Edelweiss Q3 profit drops 93% to Rs 17 crore; debt-to-equity ratio improves
Consolidated expenditure of the company increased to Rs 2,598.06 crore in Q3FY20 over Rs 2,439.14 crore in Q3FY19.by ETMarkets.com
Edelweiss Financial Services on Friday posted 92.61 per cent year-on-year (YoY) drop in consolidated profit at Rs 16.71 crore for the quarter ended December 31. The firm had reported a profit of Rs 226.11 crore in the corresponding quarter last year.
Total revenue from operations declined 8.41 per cent year-on-year to Rs 2,639.65 crore during the quarter under review.
Consolidated expenditure of the company increased to Rs 2,598.06 crore in Q3FY20 over Rs 2,439.14 crore in Q3FY19.
The company announced its results post market hours. Earlier in the day, the scrip settled 1 per cent down at Rs 89.25. On the other hand, the benchmark BSE Sensex settled 202 points, or 0.49 per cent down at 41,257.
Consolidated debt-to-equity ratio improved further to 2.9 times against 4.20 times in Q3FY19.
Rashesh Shah, Chairman and CEO, Edelweiss Financial Services, said: “In this quarter, we strengthened the balance sheet with the equity raised in our advisory businesses. This is the second equity raise, after the first round of equity we raised in our credit business in 2019. Our debt-equity ratio is now a very conservative 2.9 times, giving us great headroom for future growth.”
According to the company, operating highlights were 42 per cent growth in AUM of asset management in advisory business and the sell-down of some of corporate credit exposure to completion financing funds.
“We have a comfortable equity position as we received the first tranche of funds (Rs 300 cr) from investors Kora and Sanaka and our D/E ratio now stands at a very conservative level of 2.9 times,” the company said.
Edelweiss added that it will continue to focus on increasing retail to 70-75 per cent of the total book.