Geojit revenue down 45% in Q3

Geojit Financial Services (GFS) recorded a net profit of Rs 38.63 crore in Q3 of the current fiscal year on account of Rs 40 crore received from BNP Paribas for discounting the commodity business.  The operating result for the period under review has a loss of Rs 4.84 crore. A meeting of the Board of Directors held today at Kochi approved the results of the third quarter.

For the nine months ended 31st December 2008, net profit stands at Rs.50.96 crore, a company press release said.  The company’s consolidated revenue  for the nine month period has fallen by 17.9% (from Rs.173.67 crore to Rs.142.58 crore) and the  consolidated revenue  for the quarter under review has fallen by 44.84% to Rs 44.62 crore from   Rs.80.89 crore. 

The release added that the poor performance in Q3  was  on account of a decline in revenue  as well as an increase in cost due to the opening of 100 new branches during the last one year which are yet to deliver  profit. The joint venture in Saudi Arabia has started pilot operations and hence the share of expenses from inception to the tune of Rs.3.7 crore is consolidated in the third quarter which again had an adverse impact on the profitability.

The company  crossed the 500 branch mark during last year.

The institutional joint venture with BNP Paribas, BNP Paribas Securities India Private Limited has started acquiring market share even in the current difficult times. The joint venture is yet to finalize its accounts for the period and hence it is not consolidated in this quarter.

However, on account of its first year operations, this joint venture company has estimated a loss of Rs.9 crore for the nine month period which will be consolidated in the annual accounts, the release added.