Edelweiss Financial Stock Drops The Most In A Month Despite Reporting 40% Rise In Profit
Edelweiss Financial Services Ltd. on Wednesday reported 39.65 percent year-on-year increase in net profit to Rs 170.03 crore for the January-March quarter. The company’s share, however, fell as much as 4.19 percent, the most in a month on profit-booking, after it hit a record high on Tuesday.
Income from operations grew 27 percent over last year’s corresponding quarter to Rs 1,929.3 crore, mainly led by a strong growth in its fee and commission vertical.
Revenue from fee and commission business more than doubled to Rs 481.2 crore, compared to Rs 205 crore a year ago.
Revenue from its largest vertical—fund-based activities—grew at a slower 7.6 percent to Rs 1,215.4 crore, while premium from life insurance business saw an increase of 34.7 percent to Rs 300.4 crore.
The company’s stock has surged over the past one month amid rising investor interest, driven by the buzz surrounding deals brewing in the financial services space and higher inflows in Indian equities.
The company has also got the insurance regulator’s nod to set up its general insurance business. The latest ordinance passed by the government is also expected to provide a boost to asset reconstruction companies. Edelweiss is currently the country’s largest bad loan buyer in terms of assets under management.