Written by: Press Trust of India
2 min readNew DelhiDec 1, 2013 01:33 AM IST
First published on: Dec 1, 2013 at 01:33 AM IST
Jignesh Shah-led Financial Technologies India Ltd FTIL on Saturday posted an over 61 per cent drop in standalone net profit to Rs 27.01 crore in the second quarter after making a provision for its investment in embattled subsidiary NSEL.
The company had reported a profit of Rs 69.55 crore a year earlier,it said in a regulatory filing.
FTIL said that following developments at National Spot Exchange Ltd NSEL,it made a provision towards diminution other than temporary in value of long term investment of Rs 44.99 crore for its investment in NSEL.
The group was plunged into a crisis in August after the government asked NSEL to halt trading in some contracts due to violation of norms. The exchange is grappling with the settlement of Rs 5,600 crore of dues.
Profit has come down mainly because of the value of long-term investment made by FTIL in NSEL has come down after the payment crisis, an analyst said.
Income from operations fell to Rs 92.61 crore in the quarter ended September 31 from Rs 124.98 crore as revenue from its software business declined. Expenses rose to Rs 68.16 crore from Rs 55.28 crore a year earlier.
FTIL,the holding company for the Shah-led group,also operates a network of exchanges globally. In India,it has set up the Multi Commodity Exchange of India Ltd,the MCX Stock Exchange Ltd and NSEL.
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