Edelweiss Fin Services cons. PAT halves to Rs132cr in Q1FY20; Kora Management to invest in Group

Edelweiss Group, today announced that US-based Kora Management will be investing up to $125mn (Rs875cr) in the Group.

Aug 14, 2019 07:08 IST India Infoline News Service

Edelweiss Financial Services reported its results for Q1FY20 on Wednesday, August 14, during market hours.

The company also made an announcement regarding US-based Kora Management's plan to invest around Rs875cr in the group.

For the quarter ended Jun'19, the co. posted total revenue of Rs2,546cr (vs. 2,481 Cr for Q1FY19).

Its ex-Insurance PAT stood at Rs182cr (Rs311cr for Q1FY19)

Consolidated PAT stood at Rs132cr (Rs264cr for Q1FY19), a decline of 50% yoy.

Debt Equity reduced further to 3.7x (4.9x for Q1FY19)

As a conservative policy, the co. has front-loaded credit costs this quarter.

Further, Edelweiss Group, today announced that US-based Kora Management will be investing up to $125mn (Rs875cr) in the Group.

Kora Management, an investment firm focused on the financial and technology sectors across emerging markets, and an existing long-term investor in Edelweiss, has committed to invest $75mn in the advisory business, Edelweiss Global Investment Advisors (EGIA) subject to structuring-related milestones.

Speaking on the results, Mr. Rashesh Shah, Chairman and CEO, Edelweiss Financial Services Limited said: ‘’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. While we expect H1FY20 to be muted, we are hoping that H2FY20 will be better with signs of an easing liquidity environment with steps taken by the RBI 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 added (regarding the Kora Management investment announcement), "Kora Management is directly aligned with the strategic goals of the business, and we are very happy to strengthen our already long association. 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."

Edelweiss Financial Services Ltd is currently trading at Rs143.85 up by Rs1.45 or 1.02% from its previous closing of Rs142.40 on the BSE

Related Story