Edelweiss Financial Services reports Rs 63 crore loss in third quarter

Edelweiss Financial Services reports Rs 63 crore loss in third quarter

Limited on Saturday reported a consolidated net loss of Rs 63 crore for the third quarter ended in December 2020.

It had registered a net profit of Rs 35.32 crore in the same quarter last year. Sequentially, the loss widened from Rs 56.12 crore in quarter ended September 2020.

The company’s total income during Q3FY21 also fell to Rs 2,191.34 crore as against Rs 2,649.56 crore in the same quarter of 2019-20, Edelweiss said in a regulatory filing.

The company said its fee income during the quarter at Rs 477 crore was back to the pre-Covid level and there is strong traction across wealth management, asset management and ARC (asset reconstruction company).

Customer assets grew by 17 per cent from a year ago at Rs 2.65 lakh crore.

“We had a calibrated approach on the book growth in our NBFCs which led to lower revenue from credit. All our other businesses continue to do well,” Edelweiss said.

There were robust recoveries in asset reconstruction of Rs 2,200 crore in Q3FY21, even with IBC suspension, it said.

Edelweiss Group operates ten entities across NBFC, housing finance, wealth management, asset management, asset reconstruction, life insurance, general insurance and insurance broking.

“As the Indian economy enters a phase of strong economic growth, it presents exciting opportunities and headroom for growth for each of our businesses.

“FY21 has been a year of re-set. Throughout the year, including in Q3, we have focused on fortifying each of our businesses with growth capital…We are focusing on getting future ready for FY 22 and beyond,” said Rashesh Shah, Chairman and CEO, Limited.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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