ICICI Direct: Edelweiss Financial’s Continuous Divestment in Key Subsidiaries Continues

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.Edelweiss Financial Services Ltd. reported a weak set of Q1 FY21 numbers wherein the company reported a consolidated loss of Rs 264 crore mainly due to impairment of Rs 145 crore and muted performance in credit and insurance business.In credit business, the wholesale lending book de-grew 18% QoQ to Rs 10953 crore. Advances de-growth led to dip in net revenue by 92% QoQ to Rs 95 crore.Muted topline and higher provisions led to a loss worth Rs 156 crore.In retail credit (approximately 55% of overall loan book), Edelweiss Housing Finance Ltd. growth was stable with loan book at Rs 4490 crore, up 3.8% QoQ.Edelweiss Retail Finance Ltd. loan growth came at Rs 1312 crore, down 5% QoQ.Amid Covid-19 Asset Reconstruction Company Ltd. business reported healthy asset under management (AUM) growth of 53.5% QoQ at Rs 66300 crore and recoveries at Rs 470 crore.For Asset management company business, AUM was at Rs 29400 crore with gross revenue at Rs 25 crore (yield at 0.08%).Higher operating costs marred Edelweiss Asset Management Ltd.’s profit after tax growth and led it to come in at Rs 2 crore.The company plans to grow its equity AUM to approximately Rs 10000 crore within the next 12-18 months..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Edelweiss Financial’s Continuous Divestment in Key Subsidiaries Continues

Edelweiss reported a consolidated loss of Rs 264 crore due to impairment of Rs 145 crore and muted performance in key businesses.

Choose a plan