The net profit of Mumbai based Edelweiss Financial Services rose 58.2% year-on-year to Rs 41.6 crore in the second quarter of current financial year. The September quarter profit of the firm rose on the back of strong interest & treasury income.
Total income of Edelweiss rose by 40% to Rs 509 crore from Rs 365 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 50% YoY to Rs 334 crore in the three months period ended September 2012. EBITDA margin jumped 450 basis points YoY to 65.6% in the quarter.
Interest and treasury income from capital based businesses was Rs 418 crore for the quarter, a significant growth of 50% over a year ago period but a decline of 7% compared to previous quarter. This income stream includes income from credit, commodities and treasury businesses.
Capital based income accounts for 83% of the total income for Q2FY13, which was higher compared to 77% in the corresponding quarter of last fiscal due to scale up of credit business. Fee and commission income from agency businesses was Rs 80 crore for the quarter, down 5% compared to a year ago period. The environment remained challenging for agency businesses overall in the past four quarters though the activity levels improved this quarter marginally compared to the previous quarter.
Agency fee & commission income includes income from broking, investment banking, asset management and wealth advisory businesses. Agency based income accounts for 17% of the total income for the second quarter of current financial year, a significant fall compared to 23% in the corresponding quarter of last fiscal. Edelweiss Life Insurance business recorded premium income of Rs 6 crore for the quarter as against Rs 3 crore in the previous quarter.
