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Edelweiss Financial Q4 FY13 net profit zooms 32% to Rs510mn

India Infoline News Service | Mumbai |

The consolidated net profit jumped 40% to Rs. 1.78 billion for FY13 from Rs. 1.28 billion in FY12. Total revenue went up 31% at Rs. 21.84 billion in 2012-13 against Rs. 16.71 billion in the previous financial year

Mumbai-based Edelweiss Financial Services on Wednesday said that its consolidated net profit zoomed 32% to Rs. 510 million for the fourth quarter ended 31 March 2013 against Rs. 387.6 million in the same quarter a year ago.

The total revenue for reported quarter grew by 25% at Rs. 5.95 billion compared to Rs. 4.69 billion in the year-ago period.

The consolidated net profit jumped 40% to Rs. 1.78 billion for FY13 from Rs. 1.28 billion in FY12. Total revenue went up 31% at Rs. 21.84 billion in 2012-13 against Rs. 16.71 billion in the previous financial year.

“Fourth quarter witnessed easing inflation, robust FII (foreign institutional investors) inflows, softer commodities prices and a rate cut by RBI (Reserve Bank of India) improving the operating conditions.

“The Union Budget acknowledging the challenges that India faces on the current and fiscal deficit fronts and without being populist also improved the outlook,” Chairman and CEO Rashesh Shah said. However, this quarter and early part of FY14 also saw signs of political instability raising questions on the ability of the government to continue policy action, he said.

Managing current account and fiscal deficit, continuation of reforms and revival of capex investment would determine the onset of sustainable growth, he said.

“Our long-term strategy to diversify across businesses, asset classes and client segments is bearing fruits as demonstrated by constant improvement in our financial and business indicators in each of the previous six quarters. While our retail finance and retail capital markets business have broken even, the burn in insurance business is as per the plan. Our return on tangible equity excluding the impact of insurance business during the fourth quarter is already inching up to 14 per cent and the cost to income ratio is also on a declining trend,” he said.

While the business environment improves, the company will continue to focus on improving efficiency and productivity, building scale in retail businesses and inculcating a culture of customer centricity during FY14, he added.
 

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