The Investment Trust of India Ltd.
BSE: 530023 |
Sector: Financials |
NSE: THEINVEST |
ISIN Code: INE924D01017 |
BSE
15:32 | 03 Mar
|
95.00
|
-1.15 (-1.20%)
|
OPEN
96.15
|
HIGH
98.35
|
LOW
95.00
|
NSE
15:24 | 03 Mar
|
94.25
|
-1.05 (-1.10%)
|
OPEN
97.30
|
HIGH
98.00
|
LOW
94.00
|
OPEN |
96.15 |
PREVIOUS CLOSE |
96.15 |
VOLUME |
3122 |
52-Week high |
178.00 |
52-Week low |
60.10 |
P/E |
|
Mkt Cap.(Rs cr) |
489 |
Buy Price |
94.00 |
Buy Qty |
1.00 |
Sell Price |
96.40 |
Sell Qty |
1.00 |
OPEN |
97.30 |
PREVIOUS CLOSE |
95.30 |
VOLUME |
11083 |
52-Week high |
174.35 |
52-Week low |
62.40 |
P/E |
|
Mkt Cap.(Rs cr) |
489 |
Buy Price |
94.65 |
Buy Qty |
10.00 |
Sell Price |
94.95 |
Sell Qty |
8.00 |
OPEN |
96.15 |
CLOSE |
96.15 |
VOLUME |
3122 |
52-Week high |
178.00 |
52-Week low |
60.10 |
P/E |
|
Mkt Cap.(Rs cr) |
489 |
Buy Price |
94.00 |
Buy Qty |
1.00 |
Sell Price |
96.40 |
Sell Qty |
1.00 |
OPEN |
97.30 |
PREVIOUS CLOSE |
95.30 |
VOLUME |
11083 |
52-Week high |
174.35 |
52-Week low |
62.40 |
P/E |
|
Mkt Cap.(Rs cr) |
489.44 |
Buy Price |
94.65 |
Buy Qty |
10.00 |
Sell Price |
94.95 |
Sell Qty |
8.00 |
The Investment Trust of India Ltd. (THEINVEST) - Chairman Speech
Company chairman speech
FORTUNE FINANCIAL SERVICES (INDIA) LIMITED
ANNUAL REPORT 2008-2009
CHAIRMAN'S REPORT
Dear Shareholders,
I feel privileged to address you once again in a year full of shocking
events for the global as well as Indian bourses and your Company performed
well under the exceptionally challenging environment.
Circumstances have changed drastically since my last interaction with you.
India shining story which we observed for last five years has hit a sudden
roadblock this year, signs of which were apparent from the start of this
financial year. Sensex, after hitting a crest of 21,200 on January 10, 2008
has reversed its direction and started its one sided downward journey
during the year. The financial year 2009 was characterised by very high
level of volatility on Indian Bourses amidst increasing global uncertainty.
Though seeds of this fall were sown during previous financial year itself
with surfacing of sub-prime crisis in US, things became grave after fall
of US financial giant Lehman Brothers in October 2008 followed by the
failure of a number of other financial firms across globe. Shock and panic
waves ran across the globe. Suddenly risk aversion became the theme and
emerging markets had to bear the brunt. Bell weather Sensex lost more than
4,000 points during October 2008 and never seemed to recover since then.
Decoupling theory which we have been talking suddenly looked like a
theoretical fallacy. It indeed was. In spite of all our glorious growth
numbers, it is money which keeps market growing. FIIs pumped in USD
28.30bn during previous 3 years (FY06-08). Hit by redemption pressure and
security concerns, they withdrew USD 11.96 bn from Indian Market during
FY08-09. Initial half of last financial year, our domestic institutions
tried to support the market but failure of global financial firms created
panic like situation and domestic institutions also joined FIIs in selling
Indian market.
US sub-prime is half the story. Even corporate numbers were not supporting
those in exorbitant multiples. One side corporate top-line took a hit from
reduced demand; bottom-line was hit because of very high commodity prices
during first half of the financial year. Making matter worse was adverse
exchange rate movement and speculative derivative position created by
Indian corporate which further dented the bottom-line. Since November IIP
numbers have turned negative. Exports are dwindling and Capital Account
turned negative for the first time during Q3 FY09 after a gap of 10 years.
During FY09 we managed to log a GDP growth of 6.7%. Though there has been
improvement in sentiment across investor community post election results
and FIIs have pumped massive USD 5.5bn between March 09 and May 09 we are
not out of woods yet.
KEY HIGHLIGHTS:
Following are the key highlights of the year;
* Increased branch and franchisee network to 106 from previous 49;
* Combined staff strength has grown to 332 from 243 during previous year;
* Insurance distribution and NBFC , the new business verticals launched
during the year;
* 73% increase in number of clients in capital market and 189% in commodity
market segment over the previous year.
Most prominent part of our growth strategy is focus on in-house research to
cater to different segments of clients and meet their rising expectations.
We sincerely believe in-house research is not only an essential part of
business requirement it also gives control over quality of input and
relative advantage in this intense business environment. We expanded our
research team with highly qualified people having robust experience in the
market.
FINANCIAL PERFORMANCE:
In line with broad market consolidated turnover went down by 19% to
Rs.3,999.66 lacs compared to previous year consolidated turnover of
Rs.4,666.31 lacs. The company has incurred net loss of Rs.65.06 lacs
during the year compared to Net Profit of Rs.1,655.36 lacs in the previous
year. Depressed market along with business expansion initiatives have led
to depressed financials. The networth of the company increased to
Rs.8,223.31 lacs from Rs.5,926.25 lacs in FY08 due to issue of additional
equity.
ROAD AHEAD:
Rising unemployment and lowered economic activity has taken a toll on
secondary market volumes while risk aversion by banks and financial
institutions has led to reduced activity in the primary market. This has
impacted both investment banking and equity broking business adversely.
Depressed market has adverse bearing on insurance distribution business as
well. There has been marked improvement in secondary market activity after
thumping victory of new government, still sentiment is cautious. Additional
liquidity pumping by global central banks are trying to defer the pain but
it cannot be avoided for long. We will have to gear up to take these
challenges head on by collective team work, optimum resource utilisation
and cost control measures.
I express my sincere gratitude to you for showing trust in us during these
difficult times and seek constant patronage.
J.T. Poonja
Place: Mumbai Chairman
Date : May 23, 2009
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