Edelweiss Financial September-quarter Net Profit Jumps to Rs 79 Crore

Edelweiss Financial Services today reported Rs 79 crore net profit in the three months to September, up 72 per cent from Rs 46 crore it had reported in the year ago period.

Total income of the city-based diversified financial services company, which is into NBFC, insurance, stock broking and ARC rose 57 per cent to Rs 915 crore, company chairman Rashesh Shah said in a statement.

He said the net profit, excluding insurance rose to Rs 90 crore from Rs 62 crore, a growth of 45 per cent.

Group total revenue rose to Rs 1,730 crore, up 43 per cent from Rs 1,209 crore, while net income jumped 55 per cent to Rs 157 crore from Rs 102 crore, which excluding insurance stood Rs 180 crore from Rs 132 crore, up 37 per cent.

Asset quality of the overall credit book continued to remain under control with gross NPAs at 1.24 per cent and net NPAs at 0.19 per cent indicating a provision coverage ratio of 84 per cent. Its capital adequacy ratio stood at 20.6 per cent.

Mr Shah said, "Markets have consolidated in the second quarter and economic activity is expected to pick up on the back of a positive agenda of the central government. Macro- environment is stable and softening of global commodities prices augurs well for the economy.

"We continue to focus on de-risking our business model and building sustainability in our performance through long-term strategy. Continuing the trend of recording a consistent growth in profitability, current half year is the sixth consecutive half year of growth in our profits following the culmination of diversification phase in FY12," he said.

Fund based income rose to Rs 738 crore from Rs 465 crore a year ago.

Fee and commission income rose to 127 crore from Rs 88 crore. This income includes income from broking, corporate finance advisory, asset management, wealth advisory businesses and fees from credit business.

Broking income constitutes about 6.9 per cent of the total revenue for the quarter. Gross life insurance premium jumped 77 per cent to Rs 42 crore from Rs 24 crore a year ago.

The aggregate borrowings at the end of this quarter are marginally higher at Rs 15,017 crore up from Rs 14,942 crore as at the end of the previous quarter. Excluding back to back borrowings, our net gearing is 3.7 times compared to 3.8 times at the end of the previous quarter.

Total credit book of the group rose to Rs 9,789 crore compared to Rs 8,829 crore at the end of previous quarter.

Retail finance book rose to Rs 2,487 crore from Rs 2,245 crore, a growth of 11 per cent.