Integrated financial services provider, JM Financial, today reported a 17.17% decline in its net consolidated profit to Rs 24.41 crore for the quarter ended June 30, 2011 on the back of reduced margins and rising interest rates.
The company had registered a net consolidated profit of Rs 29.47 crore in the corresponding period last fiscal, the company said in a filing to the Bombay Stock Exchange.
The company's total income rose by 7.82% to Rs 208.12 crore as compared to Rs 193.03 crore in the same period last year.
During the quarter, the company's investment banking business sealed seven deals during the quarter across equity fund raising, debt fund raising and mergers and acquisition, the statement said.
The investment advisory and distribution business added 41 new franchisees during the quarter, which increased the company's presence to 139 cities across the country, it added.
"We saw a challenging first quarter. The fee-based businesses as well as funds based business are under very strong pressure, reducing margins," JM Financial Group Chairman Nimesh Kampani said in a statement issued here.
More From This Section
"Inflationary pressures and rising interest rates in India, coupled with uncertainty in the global markets over the economic stress in the Eurozone and the United States of America have exerted pressure on the capital markets worldwide," he added.
At the end of the quarter, the combined AUM/AUA of the private equity fund, real estate fund and special situations fund stands at around Rs 1,550 crore, the statement said.