojit Capital Company in Saudi Arabia, BBK Geojit Securities KSC, in Kuwait and QBG Geojit Securities in Oman.

The company also has a presence in Bahrain through a business partnership with Bank of Bahrain and Kuwait.

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