Pure-play Brokerages Diversify Business as Revenues Falter
And related income see steep fall as wealth management and NBFC businesses record faster growth
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.