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Geojit Financial Services Ltd.

BSE: 532285 Sector: Financials
NSE: GEOJITFSL ISIN Code: INE007B01023
BSE LIVE 15:29 | 16 Aug 102.10 2.15
(2.15%)
OPEN

100.50

HIGH

104.10

LOW

99.35

NSE 15:50 | 16 Aug 102.40 2.45
(2.45%)
OPEN

100.00

HIGH

104.20

LOW

99.50

OPEN 100.50
PREVIOUS CLOSE 99.95
VOLUME 56438
52-Week high 114.10
52-Week low 34.00
P/E 47.93
Mkt Cap.(Rs cr) 2,422
Buy Price 102.10
Buy Qty 835.00
Sell Price 102.65
Sell Qty 500.00
OPEN 100.50
CLOSE 99.95
VOLUME 56438
52-Week high 114.10
52-Week low 34.00
P/E 47.93
Mkt Cap.(Rs cr) 2,422
Buy Price 102.10
Buy Qty 835.00
Sell Price 102.65
Sell Qty 500.00

Geojit Financial Services Ltd. (GEOJITFSL) - Chairman Speech

Company chairman speech

DEAR SHAREHOLDERS

I take great pleasure in warmly welcoming you to this Annual General Body Meeting(FY15-16). As you know we are now in the 29th year of operations and today we are a leaderin the retail financial services sector in India. Geojit's advantage has so far beenprimarily an outcome of our many years of client focussed initiatives encompassingtransparent service technological innovation and adhering to rigid compliance standards.

Let us now look back at the year under review. The FY15-16 was a time of seismictransition for us. The shared opinion in the industry is that there is a dampening ofretail investor enthusiasm for direct participation in the market despite an increase inthe number of new trading accounts. There are many market and regulator related reasonsfor this retail investor fatigue but we in the industry must face up to the idea that thesituation is unlikely to change unless service responsibility and investor education istaken up as a priority. It may be interesting to note that your company has also been atthe forefront in providing services to Capital Markets investors entering the marketthrough the indirect route.

OVERVIEW OF THE FINANCIAL RESULTS OF FY15-16 AND DIVIDEND

While the annual turnover for this year was Rs. 271.96 Crores against Rs.326.38 croresthe corresponding figure for the last year. This a decrease of about 17% also reflectson the profit numbers. The Profit after Tax(PAT) this time around is Rs.37.61 crores asopposed to Rs.77.36 crores achieved last year an '51'% decline. Consequently theconsolidated diluted earnings per share(EPS) also decreased from Rs. 3.35 last year to Rs.1.61 this year. While expenses remained flat a 17% decline in the top line severelyimpacted the bottom line.

Your company's JV in Saudi Arabia incurred a significant operating loss arising from asevere crash in the price of crude oil and the consequent market crash which also affectedthe bottom line.

Despite such lower numbers the Board has decided to declare interim dividend for thisyear at Re. 1/- per share. We do this as we are confident of our company's future growthprospects as well as in keeping with our tradition of rewarding shareholders.

KEY DEVELOPMENTS IN FY15-16

In a less malleable macro economic environment we continue to keep our edge bymaintaining our operational agility. As we go past FY15-16 we continue to build ourcapabilities implement various transformation initiatives and embrace the dynamics of thefuture.

During the year we were able to do add close to 95000 new clients taking our clientbase to 8.23 lakhs. This is a major achievement for us and speaks volumes of thededication of the company staff. We are at present the 3rd largest Non-Bank broker in NSEin terms of unique clients and 7th largest in all categories.

Another remarkable achievement has been introduction of our custom designed trading andinvestment platform branded Selfie on 23 September 15. The trading platform gives usersabsolute control over their investments with timely research inputs to make soundinvestment decisions. Selfie is the first of its kind in India to have an exhaustive rangeof features in a single platform. Apart from the Selfie web release the company alsolaunched its feature rich tablet edition which is optimised for better use of the addedscreen space and touch capabilities. The tablet's exclusive edition for Android and iOS isavailable in app stores for download.

To expand our reach we also went in for new B2B tie up with Banks these are SVC bankAndhra bank and Oriental Bank of commerce.

SERVICE RESPONSIBILITY

While we have always kept wealth creation by clients as our top priority last year wetook the major step of actively discouraging day trading and derivative trades by smallretail clients. We took this decision because we discovered that many inexperiencedclients were losing money because of impetuous day trading and use of derivatives. Thisbad experience often deterred them from making more long term wealth creating commitmentin the market.

We therefore reduced employee incentives for day trading and derivatives.

We have decided to reemphasize on the business of distribution of Mutual Fund products.Equity Mutual Funds have in the long run always created wealth for clients. Investorscan rely on the time and expertise of trained investment managers to create long termwealth for them. Furthermore our advisory desk will be able to guide new investors intochoosing the right MF solutions to achieve their financial goals.

GOVERNANCE

I believe that robust corporate governance is a critical topic because while the growthof the capital markets and investing culture is key to our future revenue growth how wellwe do and how we cope with the inevitable challenges of the future will depend on ourstrength health and highest corporate governance standards as a corporate body. There canbe no lacunae or weakness in this and the company has always strived to ensure that itsorganization is efficient compliant with all rules and possesses in built safeguardsagainst corporate malfeasance. In so far as internal governance goes our audit committeecontinuously monitor the activities of the company to ensure internal compliance and thatproper working procedures are followed at all times.

I believe that maintaining our core values of trust integrity and innovativenesstherefore will become all the more important and i as chairman will ensure that theseremain as firmly rooted in our culture as ever.

AREAS OF IMPROVEMENT

Though we have improved our rankings among the Mutual Fund distributers we still needto go a long way in being one of the serious service provider in this segment. In thecoming days the board along with our senior management team will focus on increasingfootprints in this area.

OUR SOCIAL COMMITMENT

Our company continues its robust commitment to enhancing public welfare. Over the lastmany years we have allocated progressively larger sums and company manpower resources tocreating new social initiatives. In total we allocated over Rs. 1.66 crores towards CSRprojects. In response to the Chennai floods 2016 the company dispatched emergency floodrelief material in the form of blankets potable water medicines and mats. Our communityhealth initiative Sparsh provided much needed funding medical treatment to 59 people.These included financial assistance for major surgeries dialysis treatment andchemotherapy we also fund educational initiatives for the benefit of needy sections ofsociety. In the last year we provided assistance for around 700 students both forschooling as well as for professional training.

THE VIEW AHEAD

While we look at the coming year with utmost caution we hope the financial marketsscenario will unfold for the good. Renewed enthusiasm among the retail investors andbetter corporate earning in the Q4 are few positive indications.

As a first step to better our performance we will continue to leverage on our skilledmanpower. A highly trained and motivated staff will lead to greater efficiencies andbetter client satisfaction. It will boost our brand identity and consolidate our presencein the mind space of the Indian investor.

Secondly there is communication and outreach. As you know our company has played apioneering role in spreading the investing culture in India right from its nascent stagein the midlate 1980's. Since then we have used both the media as well as direct contact tospread the word about the necessity of investing. It has worked wonders and we shall bebroadening and deepening our above the line and below the line efforts in the year tocome.

Thirdly we shall continue to remain invested in the realm of technological innovation.Geojit Technologies continuing commitment to research and development will spearhead manynew technological ventures and open up new horizons and opportunities for us to benefitfrom.

Fourthly as mentioned is distribution. We shall be able to interact more dynamicallywith our clients once they realize the full benefits of investing in Mutual Funds. Thiswill help us deepen our bonds with our clients and position us better in the industry.

While concluding I take this opportunity to thank the entire Geojit team for theirenthusiastic and dedicated efforts. Also I thank all our esteemed customers businesspartners and shareholders for their continued support

Regards

AP Kurian

Chairman