Edelweiss Financial Services Ltd's Q2FY19 consolidated net profit rises 47.05% yoy to Rs272.27cr: Beats Estimates

The company’s consolidated total income in the period stood at Rs2,650.03cr, up 31.37% yoy and 8.81% qoq.

Oct 26, 2018 08:10 IST India Infoline Research Team

Edelweiss Financial Services Ltd Q2FY19

Consolidated Results Q2FY19: (in Rs cr)

Q2FY19 YoY (%)
Revenue 2,650 31.4
Interest income 1,713 46.4
Finance cost 1,179 24.1
GNPA (%) 1.78 4
NNPA (%) 0.79 13
Net Profit (adjusted) 272 47.0
***GNPA and NNPA change in bps

Edelweiss Financial Services Ltd’s revenue grew by 31.4% yoy and 8.8% qoq to Rs2,650cr. EBITDA came in at Rs1,646cr, up 29.1% yoy and 8.7% qoq. EBITDA margin contracted by 111bps yoy and 5bps qoq to 62.1%. Company’s adjusted Net profit stood at Rs272cr, up 47% yoy and 3% qoq. Revenue and Adjusted Net profit came above our estimate of Rs2,490cr and Rs235cr respectively.

• At the end of Q2FY19, book size of retail credit was Rs20,622cr (Rs11,800cr at the end of Q2FY18), up 75%yoy.
• Corporate credit book was Rs21,100cr (Rs15,367cr at the end of Q2FY18), up 37%yoy.
• Total credit book, including distressed credit, stands at Rs49,012cr at the end of Q2FY19, up 51%yoy.
• The asset quality of the overall credit book continued to remain under control with GNPA at 1.78% vs 1.74% yoy and NNPA at 0.79% vs 0.66% yoy.
• Distressed credit business has a capital of Rs7,290cr and an AUM of Rs47,500cr.
• The AUA (asset under advise) of the Global Wealth Management business grew at 28% to Rs98,000cr at the end of Q2FY19 compared to Rs76,300cr at the end of Q2FY18.
• Its revenue capital business (Rs2,112cr) and insurance activities (Rs206cr) grew 37.9% and 29.8% yoy, respectively, during the quarter. However, revenue of agency business almost remained flat at Rs341c vs Rs339cr yoy.
• Employee benefit expenses stood at 14.7% of revenue vs 16.2% yoy
• EBIT margins of agency business stood at 32.8% vs 32.6% yoy. Capital business EBIT margins stood at 20.6% of revenue vs 16% yoy.
• Losses of insurance business widened to Rs87cr vs Rs38cr yoy.
• Finance cost grew 24.1% yoy to Rs1,179cr.

Technical View:

Edelweiss Financial Services Ltd is currently trading at Rs140, up by 6.65 points or 4.99% from its previous closing of Rs133.35 on the BSE.
The scrip opened at Rs128 and has touched a high and low of Rs140 and Rs128, respectively. So far, 53,22,766 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200-DMA.

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