Choice International a Fintech conglomerate had reported a drop in the profit
Fintech conglomerate Choice International reported a 44% drop in its March quarter profit due to excessive operating expenses. Revenue rose 25.77% to Rs.49.68 crore in the last quarter whereas operating expenses went up from 152.53% to Rs.27.35 crore. The board also approved raising Rs.60 crore through the rights issue.
These funds would be used to strengthen the stronghold in the stock brokerage business and increase growth in other segments like loan distribution, insurance broking, wealth management, investment banking, etc.
The financial year of 2021 reported a net profit of Rs.16.70 crore which was 35% more than the previous year, whereas the revenue stood at Rs.168.74 crore, which is 30% more than that of last year.
Major revenue was largely driven by stock brokerage income, even though non-banking services performed relatively lightly.
“The company’s digital initiative has started delivering dividends during this year. To add further speed to the initiative, we have several more products lined up that would drive the company’s revenue growth in coming years as well,” said the managing director of Choice International, Kamal Poddar