Final Dividend of 70% on the paid-up value of Re.1 per share

At its meeting at Kochi on 23rd May 2008, the Board of Directors of Geojit Financial Services declared a final dividend of 70% on the paid-up value of Re.1 per share for 2007-08. The company had given dividend @ 40% for 2006-07 & 2005-06, and in 2004-05.

BNP Paribas to acquire 35% stake in Geojit Technologies for Rs.60 crore:At its meeting at Kochi on 23rd May 2008, the Board of Directors of Geojit Financial Services has in principle accepted an offer from BNP Paribas to acquire 35% stake in the fully owned subsidiary company Geojit Technologies Ltd. which is into software development. During 2007-2008, Geojit Technologies had started developing software for BNP Paribas for some of their European operations. The current investment is to scale up the software development and technology outsourcing business of Geojit Technologies Ltd.

Geojit to shut down commodities business

At its meeting at Kochi on 23rd May 2008, the Board of Directors of Geojit Financial Services has in principle decided to surrender its membership in various commodity exchanges held by its wholly owned subsidiary. This is to enable BNP Paribas to get approval from RBI for the open offer subsequent to their acquisition of 27.18% stake in March 2007. The Board has in principle accepted the offer of compensation of Rs.40 crore by BNP Paribas for surrendering memberships in the various commodity exchanges. This is subject to applicable regulatory approvals.

YoY

Net profit of Geojit Financial Services for FY2007-08 went up by 133% to Rs. 58.66 crores from Rs. 25.21 crores in FY2006-07. When compared to FY2006-07, consolidated revenues for FY2007-08 went up by 78% to Rs.238.31 crores from Rs.133.79 crores. The company has also provided Rs 29.19 crores for income tax for the fiscal year 2007-08. The meeting of the Board of Directors held in Kochi on 23rd May’08 has approved the audited accounts after full review by the auditors.

Q4 FY2007-08 on Q4 FY2006-07

For Q4 of the fiscal year ended March 2008, consolidated revenues of the company rose by 78% to Rs.64.35 crores from Rs.36.14 crores for the same quarter of the previous fiscal year while net profit shot up by 106% to Rs. 11.82 crores from Rs.5.74 crores. PBT rose to Rs.18.06 crores from Rs.9.6 crores, an increase of 88%.

Net profit Margin and Earnings Per Share

The Net Profit Margin for the quarter ended Mar.’08 was 18% as compared to the same quarter in the previous year which was 16% and for the fiscal year ended Mar.’08 it was 25%. The Earnings Per Share (EPS) for the fiscal year ended Mar.’08 (Apr.’07 to Mar.’08) on Re.1 per share is Rs.2.81.

Future income contributors – overseas Business Ventures and distribution business

Growing at more than 100% a year is Barjeel Geojit Securities, Geojit’s joint venture with the Al Saud group which is headquartered at Dubai, UAE, and has branches in Abu Dhabi, Ras Al Khaimah, Al Ain, Fujairah, Sharjah and Muscat.

Geojit’s other joint venture – Aloula Geojit Brokerage Company in Saudi Arabia will shortly be operational. Geojit is aiming for a significant market share in Saudi Arabia’s capital markets which have a trading volume of USD 2.5 to 3 billion a day.

The distribution business is also growing at close to 100%. In FY2007-08, the income from distribution has risen by 88% to Rs.17.95 crores. Focus will continue on scaling up distribution business in mutual funds and life insurance.

This fiscal year, the company will be opening more than 125 new branches and plans for an additional 150 over the next fiscal year. More than 107,000 new clients were acquired over the last fiscal.

Sourced From: Prana Public Relations

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