Edelweiss Financial Services’s consolidated net profit dipped by 4 per cent to Rs 226 crore for third quarter ended December 2018 (Q3Fy19) as against Rs 235 crore in the same quarter of FY18. Rashesh Shah, chairman and chief executive officer, Edelweiss Financial Services, said the fall in net profit reflects an increased cost of holding liquid assets.
The company adopted cautious stance (to hold more cash on hand) at time when financial markets witnessed resource crunch in third quarter after IL&FS group entities defaulted on repayments.
The net profit is expected to grow by 15 per cent in FY19 over the base of FY18, Shah said. The board of directors has declared an interim dividend of Rs 1.10 per share on the equity shares of the face value of Rs 1 each, the company informed the BSE. Its stock closed lower by 5.33 per cent at Rs 152 per share.
The total revenues grew by 25 per cent to Rs 2,791 crore in Q3FY19 from Rs 2,224 crore in Q3FY18, the company said.
Its total credit book, including distressed credit rose 18 per cent at Rs 42,380 crore at the end of Q3FY19. The retail credit book expanded by 25 per cent to Rs 17,756 crore from Rs 14,200 crore at the end of Q3FY18.