5paisa Capital (5PAISA) Q4 15/16 earnings summary

Executive summary

• FY16 shifted to a net loss of ₹54.98m from net profit of ₹35.31m in FY15, driven by proprietary trading losses amid extreme market volatility.

• Proprietary activity was pruned from January 2016 as retail broking and mutual fund distribution began through an online platform.

Financial highlights

• Gross total income was negative ₹12.18m versus ₹113.71m in FY15; revenue from operations was negative ₹12.18m versus ₹113.70m.

• PBT was a loss of ₹76.98m versus profit of ₹51.73m; net loss was ₹54.98m versus net profit of ₹35.31m.

• Finance costs were ₹18.05m versus ₹22.95m; employee benefits expense rose to ₹21.63m from ₹20.19m, while other expenses rose to ₹25.01m from ₹18.83m.

• Year-end cash and cash equivalents were ₹78.30m versus ₹30.73m; total cash and bank balances were ₹128.30m versus ₹280.73m, including fixed deposits pledged for guarantees and exchange margins.

Outlook and guidance

• Retail broking and mutual fund distribution launched online in January 2016; a mobile app for securities trading and mutual fund investments received a good response.

• Technology investments included mobile- and tablet-friendly trading platforms, a browser-based platform, and added commodity and currency capabilities.