Edelweiss Group, a Mumbai-based investment banking and brokerage firm, reported a decline in its net profit at Rs 43.3 crore for quarter-ended March 31, 2011 compared to Rs 52.3 crore for the same period last year. Its revenue increased at Rs 380 crore as against Rs 259 crore on a year-on-year basis.
Addressing a press conference, Rashesh Shah, chairman and CEO said the earnings drag of about Rs 50 crore on profit after tax (PAT) is on the back of investments made in new businesses (retail and life insurance) and setting up the infrastructure of new office."The market downturn and lack of capital market activity has affected fourth quarter earnings of investment banks and brokerage firm," he added.
The company's board has announced a final dividend of 35 paise per share of Rs 1 each for the fiscal year 2011.
On his future plans, Shah said: "This is a good time to invest because for the past three years the company has been in a consolidating phase. We have accomplished substantial growth in our top line in FY-2011; nonetheless the landscape in the second half of the year has been difficult to sustain growth. We expect the currents to continue in first half of FY12 on concerns of high inflation, crude prices and interest rates. "
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