Edelweiss Financial Services Ltd's Q1FY19 consolidated net profit rises 30.51% yoy to Rs264.40cr : In-line with Estimates

The company’s consolidated total income stood at Rs2,435.47cr, up 17.71% yoy.

Aug 08, 2018 07:08 IST India Infoline Research Team

Edelweiss Financial Services Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 2,435 17.7
Net Revenue - credit business 826 41.2
NIM (%) 7.8 0
GNPA (%) 1.75 4
Net Profit (adjusted) 264 30.5
***GNPA and NIM change in bps

Edelweiss Financial Services Ltd’s revenue grew by 17.7% yoy to Rs2,435cr. EBITDA came in at Rs1,514cr, up 14.7% yoy. EBITDA margin contracted by 164bps yoy to 62.15%. Company’s adjusted Net profit stood at Rs264cr, up 30.5% yoy. Revenue and Adjusted Net profit came in-line with our estimate of Rs2,454cr and Rs275cr respectively.

• NIM for its credit business for the quarter stood at 7.8% (same as 7.8% yoy).
• Average cost of borrowing stood at 9.6% vs. 10.1% yoy. 
• At the end of Q1FY19, book size of Retail Credit was Rs18,465cr (Rs10,245cr at the end of Q1FY18), up 80% yoy.
• The Corporate Credit book was Rs20,201cr (Rs14,491cr at the end of Q1FY18), up 39% yoy.
• The asset quality of the overall credit book continued to remain under control with Gross NPAs at 1.75% and Net NPAs at 0.74%. Gross NPAs and Net NPAs stood at 1.71% and 0.61% yoy respectively. 
• The Assets under Advisory (AuA) of the Global Wealth Management business grew at 46% to ~Rs96,300cr at the end of Q1FY19 compared to ~Rs65,900cr at the end of Q1FY18.
• The total AuMs of Asset Management business grew to ~Rs31,500cr at the end of Q1FY19 compared to ~Rs 19,700cr at the end of Q1FY18, a growth of 60% yoy.
• Its revenue from Agency business (Rs356cr), Capital business (Rs1,986cr) and Insurance activities (Rs154cr) grew by 12.2%, 20.8% and 33.2% yoy respectively during the quarter.
• Employee benefit expenses stood at 15.9% of revenue vs. 15.6% yoy, impacting the EBITDA margin.
• EBIT margins of Agency business stood at 32.6% vs. 28.1% yoy. However, for capital business, EBIT margins stood at 19.5% of revenue vs. 20.9% yoy.
• Losses of insurance business widens to Rs80cr vs. Rs43cr yoy.
• Finance cost grew by 20.7% yoy to Rs1,110cr.

Technical View:

Edelweiss Financial Services Ltd ended at Rs. 329.70, up by 8.15 points or 2.53% from its previous closing of Rs. 321.55 on the BSE.
The scrip opened at Rs. 323 and touched a high and low of Rs. 329.70 and Rs. 319.25 respectively. A total of 3,76,455 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.

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