Business

Edelweiss Fin Services PAT halves to Rs 132 crore in Q1 FY20

ANI | August 14, 2019 03:13 PM
Edelweiss Group provides a broad range of financial products and services to a diversified client base.

Mumbai (Maharashtra) [India], Aug 14 (ANI): Diversified financial services firm Edelweiss said on Wednesday its consolidated profit after tax (PAT) fell to Rs 132 crore during April to June from Rs 264 crore in Q1 FY19 due to the economic slowdown and liquidity crunch facing several sectors.

At the same time, total revenue moved up to Rs 2,546 crore in Q1 FY20 from Rs 2,481 crore in the corresponding period of the previous year.

"The current economic slowdown is not confined to just one sector but has impacted virtually all areas of the economy. This is evident from the results of many companies this season," said Chairman and CEO Rashesh Shah.

"While we expect H1 FY20 to be muted, we are hoping that H2 FY20 will be better with signs of an easing liquidity environment with steps taken by the Reserve Bank of India and the government leading to an expected economic recovery, although it may take some time. In these challenging times, what has helped us is our diversified business model," he said in a statement.

Edelweiss' credit business had a muted first fiscal quarter due to higher liquidity management and higher credit costs. At the end of Q1 FY20, retail credit book was Rs 16,981 crore and corporate credit book was Rs 16,987 crore.

Total credit book including distressed credit stood at Rs 42,599 crore at the end of Q1 FY20. Gross non-performing assets (NPAs) were at 2.33 per cent and net NPAs at 1.24 per cent.

The distressed credit business had capital employed of Rs 8,631 crore and recoveries stood at Rs 1,076 crore for Q1 FY20. Edelweiss ARC continues to be the largest asset reconstruction company in the country.

In the advisory business, Edelweiss is planning an investment round of up to 200 million dollars (about Rs 1,400 crore). The company's assets under administration of wealth management business grew to Rs 1.06 lakh crore at the end of Q1 FY20 while the asset management business stood at Rs 36,300 crore.

In another statement, Edelweiss Group said that US-based Kora Management will be investing up to 125 million dollars (about Rs 875 crore) in the group.

"Our customers will benefit immensely from Kora's acumen in technology and financial services across emerging markets, and their investment will help us scale our businesses in a competitive market environment," said Shah. (ANI)

Have something to say? Post your comment
Must Read
Strict legal action to be taken against those encroaching roads outside their shops: MC Commissioner
Strict legal action to be taken against those encroaching roads outside their shops: MC Commissioner
Mansa to host Punjab Games Women under 25 again in November, DC
Mansa to host Punjab Games Women under 25 again in November, DC
Dedicated to 550th Birth Anniversary of Guru Nanak, International Sikh Youth Conference and Interfaith Global Summit on 19-20 October
Dedicated to 550th Birth Anniversary of Guru Nanak, International Sikh Youth Conference and Interfaith Global Summit on 19-20 October
Sant Ravidas Temple demolition finds resonance in Haryana, Oppn scrambles to corner Dalit votes
Sant Ravidas Temple demolition finds resonance in Haryana, Oppn scrambles to corner Dalit votes
Ram Temple not political issue, but matter of faith of entire Hindu society: senior RSS leader Vaidya
Ram Temple not political issue, but matter of faith of entire Hindu society: senior RSS leader Vaidya
Guru Ram Das’s 485th `Gurpurab’ celebrated at Khalsa College Campus
Guru Ram Das’s 485th `Gurpurab’ celebrated at Khalsa College Campus
Distribution of safety kits to Municipal Corporation Safai Karmchari/ragpickers under Swachhta hi Sewa event organized by HPCL Jalandhar
Distribution of safety kits to Municipal Corporation Safai Karmchari/ragpickers under Swachhta hi Sewa event organized by HPCL Jalandhar
Inspector Kikar Singh appointed as new SHO of Dakha
Inspector Kikar Singh appointed as new SHO of Dakha
Work at Sri Kartarpur Sahib Corridor to be completed by 31st October : Vijay Inder Singla
Work at Sri Kartarpur Sahib Corridor to be completed by 31st October : Vijay Inder Singla
Over 6,500 youth take part in recruitment drive in J-K
Over 6,500 youth take part in recruitment drive in J-K
MP, MLAs, DC and CP inaugurates three days spiritual fest in form of digital museum at LKC
MP, MLAs, DC and CP inaugurates three days spiritual fest in form of digital museum at LKC
Hi-end digital museum of State Government provides divine experience to Jalandhar Residents
Hi-end digital museum of State Government provides divine experience to Jalandhar Residents