Edelweiss Financial Services gains on strong Q2 result

Edelweiss Financial Services rose 4.95% to Rs 47.75 at 13:45 IST on BSE after the company's consolidated net profit jumped 71.96% to Rs 79.24 crore on 56.62% rise in total income to Rs 909.51 crore in Q2 September 2014 over Q2 September 2013.

The company announced Q2 results during market hours today, 17 October 2014.

Meanwhile, the BSE Sensex was up 89.73 points or 0.35% at 26,089.13.

On BSE, so far 5.65 lakh shares were traded in the counter, compared with an average volume of 2.25 lakh shares in the past one quarter.

The stock hit a high of Rs 48.90 and a low of Rs 45.70 so far during the day. The stock hit a 52-week high of Rs 66.90 on 25 June 2014. The stock hit a 52-week low of Rs 24.90 on 26 November 2013.

The stock had underperformed the market over the past one month till 16 October 2014, falling 8.63% compared with 1.86% fall in the Sensex. The scrip had also underperformed the market in past one quarter, declining 26.02% as against Sensex's 1.76% rise.

The mid-cap company has an equity capital of Rs 77.76 crore. Face value per share is Re 1.

The company's fund based income rose 59% to Rs 738 crore in Q2 September 2014 over Q2 September 2013. This income stream includes income from credit including housing finance business, commodities business and balance sheet management unit operations.

The company's fee & commission income rose 45% to Rs 127 crore in Q2 September 2014 over Q2 September 2013. This income stream includes income from broking, corporate finance advisory, asset management, wealth advisory businesses and fees from credit business. Broking income constitutes about 6.9% of the total revenue for the quarter.

The company's gross premium income from life insurance business rose 77% to Rs 42 crore in Q2 September 2014 over Q2 September 2013. The diversified revenue mix has successfully helped company in achieving improvement in its performance on a sustained basis despite volatile environment.

The total networth of the group now stands at Rs 3261 crore with tangible equity ex-insurance and ex-minority at Rs 2375 crore as at 30 September 2014. The aggregate borrowings at the end of this quarter are marginally higher at Rs 15017 crore compared Rs 14942 crore as at the end of the previous quarter. Excluding back to back borrowings, our net gearing is 3.7x compared to 3.8x at the end of the previous quarter.

Edelweiss is a diversified financial services Group. Edelweiss offers a large range of products and services spanning across asset classes and consumer segments. Its businesses are broadly divided into Credit including Retail Finance and Debt Capital Markets, Commodities, Financial Markets, Asset Management and Life Insurance.

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