Keen on building MF book than brokerage services biz: Geojit Financial

Satish Menon

Executive Director | Executive Director

• Keen on building MF book than brokerage services biz: Geojit Financial

• Yield on MF distribution higher than brokerage biz: Geojit BNP

• Next 2-3 qtrs could be good on improved sentiment: Geojit BNP

Geojit Financial Services posted a strong set of second quarter earnings. The consolidated Q2 operational income was up 9 percent at Rs 79.4 crore versus Rs 73.1 crore for the same quarter last fiscal. The year on year Q2 (YoY) total income was up 8 percent at Rs 87.4 crore versus Rs 80.9 crore.

Profit after tax was up 23 percent at Rs 16.9 crore versus Rs 13.7 crore YoY. The revenue growth for the company was led by financial product income, which was up 113 percent at Rs 10.4 crore versus Rs 4.9 crore YoY.

Sharing further details on the second quarter performance and the outlook going forward Satish Menon, Executive Director, Geojit Financial said our focus has been on diversifying the business from just a stock broking company to asset based fee model. We are keen on building mutual fund book rather than brokerage services.

This change began from Q1 of last fiscal and we build mutual fund AUM through systematic investment plan (SIP). Our SIP book last September was Rs 86 crore and this September it is Rs 126 crore.