FTIL reports net loss of Rs 371.25 cr in Q4

Tags: News
Crisis-hit Financial Technologies India Ltd (FTIL) today reported a net loss of Rs 371.25 crore for the quarter ended March 31, 2014 due to lower sales and provisions made for doubtful loans and advances.

It had reported a net profit of Rs 87.81 crore in the year-ago period.

Total income fell by 69 per cent to Rs 59.21 crore during the fourth quarter of last fiscal from Rs 188.09 crore in the corresponding period of the previous year, FTIL said in a BSE filing.

Profit was down during the period under review as it made a provision of Rs 350.24 crore for doubtful loans, advances and trade receivables that pertain to subsidiary NSEL and other investments. The same was Rs 95 lakh in the same period of the previous fiscal.

For the full fiscal, the company reported a net loss of Rs 228.54 crore against a net profit of Rs 322.88 crore in the previous year.

Total income for the full financial year declined to Rs 462.13 crore from Rs 657.41 crore in 2012-13.

FTIL's Whole Time Director Dewang Neralla said: "Profit before provisions, diminution in long-term investment and taxes for the financial year ended March 31, 2014 stands at Rs 302 crore."

"The company has adopted a conservative approach and has made a provision of Rs 486 crore during the year," he added.

This provision includes provision of Rs 259 crore for equity investments, loans and other outstanding from NSEL and Rs 227 crore for diminution in value of other investments.

FTIL's subsidiary National Spot Exchange Ltd (NSEL) is facing Rs 5,600 crore payment crisis after the government in July last year, had ordered NSEL to suspend most spot trading contracts in view of violation of certain regulatory norms.

FTIL has been declared unfit by the Forward Markets Commission to run an exchange and ordered to pare its stake in Multi Commodity Exchange (MCX) to 2 per cent from 26 per cent at present. FTIL is the in process of divesting its stake.

Meanwhile, the company's board has recommended a final dividend of Rs 2 per share.

EDITORIAL OF THE DAY

  • Protocols need to be quickly put in place for the success of Digital India

    The government has kicked off Digital India initiative in style. Companies too have queued up in large numbers with bagfuls of money.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Simon J Evenett

Will Germany be able to deliver?

The BRICS aren’t the only countries whose stature has grown ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Gautam Gupta

The ‘fake’ issue needs to be taken seriously

E-commerce players are witnessing unbelievable growth globally. Competition is increasing ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture