Edelweiss Capital has declared its third quarter results. The company's Q3 net profit was up at Rs 29.4 crore versus Rs 26.3 crore, quarter-on-quarter, QoQ.
Edelweiss Capital has declared its third quarter results. The company's Q3 net profit was up 11.78% at Rs 29.4 crore versus Rs 26.3 crore, quarter-on-quarter, QoQ.
Its total income was up 22.31% at Rs 455 crore versus Rs 372 crore, QoQ.
Edelweiss has achieved significant topline growth in the third quarter which reflects the business diversification that Edelweiss has been striving for, though the bottomline growth continues to be challenged due to a combination of external and internal factors.
These include tough environment leading to marked slowdown in activity levels, continuing investments in incubating new businesses - life insurance and retail businesses and depreciation on new office property. Collective impact of these at profit after tax level is about Rs 12 cr in the third quarter.
Speaking on the occasion, Rashesh Shah, Chairman and CEO, Edelweiss Financial Services Limited said: “Third quarter of this year has been a tough quarter where activity levels got impacted due to volatility in markets, high inflation & interest rates and slowdown in industrial output. Rupee depreciation and overall weak global sentiments on the back of continuing Eurozone financial crisis added to the challenging operating conditions.
Our performance this quarter demonstrated resilience of our diversified business model as we achieved significant topline growth and a reasonable bottomline growth QoQ even in these tough market conditions. Our costs have gone up in the third quarter as we scaled up our insurance business. Our profitability has in fact improved this quarter if the impact of insurance scale up costs is factored in. We remain focused on our core strategy to build a diverse set of businesses that will help moderate the impact of volatile market conditions and achieve long term growth.
However, our investment in building new businesses and the challenging environment have impacted the bottomline in the short term. We expect the headwinds to moderate in the next two or three quarters with RBI taking a pause in rate hikes before we see growth returning to the markets.”
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