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Smallcap stock jumps 6% after reporting 53% YoY increase in net profits

Published 17-10-2024, 05:24 pm
© Reuters.  Smallcap stock jumps 6% after reporting 53% YoY increase in net profits
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Small cap stock, which offers a complete spectrum of financial services, surged nearly 6 percent following a 53.20 percent year-on-year growth in net profit for Q2 FY25.

Share price variations:

With a market capitalization of Rs. 4,157.13 crores, Geojit Financial Services Ltd (NS:GEOJ). rose to an intraday high of Rs. 152.90 representing a 5.73 percent increase from its previous closing price of Rs. 144.60 per share.

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Reason for the Rise:

According to exchange filings, Geojit Financial Services Ltd. reported a 53.20 percent year-on-year increase in net profit to Rs 57.44 crore, in Q2FY25 from Rs 37.47 crore in Q2FY24. On a quarter-on-quarter basis, net profit surged by 25.33 percent, rising from Rs. 45.81 crore in Q1 FY25.

Revenue from operations grew by 50.19 percent year-on-year to Rs. 218.54 crore, compared to Rs. 145.51 crore in the same period last year. Sequentially, revenue increased by 20.62 percent from Rs. 181.18 crore in Q1 FY25.

For the first half of FY25, revenue rose by 52.86 percent to Rs. 399.72 crores, up from Rs. 261.48 crores in H1 FY24, while net profit showed an increase of 73.33 percent, reaching Rs. 103.22 crores compared to Rs. 59.55 crores in the previous year.

About the company:

Established in 1987, Geojit Financial Services Ltd is a leading investment services company in India, with an AUM of Rs. 1,03,358 crore as of Q1 FY24, serving approximately 14.12 lakh customers. With a vast network of around 503 offices and robust online platforms, the company offers a comprehensive range of financial services, including online broking, financial product distribution, portfolio management services, margin funding, and advisory services.

Geojit has a presence across 19 states and 2 union territories in India, as well as in the UAE, Bahrain, Kuwait, and Oman. Around 78 percent of its branch network and 76 percent of its clientele are based in Tier II and Tier III cities.

As of Q1 FY25, 50 percent of Geojit’s revenue comes from the brokerage business, 17 percent from the distribution of third-party products, 21 percent from interest against portfolios, 2 percent from software, and 5 percent each from depository services and other sources.

As of September Rajesh Jhunjhunwala and associates holds 1.72 crores shares of Geojit Financial Services Ltd valued at Rs. 249.05 crores.

Written By: Joseph Pv

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