Pure-play Bro­ker­ages Di­ver­sify Busi­ness as Rev­enues Fal­ter

And re­lated in­come see steep fall as wealth man­age­ment and NBFC busi­nesses record faster growth

The Economic Times - - Companies: Pursuit Of Profit -

Mum­bai: Ma­jor In­dian bro­ker­ages have come a long way from be­ing broking fo­cused en­ti­ties and di­ver­si­fied into other busi­nesses to beat the chal­lenges faced by the in­dus­try. As these new busi­nesses grow faster, firms ex­pect broking rev­enues to con­trib­ute lesser to their to­tal rev­enue in the com­ing years.

Sam­ple this. Eq­uity bro­ker­age and re­lated in­come con­trib­uted nearly 56% of the con­sol­i­dated rev­enue from op­er­a­tions for IIFL Hold­ings in 2006-07. The same stood at 10.6% at the end of De­cem­ber.

The story played out sim­i­lar for Reli­gare En­ter­prises that saw rev­enue from broking fall­ing to 6% of rev­enues, from 66.4% in 2006-07. Moti­lal Oswal Fi­nan­cial Ser­vices saw rev­enue from eq­uity broking and other re­lated ac­tiv­i­ties seg­ment fall­ing to 49.4% from nearly 90% in 2006-07.

UN­DER PRES­SURE

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