Edelweiss Financial Services today reported a consolidated net profit of Rs 46 crore in the third quarter, a 56% increase over the year ago period when it netted Rs 29-crore profit, driven by a huge increase in fees from its credit business during the period.
Its subsidiary Edelweiss Captial posted net profit at Rs 29.4 crore, up 12% from Rs 26.3 a year ago. Total income grew 22.3% to Rs 455 crore from Rs 372 crore.
Edelweiss Financial Services Chairman and Chief Executive Rashesh Shah termed the numbers "good" and attributed the same to business diversification strategy and growth in fee income that its credit business achieved.
"Our performance shows the resilience of our diversified business model as we achieved significant topline growth and a reasonable bottomline growth during the quarter even in these tough market conditions. However, the bottomline growth still continues to be challenged due to a combination of external and internal factors," Shah told PTI.
The company remains focused on its core strategy to build a diverse set of businesses that will help moderate the impact of volatile market conditions and achieve long-term growth, he said.
Had it not been for the Rs 14-15 crore loss incurred by insurance arm, he said, the total profit in the quarter ended December 31 would have been over Rs 61 crore.
The Group saw total revenue rising 19% to Rs 540 crore from Rs 454 crore a year ago, taking the Group networth to Rs 3,004 crore. The insurance income rose to Rs 10.38 crore from Rs 2.03 crore a year ago, the company said.
Credit disbursal touched Rs 1,400 crore in the quarter from Rs 1,200 crore in Q2, Shah said, adding the compay is disbursing an average of Rs 60-70 crore every month.