Edelweiss Financial posts Q1 net loss at Rs 264 cr

Edelweiss Financial Services reported consolidated net loss of Rs 263.67 crore in Q1 June 2020 as against net profit of Rs 134.49 crore in Q1 June 2019.

Total income slumped 25.7% to Rs 1,919.68 crore in Q1 June 2020 over Q1 June 2019. Pre-tax loss stood at Rs 242.62 crore in Q1 June 2020 compared with pre-tax profit of Rs 203.13 crore in Q1 June 2019. Current tax expense for the quarter tumbled 60.7% to Rs 50.41 crore as against Rs 128.17 crore in Q1 June 2019. The Q1 earnings were announced after trading hours yesterday, 27 August 2020.

The group's net worth stood at Rs 8,320 crore. Customer assets stood at Rs 2,23,000 crore during Q1 FY21 as against Rs 2,07,700 crore in Q4 FY20. Debt Equity Ratio (ex-treasury assets) reduced to 3.2x in Q1 June 2020 compared with 3.5x in Q4 FY20. Borrowings were at Rs 30,394 crore, recording a reduction of 40% over Q2 FY19 levels. The company's liquidity stood at Rs 5,700 crore as on 12 August 2020.

Edelweiss Financial Services said that its board has approved sale of 51% stake in its wealth management business to Pacific Alliance Group (PAG). The deal will be completed at a post-money valuation of Rs 4,400 crore. The transaction is expected to close in the next 4 to 6 months, subject to regulatory approvals, Edelweiss Financial Services said in an exchange filing. Edelweiss Wealth Management will be demerged and listed thereafter in due course.

Meanwhile, Edel Land, a wholly-owned subsidiary of the company has acquired 100% equity of Everest Securities & Finance Everest (incorporated on 17 April 2010) for a cash consideration of Rs 97.13 lakh for furtherance of its business activities. Everest is engaged in the business of trading and investment activities.

Edelweiss Financial Services is engaged in providing investment banking and advisory services, and holding activities/investments. The company's segments include agency business, capital-based business and life insurance.

Shares of Edelweiss Financial Services rose 0.30% to Rs 84.10 on BSE. The stock traded in the range of Rs 84.05 to Rs 86.50 in intraday.

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