Brokerage firm Aditya Birla Money has reported a consolidated net loss of Rs 4.8 crore for the third quarter of fiscal 2011 compared with a net profit of Rs 3.8 crore for the same period last year.
The company?s net sales for the December quarter stood at Rs 25.5 crore, a 15.6% decline over the same period in the previous year. On Tuesday, the company?s scrip fell 1.1% to Rs 31.3 on the BSE. The stock had touched a 52-week low of Rs 29.1 on December 10, 2010.
On Tuesday, the firm appointed Sudhakar Ramasubramanian as its managing director for a 3-year period beginning February 1, 2011. Pankaj Razdan, deputy CEO of financial services division of Aditya Birla Group, who had taken additional charge as ?manager? of Aditya Birla Money since the departure of managing director Kanwar Vivek in October, will now give up his role as ?manager?. Razdan remains the deputy CEO of the financial division of the group.
Aditya Birla Money lost about Rs 103 crore in October, reportedly because it used, Options Maxima, a strategy tailor-made for high net worth individuals. The strategy involved trading in equity options where fund managers either short sold Nifty and bought options or bought Nifty and short sold options. Kanwar Vivek, managing director of Aditya Birla Money, put in his papers soon after the loss losses came to light. Since his departure, there has been some speculation over Razdan?s future.