Edelweiss Financial Services Ltd

BSE: 532922 | NSE: EDELWEISS | ISIN: INE532F01054 
Market Cap: [Rs.Cr.] 4,160.27 | Face Value: [Rs.] 1
Industry: Finance & Investments

Management Discussions
MANAGEMENT

ECONOMY: REVIEW AND OUTLOOK

Indian economy faced considerable macro challenges during FY14, the most prominentbeing sharp deterioration in Balance of Payments (BoP) situation. Fears of QE tapering bythe US Fed starting May 2013 sent jitters across the globe with emerging marketswitnessing sharp capital outflows and India was no exception. Combination of very largecurrent account deficit and sudden outflow of capital especially from bonds led to aprecipitous decline of ~20% in the rupee exchange rate in a short span of 3-4 months.Businesses were impacted through currency depreciation, rise in input prices and increasein cost of capital (as amidst falling rupee, RBI responded with interest rate hikes). Allthese developments impacted business sentiments severely. In some sense, one could saythat reverberations of the global financial crisis that started in 2008-09 in US, spreadto Europe in 2010-11, reached the shores of the Emerging Markets (EMs) in 2013 in the formof BoP crisis.

However, situation began to stabilise in late FY13 as the government and RBI tookseveral effective steps to curb gold imports and attract foreign capital. Global concernsalso subsided that time, thus supporting domestic measures. Further, as exchange ratemoved into undervalued territory, it began to assist exports and import-competing sectors,thus helping narrowing of current account deficit. Today, India's BoP situation hasimproved significantly with Current Account Deficit (CAD) for FY14 coming down sharply to1.7% of GDP from ~5% in FY13. Capital flows have recovered and rupee has also stabilisedat a comfortable level. In addition to BoP situation, India has made considerable progresson fiscal consolidation front too. For the last two years, government has not only madesignificant attempts to reduce oil subsidies but has also maintained sanctity of targetsset out at the time of Budget. To be sure, fiscal consolidation has been achieved at thecost of cutting plan expenditure, but it did send out a strong signal to businesses,investors and ratings agencies alike that prudence is finally returning after years offiscal profligacy. Given the improvement in twin deficit, India is not being counted in'fragile five' anymore.

However, growth challenges continue to persist. We have certainly emerged out of aphase of macro-vulnerability and we have also arrested growth deceleration but signs ofeconomic turnaround are still few and far between. FY14 GDP growth is 4.7%, making it thesecond straight year of sub-5% growth. Even high frequency indicators do not point towardsany imminent revival. The industrial production has been stagnant for several quartersnow, PMI-Services is in contraction zone for last six or seven months, credit growth andmoney supply have slowed considerably, non-oil and non-gold imports have also beencontracting and in recent quarters, corporate commentary suggests that even ruralconsumption has slowed down. What's more, both the levers of macroeconomic policy -monetary as well as fiscal are contractionary at this stage. It is only exports which isexhibiting a favourable trend but that too is highly dependent on external demand.

And as we crystal gaze into FY15, one can only hope for a modest acceleration in growthat best. The new government which has received a clear mandate in the general electionswill have to contend with several challenges.

The first one is reviving stalled investment projects. Previous Government had set upCabinet Committee on Investment (CCI) to fast track approval process around a year ago andsince then it is believed that projects worth 5-6% of GDP have been cleared, but what ispuzzling is that even three quarters later, there are hardly any signs of improvement inindustrial and construction activity at ground level. It is possible that stretchedbalance sheets of corporates, high interest rates and poor consumer demand have now becomebinding constraints on businesses. For example, net debt to equity for industrialcompanies of BSE 500 universe is at a 20-year high at around 1.5x. These companies are nowpaying around 60% of their operating income as interest. Such dynamics of weak demand,high debt and elevated interest rate may have squeezed the ability of corporates toexecute projects.

To overcome such situation, monetary easing can certainly help. But central bank'shands are tied because of elevated inflation. In fact, it is also puzzling that despitebroad-based demand slowdown in the economy, high interest rates and decelerating moneysupply, retail inflation has remained elevated and sticky. We think that inflation battlecannot be won by RBI alone. It is the government that needs to do the heavy liftingespecially in view of the fact that steep MSP hikes and large procurement of food grainsover the last six to seven years have contributed to adverse inflation dynamics. Only ifinflation cools down in a sustainable manner can one hope that monetary authorities wouldlook to stimulate economy.

Another challenge would be continuing process of fiscal consolidation in depressedgrowth environment. As mentioned earlier, expenditure has been reined back substantiallyover the last two years. Even fuel subsidies are getting rationalised gradually. Butdeficit is still elevated because tax revenues are highly sluggish amid weak economy.Therefore, growth revival is crucial for successful fiscal consolidation. In that sense,Union Budget 2014-15 will be the real test for new government as it should serve as theindicator of its priorities.

Overall, we think that extreme macroeconomic vulnerability seen last year is behind us.To that extent, economy has stabilised and we would likely see a modest rebound gradually.However, sustained uptrend in economy will require addressing lingering issues ofinflation, fiscal deficit and reviving investment cycle and business confidence throughfaster project approval process and pragmatic policies. The new Government with a clearmajority has generated huge optimism about return of growth.

Capital Markets

Capital markets witnessed a roller coaster ride during FY14, but ended on a high note.The year FY14 started well as commodity prices declined and stability on political frontwas restored. However, fears of QE tapering and rupee depreciation led to a sharpcorrection in markets. As rupee stabilised normalcy was restored, resulting in a rally andmarkets reaching back to levels prior to QE tapering. Last quarter of FY14 saw marketsbreaking new highs owing to increased optimism on the formation of a stable andprogressive government and also stable commodity prices. Recent results gave a clearmandate in favour of NDA which is positive as the country needs to get growth back. Goingahead, we believe that these factors together with reasonable current valuations, marketswill remain well supported.

Emerging Markets

The volatility of Indian equities was also a story of emerging markets. In FY14, MSCIEM declined by ~4%, compared to 17% gain of developed world. Apart from global factors,concern with regards to China also surfaced in the last quarter of FY14. Slowing growthand rising risk of debt defaults in China led to bouts of risk aversion. However, of late,there have been rumours of a possible China stimulus, which has resulted in EM equitiesrallying by ~8% in the last 10 days of FY14. Going ahead, we believe that while Chinarelated concerns will persist, Chinese authorities would not let growth slip because anysharp slowdown could make the process of re-balancing extremely challenging. Hence, asharp EM slowdown should not be among the possibilities, thus resulting in higher riskappetite globally.

Commercial Credit Markets

Indian commercial banks' non-food credit grew around 14% in FY14, similar to previousyear. After a brief spell of easing interest rates in the first half of CY2013, RBI had toagain resort to increasing rates in the middle of the year on the back of elevatedinflation. Higher interest rates coupled with lack of investment demand due to slowingeconomy resulted in subdued commercial credit growth, when seen in the backdrop of 20%+growth witnessed till about three years ago. As a result of sluggish growth, high interestrates, rupee depreciation and deteriorating economy, cash flows of borrowers came undersevere pressure leading to significant worsening of asset quality in banks, especiallypublic sector banks. The number and quantum of references from mid and large corporates toCorporate Debt Restructuring mechanism also reached an all time high during the year. Theworsening asset quality prompted RBI to come out with stricter guidelines for detection ofaccounts showing early signs of sickness and time-bound action for immediate resolution.High NPA ratios also spurred the banks into selling large chunk of bad loans to AssetReconstruction companies during the second half of FY14. We expect the momentum for saleof NPAs to ARCs to continue in FY15 resulting in improvement in banks' reported NPAratios. Credit growth and asset quality of PSU and private banks going forward is likelyto continue to show divergent trends. While PSU banks' slippages will remain high in thenear term, we expect private players to fare well. Gradual improvement in economy coupledwith expected uptick in investment cycle is likely to result into pick up in credit growthin latter half of FY15.

While commercial banks continued to remain dominant source of debt capital in India,NBFC credit also supports credit growth in the country in a large quantum. NBFCs have beengrowing at a higher rate than banks due to a smaller base and due to their ability tostructure transactions to satisfy needs of diverse cross section of clients. While thebanking sector was beset with worsening asset quality in FY14, NBFCs could restrict thedamage in their portfolios due to their ability to respond quickly as well as availabilityof a higher collateral cover. As a result, while their asset quality at the end of FY14was definitely worse than that at the end of FY13, it nonetheless continued to be undercontrol. Non-bank credit availability through the medium of NBFCs will continue to be aneffective channel for meeting funding requirements of corporate as well as retail clientsgoing forward and thus presents a large and growing opportunity for NBFCs like ours.

Debt Capital Markets

Debt market had its fair share of ups and downs in a volatile year whereby both globaland domestic factors necessitated swift action by policy makers, initially with a view todefend currency volatility and later to fight inflationary pressures. RBI and thegovernment had to step in as currency depreciated sharply on the back of US Fed taperingfears and higher current account deficit. The measures bore fruit with the currencystabilising in last quarter around comfortable levels of Rs 60. The rate cycle, which hadearlier seen four rate cuts aggregating 125 bps entering into FY14, was now witness tothree rate hikes aggregating 75 bps from September 2013 to January 2014. RBI has firmlyplaced focus on CPI inflation as the primary metric for its policy and hence yields havebeen subject to an upward bias. The monsoon is a crucial trigger to shaping rate cyclewhich can be in an extended pause mode till clarity emerges on inflationary impact, ifany. As a result, debt markets are likely to maintain cautious mood in first half of FY15before a potential rate cut cycle is incrementally priced in.

The highlight among debt market reforms has been the launch of cash-settled,exchange-traded Interest Rate Futures (IRF) which is a vital cog in fixed income ecosystemglobally. This version of IRF is simplistic with a liquid underlying that addresses mostof the concerns of earlier avatars. Consequently, it has gained market-wide acceptance atlaunch and volumes / open interest are on the rise as more investor categories participatein this derivative product for purposes of trading, hedging and arbitrage. While currentIRF contract is linked to 10Y benchmark as underlying, contracts might be launched acrossother liquid segments of the curve in due course of time. This can also driveparticipation in other products like bond repos and credit default swaps which havecontinued to be in a dormant phase. Introduction of term repos as a liquidity infusionmeasure is another key reform as it helps address spikes in liquidity tightness and cansoon pave the way for a term repo structure.

The currency depreciation in earlier part of FY14 was accompanied by sizeable Fll debtoutflows that aggravated overall situation. However, with return of stability on currencyand macroeconomic fronts, almost two-third of outflows were recouped in last quarter. In abid to avoid short-term investments that can lead to future volatility and to encouragelonger term stable investments, Fll investment in T-Bills has been disallowed whileinvestment limit in commercial papers has been curtailed to USD 2 billion. The effort toliberalise the overall Fll investment process continues with all limits being availableon-tap till 90% of limits are utilised and institution of FPI investor categories toreplace Fll regime. Attractive India onshore valuations coupled with expectations ofgreater stability can revive foreign investment appetite and attract flow momentum asobserved in FY13.

A FULLY DIVERSIFIED FINANCIAL SERVICES GROUP

Edelweiss was founded in November 1995 with an aspiration to become one of the leadingfinancial services groups in India. With the economic liberalisation of the early 90s,Edelweiss saw a huge opportunity in intermediating on capital flows from savings intoinvestments. From initially providing advisory and investment banking services, Edelweisshas grown by consciously and strategically investing in expanding services in existingareas as well as adding a presence in adjacent markets. Our entry strategy in every newbusiness has been to find growing but underserved niches in the market. This has allowedthe Group to address a larger pool of savings. As Edelweiss moved from wholesale toretail, and financial markets to insurance, the Group also expanded access to thefinancial savings pool from 5% to nearly 30%. Edelweiss' belief has been that we must addsignificant value by providing cutting edge products and services by focussing ontechnology, risk, research, analytics, robust processes and high quality people. Thisstrong focus has helped the Group grow from being an Advisory house into a Credit andFinancial Services organisation.

Before the major phase of diversification of businesses until 2008, Edelweiss wasearning about 70 to 75% of its revenue and net profit from financial market-relatedactivities and wholesale segment accounted for almost 100% of its revenue and net profit.However, in order to diversify and enter into retail businesses which presented largescalable opportunities, EFSL embarked upon a diversification phase during the period2008-12. As a result, today financial markets related businesses account for only about20% of the consolidated revenue of EFSL. We are also gradually achieving the objective ofhaving a healthy mix of revenue from wholesale and retail businesses.

From catering to a few hundred wholesale clients in 2008, Edelweiss Group now has anaccount base of over 497,000 clients from retail and wholesale segments across businesses.In addition, our Depository Participants maintain over 262,000 DP accounts.

With the diversification phase getting over in FY12, Edelweiss has focussed onimproving efficiency and productivity and scaling up newer businesses during the period2012-14. As a result of this, despite macro-economic environment in the country turningchallenging in this period, country witnessing two consecutive years of sub-5% GDP growth,Edelweiss has recorded significant growth in the topline, which has moved up from 716,707million in FY12 to 721,840 million in FY13 (31% growth YoY) and to 725,555 million in FY14(17% growth YoY). During the same period, bottomline has moved up from 71,277 million inFY12 to 71,785 million in FY13 (40% growth YoY) and to 72,202 million in FY14 (23% growthYoY).

While diversifying and continually adding newer businesses to its portfolio, EFSL hasalso demonstrated a strong track record of growth over the last several years with its11-year CAGR for Revenue at 65% and PAT at 75% till the end of FY14. The Company'sphenomenal growth has been powered by strategic vision, strong belief and adherence to itscore values and guiding principles, its ability to raise capital and deploy itjudiciously, attract talent and build leadership, and a strong focus on technology,corporate governance and risk management.

We are happy to share that Edelweiss has been voted "India's Best ManagedCompany" in the up to $500 million market cap category by the investors and analystsreaders of Hong Kong based Finance Asia, Asia's leading financial publishing house, in itsannual poll on India's Top Companies - 2014. It is for second consecutive year thatEdelweiss has been ranked in a similar manner in the Finance Asia Poll. This accolade is arecognition of our strategy of growing in a calibrated and cost-efficient manner whileconcentrating on areas like Risk Management, Governance, Leadership Development andCustomer Centricity.

ORGANISATIONAL STRUCTURE

At Edelweiss, we have constantly worked towards building our product lines and managingour growth since inception. As we pursue more business opportunities, and as the Companygrows and becomes more complex, we have to ensure that we remain efficient and effective.This requires constant effort towards organisation building, leadership growth andsharpening our backend systems, processes and technologies. Further, as our client basegets more retail and geographically spread, we must find newer ways of meeting theirexpectations in an innovative, customer-centric and consistent manner. We also must remainon our toes to identify and control newer risks. This makes it imperative to ensure thatour organizational set-up also keeps evolving in line with the changes happening withinEdelweiss and outside to take care of the growing needs.

To meet future challenges, we have organised businesses of Edelweiss around five broadbusiness groups - Credit including Housing and SME Finance, Commodities, FinancialMarkets, Asset Management and Life Insurance. Each of these five business groups is, inturn, organised around Strategic Business Units (SBUs) catering to a specific verticalwithin the business group, based on commonality of business drivers, client segments,resources and backend support required. Finally, each SBU comprises several lines orsublines of businesses (LoBs) to impart greater focus on customer-centricity andperformance evaluation of their specific business.

With the scaling up of our fund-based businesses, our borrowing and consequentlyBalance Sheet size have also grown over the past few years. This also means that the Grouphas to also increasingly manage its liquidity and liabilities as also to ensure properasset liability match. The Balance Sheet Management Unit (BMU) manages these vitalfunctions. The five business groups and BMU are controlled and supported by a core ofEnterprise groups that provide consistent quality and rigour to key process functions.These groups focus on improving efficiency and productivity and enhance our ability todeal with increasing complexity. As a part of organisation build out, we have alsoinvested significantly in our risk management systems, HR processes, people and technologyso that we are able to build a large efficient organisation and manage its complexitieswell.

Our organisational structure is nimble and evolving. While all the SBUs will drivesynergies as well as address common needs, at an overall Edelweiss level there is onenesson key areas such as core value systems, culture, long-term strategy and allocation of keyresources. At the same time, in order to build the SBUs into large independent businesses,some of the enterprise functions are being gradually decentralised so that they resemble,think and function like independent companies. This will align the enterprise functions tospecific business requirements of respective SBUs and improve decision-making process. Wehave achieved significant progress in this direction and continue to work towardsachieving further decentralisation.

Taking another vital step towards strengthening the SBUs, we have created internalBoard of Directors for each of them with independent members, i.e. senior managementpersons not directly involved in managing that SBU. The SBU Boards also meet quarterlywith a structured agenda and entire proceedings are conducted in the same manner as theCompany Board Meetings. This provides an opportunity for independent review of SBUs. Clearbenefits of doing this have been seen in better performance of SBUs. SBU Board members aredrawn from a diverse skill set and are rotated depending on requirements of SBUs.

Diverse businesses of Edelweiss are conducted through an organisational structureconsisting of 48 subsidiaries. These subsidiaries are regulated by various regulators forfinancial services industry such as RBI, NHB, SEBI, FMC and IRDA depending upon thebusiness handled by them. We have a presence in 118 major cities through 216 officesincluding six international offices as on March 31, 2014. Together with a nearly 5,700strong network of Authorised Persons and Sub-brokers, Edelweiss footprint covers nearlyevery major town or city in India. Edelweiss Group employs 4,001 employees, leveraging astrong partnership and ownership culture.

EDELWEISS STRATEGY

Ever since its inception, Edelweiss has successfully followed the strategy ofsynergistic diversification in adjacent spaces while focussing on people, processes,products and structure. This approach to growth and diversification means that we havegrown steadily and consistently. The Group's approach is also characterised by itswillingness to invest in the long term to build long-lasting and sustainable businesses.Edelweiss' diversification has not only demonstrated its capability of entering maturemarket segments and building successful businesses but also helped mitigate volatility andextreme risk.

Our broad strategy of diversification for long-term growth, which has resulted in oursuccess over the years, is founded on the following eight key pillars:

• Strong Governance & Compliance Culture

• Focus on Risk Management

• Strong and Liquid Balance Sheet

• Commitment to People and Leadership Development

• Leveraging Technology for Strategic Advantage

• Quality Customer Centricity

• Research & Analytics-based decision-making

• Culture of Social Responsibility

These pillars constitute key strengths of Edelweiss. They have enabled us to launch newbusinesses, scale them up, gain market share and achieve a leadership position over thepast 18 years. As a result, we have a core leadership team, a broad array of products andservices, a strong foundation of large financial capital, a brand that is well recognised,a set of core values and most of all: clients who want to do business with us repeatedly.At its core, the strategy is governed by the aspiration to become a bridge between saversof capital and users of capital, by channelising savings into investments efficiently.Following this broad strategy, despite environment in recent past having been tough, wehave grown our share in financial services industry in both relative and absolute terms aswell as post perceptible improvement in our financial and business performance.

As a part of the above strategy, during the year under review, we decided to apply toRBI for a banking license. The rationale for this decision arises out of our aspiration tobe present in all forms of financial services in the country. Currently, among ourbusinesses credit is the largest business and aligns well with the banking industry. Whileour lending operations can be sustained easily for some more time through market or debtborrowings and other sources which we have tapped, in the longer run a banking licensedoes give access to low cost deposits by way of savings and current deposits and alsomakes us part of payment system. Further, at present, out of the Indian household savingschannelled through financial intermediaries, nearly 70% flows to the banks and a bankinglicense does help in covering the entire addressable pool of Indian household savings.However, RBI brought the current exercise to a close by granting only two licenses and hassaid that they will frame fresh guidelines for grant of banking licenses which could alsoinclude on-tap license and differentiated licenses. We will examine the new guidelineswhen issued and take an appropriate decision with the approval of our Board in due course.

At the broader level, our strategy and key business tenets going forward are:

• Profitability - taking our Return on Tangible Equity ex-insurance to best inclass levels

• Scalability - achieving scale and critical mass in all our businesses,especially retail businesses

• Sustainability - improving the proportion of sustainable earnings by scaling upstable businesses, further de-risking and eliminating volatility in our performance

• Management - improving upon the excellent management quality that we have andbuild leadership for higher responsibilities in line with future growth

• Governance - strengthening the compliance function and ensuring highestgovernance standards

In the post-global financial crisis era, year 2010-11 had witnessed return of growthand higher levels of activity in markets. As a result, most of the corporates had postedslightly better earnings in FY11 compared to previous year and there was a hope andoptimism that the worst of the impact of global financial crisis was behind us, at leastin India. However, improvement in business climate was shortlived as towards the end ofFY11, environment had again turned challenging on the back of Eurozone sovereign debtcrisis and a weak U.S. recovery coupled with a host of domestic governance issues. As aresult, the next year i.e. FY12 turned out to be significantly worse. At the same time, weat Edelweiss were nearing the completion of our diversification phase which entailedsignificant investment. As this investment, which was crucial to our long-term growth andreducing dependence on volatile capital markets businesses, passed through our Profit& Loss account, our profitability reached a trough in FY12 with Q2FY12 witnessing alow PAT of 7263 million. As a result of these factors, our net profit for FY12 was alsolow at 71,277 million.

However, with investment phase nearing its end and despite no significant improvementin operating conditions, strategy of diversification of businesses started paying outdividend and our financial and business parameters started improving since Q2FY12. Whilewe were focussing on improving our efficiency and productivity FY13 onwards, almost allour newer businesses under Retail Financial Markets and Retail Finance, broke even inFY13. This left only the life insurance business with red ink in its Profit & Lossaccount at the end of FY13. Contribution from the new businesses and efficiency andproductivity improvement resulted in our net profit for FY13 going up to 71,785 million, agrowth of 40% over FY12.

While we had the momentum generated in FY13 with us, we continued to focus on improvingcapital and operating efficiencies in FY14, besides scaling up our newer businesses eventhough the business conditions remained challenging. We therefore continued to postsignificant improvement in all our business and financial parameters in FY14 and, asmentioned earlier, over the last 11 years, our total revenue has grown at a CAGR of 65%and net profit has increased at a CAGR of 75% as at the end of FY14. Thus, our performanceacross market cycles demonstrates our ability to withstand impact of external forces andyet be able to build a robust and agile Company that can exploit growth opportunities andturn them into business whenever they appear.

CONSOLIDATED FINANCIAL HIGHLIGHTS FOR FY14

A summary of our consolidated FY14 financial highlights is as under:

* Total Revenue of 725,555 million (721,840 million for FY13), up 17%

* Profit after Tax of 72,202 million (71,785 million for FY13),up 23%

* Diluted EPS of 72.85 (72.31 for FY13) (FV 71) Dividend

The Board of Directors have recommended a final dividend of 70.15 per equity share (ona face value of 71) for FY14, subject to approval of members of the Company at the ensuingAnnual General Meeting. During the year, the Company had paid interim dividend of 70.55per equity share (on a face value of 71). The total dividend for FY14, therefore, worksout to 70.70 per equity share (FV 71), which is equal to 70% Dividend Rate.

Buy-back of Shares

Soon after the close of FY14, Board of Directors at its meeting held on April 23, 2014have approved the Buy-back of Company's equity shares of 71 each in accordance with theapplicable regulations. The buy-back will be made from open market through Stock Exchangesat a price not exceeding 745 per equity share and for an aggregate amount not exceeding71,350 million. The buy-back from the open market has commenced with effect from May 05,2014. The Buy-back is intended to lead to better capital reallocation and improve ourcapital efficiency.

INCOME HIGHLIGHTS Fund-Based Revenue

Our fund-based businesses earned revenue of 720,625 million for FY14 (717,811 millionfor FY13), a growth of 16%. Out of this, interest income was 717,760 million (715,355million for FY13), up 16%.

Continuing our efforts since FY11, with scale-up of credit book this year, interest onloans continued to be a major revenue stream for us and accounted for over one-third (38%)of our total revenue for FY14.

Agency Fee & Commission

Our agency businesses recorded a fee & commission revenue of 73,556 million for theyear, compared to 73,194 million in FY13, up 11%. This included Broking Income of 71,565million (71,561 million for FY13) and Advisory & Other Fees of 71,991 million (71,632million for FY13). Broking income accounted for around 6% of our total revenue for FY14.

The protracted slowdown in capital market activity levels, which began in third quarterof FY11, continued through Fyl4. Corporate Finance and Advisory services businesswitnessed low levels of activity with most of the corporates holding back capex investmentin view of sluggish economy and uncertain prospects. In addition, secondary market volumescontinued to be highly skewed towards options and lack of retail investor interest alsopersists. Hence, the industry witnessed its revenue pool being static and even lower insome verticals in FY14 compared to previous years. Despite this, we have been able to growour Agency Fee & Commission revenue due to higher advisory fees.

Premium from Life Insurance Business

Our life insurance business was launched in second quarter of FY12 and it recorded anet premium of 71,062 million for the year (7525 million for FY13 and 7107 million forFY12) reflecting the planned scale-up of this business. Its gross premium for FY14 was71,109 million.

Insurance industry continues to fare below the potential. We, however, being a newentrant, with no legacy issues, expect the insurance business scale-up to continue andthis revenue stream to grow significantly in the years to come.

Net Revenue

With Credit business now being our largest business among the five main businesses, theconcept of Net Revenue (net of interest cost

Futures & Options Quote
Future Data Not present
Key Information

Key Executives:

Rashesh Shah , Chairman & Managing Director

Venkat Ramaswamy , Whole-time Director

Kunnasagaran Chinniah , Director

Narendra Jhaveri , Director


Company Head Office / Quarters:

Edelweiss House,
Off C S T Road Kalina,
Mumbai,
Maharashtra-400098
Phone : Maharashtra-91-22-22864400/4820 / Maharashtra-
Fax : Maharashtra-91-22-22864278 / Maharashtra-
E-mail : efsl.shareholders@edelweissfin.com
Web : http://www.edelweissfin.com

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