• Underlying results: Despite what Rathi called one of the market’s worst quarters, revenue increased 17-18% and profit 23-24% on a business basis. He said ESOP valuation and changes in the value of investments such as Rathi Global are non-business-related adjustments; ESOP accounting is not a company expense.
• Reported figures: Excluding valuation and ESOP effects, consolidated revenue grew 17%, and profit after tax rose 23% to ₹238 crore; profit before tax was ₹319 crore.
• Guidance progress: Against full-year revenue guidance of ₹1,415 crore, the company had reached ₹693 crore, or 49%, in six months. Against PAT guidance of ₹460 crore, it had achieved ₹238 crore, or 52%.
• Market outlook: Rathi attributed market weakness largely to FII sales and higher oil prices amid the US-Iran issue, while saying corporate earnings were holding up and small- and mid-caps were doing well. He expects the market and volumes to improve over the next 6 months and said the company continued to attract record inflows in the weak market.