Sun, 25 Aug 2019

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)

More Iraq News

Access More

Sign up for Iraq News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!