Companies

Edelweiss net jumps 41% to Rs 78 cr on robust income

PTI Mumbai | Updated on November 25, 2017

Diversified financial services major Edelweiss group today reported a 41 per cent rise in consolidated net profit at Rs 78 crore for the June quarter, on the back of higher fee income.

“This is the 11th quarter of consistent growth in our profit barring the exceptional second quarter of last fiscal.

The vibrancy in the capital markets in the run-up to the elections and post-Modi victory gave us a good quarter,” Rashesh Shah, Edelweiss Chairman and Group Chief Executive, told PTI.

The market activity gained around 40 per cent during the reporting quarter on the back of political optimism, Shah said, adding that as a result, there was an allround increase in our fee income, led by mutual funds, brokerage and other businesses.

“All this had both our revenue as well as our profits rising during the quarter,” Shah said.

Broking income constitutes about 7.4 per cent of the total revenue for the quarter.

He said the group’s asset reconstruction business has been clocking around 20 per cent returns. With a balance sheet of over Rs 17,000 crore, Edelweiss ARC is one of the top players in the sector.

Total income rose 31 per cent to Rs 815 crore from Rs 624 crore a year ago, Shah said, adding the net income ex-insurance stood at Rs 89 crore, up 29 per cent, from Rs 69 crore.

About successful diversification into all growth areas, Shah said, “The focus now will be on scaling up businesses, improving efficiency and productivity, strengthening balance sheet, risk management and compliance, instilling customer—centricity, upgrading technology and building leadership for the future.”

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Published on July 25, 2014
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