Edelweiss Financial Services' consolidated net profit slumped 92.6% to Rs 16.71 crore in Q3 December 2019 as compared to Rs 226.11 crore in Q3 December 2018.
The stock slumped 9.73% to Rs 79.80. The stock declined 11.48% to hit the day's low at Rs 78.25, its lowest intraday level since 18 November 2019.
Total income fell 8.5% to Rs 2649.56 crore in Q3 December 2019 from Rs 2897.14 crore in Q3 December 2018.
Profit before tax (PBT) stood at Rs 51.5 crore for the quarter ended on 31 December 2019 as against Rs 458 crore in the year-ago period, down 88.8% year-on-year (YoY). In the December quarter, provisions & write offs surged 92.8% to Rs 220.48 crore compared to the same period last year.
Consolidated debt-to-equity ratio improved further to 2.9 times in Q3 FY20 as compared to 4.20 times in Q3FY19.
Rashesh Shah, chairman and CEO, Edelweiss Financial Services said: "The weak economic climate resulted in elevated credit costs which, along with the cost of managing liquidity, resulted in muted earnings."
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The Edelweiss Group is a diversified financial services companies, providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions and individuals. Its businesses are broadly divided into Edelweiss Global Investment Advisors (wealth management, capital markets, asset management and asset reconstruction), Credit (retail credit comprises of retail mortgage, SME and business loans, ESOP and margin financing, agriculture and rural finance and corporate credit comprises of structured collateralized credit to corporates and wholesale mortgages) and Insurance (life and general insurance).
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