Edelweiss Financial Services Limited Q2FY20 Unaudited Results

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Edelweiss Financial Services Limited, India’s leading diversified financial services company, declared its unaudited, limited reviewed results for the quarter ended 30th September, 2019 today.

Q2FY20 Highlights:

  • Total Revenue INR 2,405 Cr (INR 2,676 Cr for Q2FY19)
  • Ex-Insurance Pre Provision Operating Profit INR 373 Cr (INR 677 Cr for Q2FY19)
  • Ex-Insurance Profit After Tax INR 93 Cr (INR 322 Cr for Q2FY19)
  • Ex-Insurance RoA for the quarter at 1.0 % and RoE 5.1 %
  • Consolidated Profit After Tax INR 51 Cr (INR 272 Cr for Q2FY19)
  • Group Gross Networth INR 9,870 Cr which includes CDPQ investment in equity convertible instrument
  • Debt Equity reduced further to 3.4x (5.2x for Q2FY19)

Edelweiss is a diversified financial services firm with presence in India’s most scalable and profitable sectors. Our various businesses address the needs of multiple client segments and demographics. During the last few years, several of Edelweiss’ “young” businesses have gained ground, while the mature businesses have scaled up into sustainable business models, with increased market share in their respective segments.

The diversified model has helped us in this tough environment as Capital Light businesses anchored the profits this quarter.

Speaking on the occasion,  Rashesh Shah, Chairman and CEO, Edelweiss Financial Services Limited said:“Q2 has been an eventful quarter for us. Close on the heels of the Government’s announcement of a Rs. 25,000 Cr. fund for stalled realty projects, we have announced the launch of our first completion financing platform and the first fund of its kind in the private sector in partnership with the South Korean firm Meritz Financial Group. Also as stated in the last quarter, we are well on our way to completing the investment cycle in our investment advisory business with Sanaka Capital partnering us. Our strategy to create three well-capitalised verticals in Credit, Insurance and now Advisory, with independent governance and great growth potential is complete. This quarter we also signed three Co-origination agreements with SBI, Central Bank of India and Punjab National Bank enabling us to expand our SME and home loans businesses.

We are the only firm to have raised equity thrice over the last challenging year; and the first tranche of funding from investors has been received. This shows the confidence that investors have reposed in us and our business model. We now have sufficient firepower to enable us to scale up our existing businesses in Retail Credit, Wealth Management and Alternatives Asset Management significantly.

Our six businesses across three verticals are a blend of dominance (ARC, Wealth Management, Alternatives Asset Management, Capital Markets), growth (Retail Credit, Life Insurance, General Insurance) and maturity (Corporate Credit). Each one of them is now well-capitalised to benefit from the tailwinds of the India opportunity. We have repeatedly shown agility in how we capture the opportunity based on market conditions, and our conviction in the India growth story – and in ours – remains undimmed.”