FTIL shrugs off weak Q2 numbers

Financial Technologies (India) rose 1.08% to Rs 168.50 at 9:32 IST on BSE after net profit fell 61.16% to Rs 27.01 crore on 12.83% decline in total income to Rs 128.92 crore in Q2 September 2013 over Q2 September 2012.

The Q2 result was announced after market hours on Friday, 29 November 2013.

Meanwhile, the S&P BSE Sensex was up 69.12 points or 0.33% at 20,861.05.

On BSE, 89,000 shares were traded in the counter as against average daily volume of 15.10 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 1.91% at the day's high of Rs 169.90 so far during the day. The stock lost as much as 1.13% at the day's low of Rs 164.80 so far during the day.

The stock had outperformed the market over the past one month till 29 November 2013, rising 6.11% compared with the Sensex's 0.65% fall. The scrip had also outperformed the market in past one quarter, jumping 17.98% as against Sensex's 12.99% rise.

As on 30 September 2013, Financial Technologies (India) (FTIL)'s investments aggregating Rs 494.65 crore in and loans and advances to/receivables aggregating Rs 1173.52 crore from certain subsidiaries and a joint venture (JV) company, which presently have accumulated losses, but are expected to be recovered, and have their values unlocked in the near future, since these companies are already at various stages of executing their business plans and operations, with expected profitability, FTIL said.

In view of the developments in respect of its subsidiary National Spot Exchange (NSEL), during the quarter, on conservative basis, the company has made provision towards diminution other than temporary in value of long term investments of Rs 44.99 crore for its investment in NSEL, the company said.

Total outstanding loan of Rs 210.83 crore and interest thereon of Rs 1.79 crore, aggregating Rs 212.62 crore as on 30 September 2013, are dependent on the recovery by NSEL from defaulted members and NAFED and the recovery of amount from NSEL will be reviewed periodically, FTIL said.

There are some writ petitions, public interest litigation (PIL), civil suits filed against NSEL, wherein FTIL has also been made a formal party in these writ petitions and civil suits only, it being the holding company of NSEL, the company said. FTIL further added that it is a separate and independent legal entity and, as such, has no responsibility or liability whatever towards the dues of or claims against NSEL.

The writ petitions and civil suits are primarily against the various defaulting members of NSEL, failing which the claim has been made against NSEL as guarantor and failing which against other parties including FTIL. Therefore, at this stage, there are no direct ascertainable financial claims against the company, and hence, direct financial implications on the company, if any, that may arise due to ultimate payment default on NSEL cannot be ascertained, FTIL said.

FTIL is among the global leaders in offering technology IP (Intellectual Property) and domain expertise to create and trade on next generation financial markets, that are transparent, efficient and liquid, across all asset classes including - equities, commodities, currencies and bonds among others. The group operates one of the world's largest networks of nine exchanges connecting fast-growing economies of Africa, Middle East, India and South East Asia. The group also has five ecosystem ventures to address upstream and downstream opportunities around exchanges, including clearing, depository, information vending and payment gateway, among others.

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