Edelweiss Financial Services on Wednesday reported almost 50 percent decrease in its consolidated net profit at Rs 134.49 crore for the first quarter ended June 30, 2019.
Company’s net profit in the corresponding April-June quarter of previous fiscal was at Rs 263.32 crore.
Total income (consolidated) increased to Rs 2,545.93 crore in the three months to June of 2019-20, according to Rs 2,476.14 crore annually past period, Edelweiss Financial said in a regulatory filing.
“Current economic slowdown isn’t restricted to only one sector, but has affected virtually all regions of the market…,” Edelweiss Financial Services Chairman and CEO Rashesh Shah said.
Shah further said that”while we anticipate first half of current fiscal to be muted, we’re expecting that second half will be better with signs of an easing liquidity environment with measures taken by the RBI and the government resulting in an expected economic recovery, though it might take some time”.
Shah said the organization’s diversified business model helped it to confront the challenging times. In 2017 the firm had summarized strategic expansion plan to separate three companies – charge, insurance and advisory – to separate entities with their own strategic investors, ring-fenced capital base and separate boards.
Edelweiss said its present long-term investor Kora Management is investing a total of Rs 875 crore in the business of which Rs 525 crore will be in Edelweiss Global Investment Advisors (EGIA).
“We’re also close to finalising other marquee investors for this first outside investment around in EGIA, which is restricted to Rs 1,400 crore (USD 200 million) whatsoever. The Edelweiss Group will continue to be a majority shareholder in the 3 things,” he said.
At the end of first quarter of the financial, firm’s retail charge publication was at Rs 16,981 crore and corporate charge book stood at Rs 16,987 crore.
Complete credit reserve including distressed credit stood at Rs 42,599 crore at end June. The gross profits assets (NPAs) stood at 2.33 percent and net NPAs in 1.24 percent.
“Distressed credit company has funds employed of Rs 8,631 crore and recoveries stood at Rs 1,076 crore for Q1FY20,” the firm said.
Stock of Edelweiss was trading 0.98 per cent up at Rs 143.80 on BSE.