Edelweiss Q2 net profit up 58%

The net profit of Mumbai-based Edelweiss Financial Services rose 58.2 per cent year-on-year to Rs 41.6 crore in the second quarter of the current financial year. The September quarter profit of the firm rose on back of strong interest and treasury income.

Total income of Edelweiss was up 40 per cent to Rs 509 crore from Rs 365 crore during the same period last year. Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 50 percent y-o-y to Rs 334 crore in the three months period ended September. Ebitda margin jumped 450 basis points y-o-y to 65.6 per cent in the quarter. Interest and treasury income from capital-based businesses was Rs 418 crore for the quarter, a significant growth of 50 percent over a year-ago period, but a decline of seven per cent compared to previous quarter. This income stream includes income from credit, commodities and treasury businesses.

Capital based income accounts for 83 per cent of the total income for Q2FY13, which was higher compared to 77 per cent in the corresponding quarter of last financial year due to scale up of credit business. Fee and commission income from agency businesses was Rs 80 crore for the quarter, down five percent 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 per cent of the total income for the second quarter of current financial year, a significant fall compared to 23 per cent in the corresponding quarter of last financial year.

Edelweiss Life Insurance business recorded premium income of Rs 6 crore for the quarter as against Rs 3 crore in the previous quarter.