Edelweiss Capital on Monday posted a 20 per cent drop in fourth quarter profit due to challenging environment and investment in new businesses.
The Mumbai-based firm reported a net profit after minority interest at Rs 43.26 crore compared with Rs 52.26 crore in the year-ago period. Total income for the quarter rose 32 per cent to Rs 386.26 crore.
“We expect the headwinds to persist in the first half of FY12 as concerns remain at elevated levels due to high inflation, crude prices and interest rates,” said Rashesh Shah, chairman and CEO, Edelweiss Capital.
Edelweiss Group was being restructured into two main clusters — wholesale and retail — each comprising businesses like capital markets, asset management, credit and advisory services, the company said. In addition, life insurance business would complete the retail cluster, it added.
The board has recommended to change the company’s name from Edelweiss Capital to Edelweiss Financial Services.