Revenue hit looms for all brokerages

The flip-flop in tariffs has kept markets on edge and investors guessing. C.J. George, chairman and managing director at Geojit Financial Services, tells Puneet Wadhwa on email that the impact of tariffs on domestic corporates is expected to be limited, owing to the strong capital raised over the past three to four years. Edited excerpts:

- C.J. George CMD, Geojit Financial Services

You are one of the largest full-service brokerages in India with nearly ₹1 trillion worth of assets under management. How are you as a brokerage coping with the sudden dip in trading volumes?

The brokerage business has always been historically volatile, and preparing for downward cycles is in our organisational DNA. Through cost optimisation and building alternative revenue streams, we have always managed downturns. That said, brokerage revenues for all players in the industry will take a hit. Geojit has been expanding the distribution business for some time now, which is relatively less affected than brokerage flows. We will continue to focus on growing the retail wealth business, as we have in the past.

By when do you see primary markets reviving?

If the secondary market is dull, the fallout is felt in the primary market. The strain is heavier when the primary market freezes. The next wave of activity in primary issues will likely come after US trade policies settle and there is greater predictability in the world's largest economy.