Edelweiss Financial Services Limited, India's leading diversified financial services company, declared its unaudited, limited reviewed results for the quarter ended 31st December 2019 today.
- Total Revenue INR 2,650 Cr (INR 2,897 Cr for Q3FY19)
- Ex-Insurance Profit After Tax INR 74 Cr (INR 273 Cr for Q3FY19)
- Ex-Insurance RoA for the quarter at 1.0% and RoE 4.1%
- Consolidated Profit After Tax INR 17 Cr (INR 226 Cr for Q3FY19)
- Group Gross Net worth INR 10,163 Cr which includes investments of CDPQ, Kora Management and Sanaka Capital in equity convertible instruments
- Debt Equity (Ex BMU assets & Episodic) reduced further to 2.9x (4.2x for Q3FY19)
Speaking on the occasion, Mr. Rashesh Shah, Chairman and CEO, Edelweiss Financial Services Limited said: "In this quarter, we strengthened the balance sheet with the equity raised in our Advisory businesses. This is the second equity raise, after the first round of equity we raised in our Credit business in 2019. Our debt-equity ratio is now a very conservative 2.9x, giving us great headroom for future growth. Liquidity was ample throughout the quarter.
The operating highlights of this quarter were the 42% growth in AUM of Asset Management in our Advisory business in spite of the credit dislocation. In order to transition quickly to a retaildominated book, we reduced our Corporate Credit exposure by selling down part of our portfolio to funds. Reducing the Corporate Credit exposure will remain a key focus area for us. The weak economic climate resulted in elevated credit costs which, along with the cost of managing liquidity, resulted in muted earnings. We have created a separate vertical called Edelweiss Global Investment Advisors or EGIA which will house all our Advisory businesses. We will look to strengthen EGIA and make this more independent in the near future.
We are very encouraged by the determination with which the Government and RBI have focused on specific measures to help financial services companies by nudging the Banking sector in terms of transmission of both liquidity and rate reductions. While we remain conservative in our immediate outlook, I am confident these concerted measures will bear fruit before long, and the current situation will reverse in 2-3 quarters."
Shares of Edelweiss Financial Services Ltd. was last trading in BSE at Rs.89.25 as compared to the previous close of Rs. 90.15. The total number of shares traded during the day was 47420 in over 546 trades.
The stock hit an intraday high of Rs. 91.55 and intraday low of 88.05. The net turnover during the day was Rs. 4259408.