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Sunday, September 01, 2013

Financial Technologies tumbles to 52-week low

Financial Technologies (India) lost 18.93% to Rs 114.55 at 14:56 IST on BSE, with the stock extending recent slide

Meanwhile, the BSE Sensex was up 33.30 points, or 0.18%, to 18,434.36

On BSE, 47.42 lakh shares were traded in the counter compared with average volume of 9.01 lakh shares in the past one quarter.

The stock hit a 52-week low of Rs 102.05 in intraday trade today, 30 August 2013. The stock hit a high of Rs 143.15 so far during the day. The stock hit a 52-week high of Rs 1223.80 on 13 November 2012.

The stock had underperformed the market over the past one month till 29 August 2013, sliding 75.43% compared with the Sensex's 6.08% fall. The scrip had also underperformed the market in past one quarter, falling 83.18% as against Sensex's 8.67% fall.

The small-cap company has an equity capital of Rs 9.22 crore. Face value per share is Rs 2.

Shares of Financial Technologies (India) (FTIL) dropped 78.85% in August 2013 after its unlisted subsidiary, National Spot Exchange (NSEL) defaulted on payments to its investors. The NSEL had to shut down its operation since 1 August 2013 following the government direction in the wake of violation of certain rules. NSEL is grappling with the problem of payment settlement after the suspension. It has given eight-month plan to settle Rs 5574.31 crore to investors. NSEL is scheduled to make a payout every Tuesday for 30 weeks, ending in March 2014. FTIL is one of the two promoters of the NSEL.

The beleaguered bourse has already defaulted in the last two pay-outs as it was able to gather only Rs 92.73 crore in the first pay-out and Rs 12.05 crore in the second pay-out, out of the scheduled Rs 174.72 crore each.

On 27 August 2013, FTIL said that at a request received from NSEL it has given a bridge loan of Rs 177.23 crore to NSEL for making payments to small investors.

FTIL's net profit rose 6.84% to Rs 81.20 crore on 15.44% growth in total income to Rs 169.54 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Tuesday, 30 July 2013.

FTIL's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 17% to Rs 120 crore in Q1 June 2013 over Q1 June 2012. The company's profit before tax (PBT) surged 32% year on year (YoY) to Rs 110 crore in Q1 June 2013.

FTIL is among the global leaders in offering technology IP (Intellectual Property) and domain expertise to create and trade on next generation financial markets, that are transparent, efficient and liquid, across all asset classes including - equities, commodities, currencies and bonds among others. The group operates one of the world's largest networks of nine exchanges connecting fast-growing economies of Africa, Middle East, India and South East Asia. The group also has five ecosystem ventures to address upstream and downstream opportunities around exchanges, including clearing, depository, information vending and payment gateway, among others.