Edelweiss has come out with its fourth quarter (Jan-March’ 18) earnings estimates for the Banking & Financial Services sector. The brokerage house expects Equitas Holdings to report net profit at Rs. 26.2 crore up 280% year-on-year (up 187.3% quarter-on-quarter).
Net Interest Income (NII + OI) is expected to increase by 17.5 percent Y-o-Y (up 3.6 percent Q-o-Q) to Rs. 282.9 crore, according to Edelweiss.
Edelweiss’ earnings estimates for Equitas Holdings
Overall AUM is expected to see growth momentum improving, with good traction in SME/LAP/home loans along with buildup in MFI portfolio (run-down is done away with). Operating leverage benefit should start kicking in. Asset quality should also witness improving trend - Given improving collection efficiency, PaR should be contained, with provisioning at lower levels (upfronting of provisions already happened in Q3FY18).
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