PremiumMumbai: Choice International Limited, a fintech conglomerate, has reported a 44% decline in its consolidated net profit for the March quarter due to higher operating expenses.
Revenue for the quarter rose 25.77% to ₹49.68 crore. Operating expenses rose 152.53% to ₹27.35 crore.
The board, at its meeting on Friday, also approved raising ₹60 crore via rights issue as per regulatory norms.
The proceeds from the funds raised would be deployed to leverage its stronghold in the stock brokerage business and drive exponential growth in other business segments like loan distribution, wealth management, insurance broking, investment banking etc.
For fiscal year 2021, the firm reported a net profit of ₹16.70 crore, up 35% from ₹12.43 crore a year ago.
Its revenue for the fiscal stood at ₹168.74 crore, 30% from ₹128.82 crore last year.
The revenue growth for the year under review was largely driven through the stock brokerage income though the non-banking financial services (NBFC) business performed relatively in light of the pandemic, the firm said in a notice to exchanges.
“The company’s digital initiative through its fintech model has started delivering dividends during the pandemic year. To add further momentum to the initiative, we have several more fintech products lined up for launch that would drive the company’s revenue growth in the next financial year," said Kamal Poddar, managing director, Choice International.
The firm said its board has approved the reappointment of Ashok Kumar Thakur and Kanhaiya Lal Berwal as additional (non-executive) independent director of the company for a second term with effect from 14 July for the term of five years, subject to approval of members in the ensuing Annual General Meeting.
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