Edelweiss Finance PAT up 40%

Edelweiss Financial Services recorded a net profit of Rs 178 crore, registering a growth of 40% for the financial year ending March 2013. During the same period, the revenue of the company grew by 31.2% to Rs 2168 crore. Excluding the life insurance business, the net profit figures increases to Rs 243 crore, from Rs 146 crore.

“The rise in the net profit of the company was due to improved efficiency, investments into technology and automation and enhanced profitability in our businesses,” said Rashesh Shah, Chairman and CEO of the company.

The financial services firm has presence across various business segments. The order book of its credit business of the group, which includes retail and corporate business grew by 37% to Rs 6752 crore. Business in the capital markets and the asset management industry continues to be tough, the firm said due to lower activity levels resulting in shrinking income for the industry.

The fee income and commission for the firm was flat at Rs 319 crore, down from Rs 321 crore for the previous fiscal. “The good news is that the fee income and commission numbers have not fallen significantly. This is the only area where the growth has been flat because of its link with the capital market activities. We hope to see some improvement in it as it was last year and still continues to still be low,” said Shah. This revenue stream includes income from broking, investment banking, asset management and wealth advisory businesses.

The stock of the company ended the day at Rs 31.50 per share, up 3.62%.