Edelweiss Financial Services Q1FY23 Results- PAT fall 37.8% to ₹26.3 Cr QOQ, GNPA improved to 2.5%

GNPA at 2.76%; improved YoY from 3.96% Collection efficiency at 93% for Jun 22 vs 91% for Jun 21 Strong wholesale inflows of ~INR 1,200 Cr in the quarter, momentum expected to continue Total recoveries of INR 1,750 Cr in the quarter of which 18% are from retail portfolio Deployed INR 475 Cr in the quarter Share of Retail Assets doubled YoY to about 13% of capital employed as on Jun 30, 2022

Edelweiss Financial Services
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Edelweiss Group is an investment and financial services company based in Mumbai, India. It is co-founded by Rashesh Shah and Venkat Ramaswamy.

Edelweiss Financial Services has posted its Q1FY23 financial results today, the details are as below :

(I) Unaudited Consolidated Financial Results for Quarter Ended (QOQ comparison):

The company has reported, a consolidated Total Income of ₹1,293.66 crore in the quarter ended on June 30, 2022 as against ₹1,914.75 crore in the last quarter ended on Mar 31, 2022, decreased by 32.44%.

Edelweiss Q1FY23 result shows a consolidated Net Profit of ₹26.38 crore in the quarter ended on March 31, 2022 as against ₹42.45 crore in the previous quarter ended on June 30, 2022. The PAT surges down by 37.86%.

The status of the EPS of the company stood at ₹0.29 as on March 31, 2022 compared to the previous quarter ended on June, 2022 which was ₹0.47, down by 38.30%.

₹*June 30, 2022 (Q1FY23)Mar 31, 2022 (Q4FY22)
Total Income1,293.661,914.75
Total Expenses1258.591845.84
PBT /(Loss)55.5985.59
Total Tax /(credit)20.1940.21
PAT /(Loss) [to the owners]26.3842.45
*figures are in Crores

(II) Unaudited Consolidated Financial Results for Quarter Ended (YoY comparison):

The company has reported, a consolidated Total Income of ₹1,293.66 crore in the financial year ended on June 30, 2022 as against ₹1,649.25 crore for the same quarter ended on last year June 30, 2021 that decreased by 21.56%.

The company has posted a consolidated Net Profit of ₹26.38 crore in the financial year ended on June 30, 2022 as against ₹18.09 crore for the same quarter ended on last year June 30, 2021. The PAT surges up by 45.83%.

The status of the EPS of Edelweiss stood at ₹0.29 as on June 30, 2022 compared to the quarter ended on last year June 30, 2021 which was ₹0.20, up by 45.00%.

₹*June 30, 2022 (Q1FY23)June 30, 2021 (Q1FY22)
Total Income1,293.661,649.25
Total Expenses1258.591696.35
PBT /(Loss)55.59(25.91)
Total Tax /(credit)20.19(51.20)
PAT /(Loss) [to the owners]26.3818.09
*figures are in Crores

Edelweiss Financial Services q1 fy23 results

(III) Key Highlights about the Performance :

Improved asset quality and performance of Credit businesses
• GNPA improved to 2.5% from 3.8% YoY, NNPA improved to 1.8% from 3.3% YoY
• Healthy profitability at INR 35 Cr for the quarter
• Credit assets remain conservatively provided for, higher than IRAC norms

edelweiss asset quality – Edelweiss Q1FY23 results – Market Times

Growth in Customer Franchise
• Customer reach continues to expand to 5.5 million, growing about 30% YoY and nearly doubling over last two years. This has also aided a around 20% YoY growth in customer assets to INR 3.6 trillion – demonstrating the continued trust reposed in us by our customers.

Credit Business

  • Credit businesses reported a PAT of INR 35 Cr
  • Focus continues to remain on asset-light retail credit model through partnerships with Banks.
  • Forged partnership with IDFC First Bank for co-lending to MSME sector, ongoing CLM disbursals with Standard Chartered Bank and Central Bank of India
  • Securitization of ~INR 400 Cr done with Godrej Housing Finance and DBS Bank
  • Asset Quality continues to improve – GNPA at 2.5%, NNPA at 1.8%, YoY improvement from 3.8% and 3.3% respectively
  • Strong wholesale recoveries of ~INR 1,200 Cr in the quarter ended Jun 22, momentum expected to continue
  • Retail collection efficiency is healthy at 98% in Housing Finance, 93% in NBFC

Asset Management

  • Total recoveries of INR 1,750 Cr in the quarter of which 18% are from retail portfolio
  • Deployed INR 475 Cr in the quarter
  • Share of Retail Assets doubled YoY to about 13% of capital employed as on Jun 30, 2022.
  1. Mutual Fund:
  • AUM grew 42% YoY to INR 88,000 Cr; net inflows of INR 5,930 Cr in the quarter
  • Equity AUM grew around 40% YoY to INR 18,800 Cr with net equity inflows of INR 1,100 Cr in the quarter
  • Continued leadership in Debt passives with AUM at INR 65,200 Cr
  • Retail folios grew by 45% YoY to over 1 million
  • Retained our rank of 13th with AUM market share improving 20 bps QOQ to 2.36%

Wealth Management (EWM)

  • AuA (?) grew 17% YoY with net new money of ~INR 4,600 Cr for the quarter
  • Strong 106% YoY growth in distribution income, revenue growth of 21% YoY
  • Addition of ~82,000 Affluent clients during the quarter, YoY growth of 3.4x
  • Customer count increased by 27% YoY to over 9.2 lakh customers

Insurance

  1. Life Insurance:
  • Gross premium grew at 12% YoY to INR 240 Cr; Dominant share of Traditional Par and Non-Par at ~82%
  • Individual APE for the year grew at a 5-year CAGR of 23% against industry growth at 10%
  • Launched a new product “Guaranteed Savings Star” the quarter
  • Advisor base grew 12% YoY to ~65,100

2. General Insurance :

  • Achieved GDPI growth of 82% YoY against industry growth of 23%
  • Consistent Growth across our choice of business segments exceeds industry benchmarks; Health (retail) and Motor grew by 126% and 95% YoY in the quarter against industry growth of 14% and 27% respectively
  • Issued ~80,000 policies in the quarter; ~77% growth YoY
  • Launched Switch 2.0; Industry first, telematics driven ‘usage-based’ product
  • Expansion of partner base in the financial services by partnering with Avanse Financial Services, Orange Retail Finance and ART Housing Finance.
edelweiss business 1 – Edelweiss Q1FY23 results – Market Times

edelweiss business 2- Edelweiss Q1FY23 Results

The stocks of Edelweiss Financial Services Ltd (PDF) last hit in BSE,

  • Intraday High of ₹ 60.70
  • Intraday low of ₹ 57.45
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