Edelweiss Financial Services Limited (EFSL) reported a strong Q2 FY24 performance, with consolidated profit after tax (PAT) reaching ₹110 crore, marking a 45% year-on-year (YoY) growth. The ex-insurance profit for EFSL stood at ₹163 crore, a 6% increase YoY, while consolidated revenue rose to ₹2,842 crore. This robust financial performance reflects EFSL’s strategic focus on profitability and steady expansion across its business lines.
Key Financial Highlights
- Asset Under Management (AUM): EFSL’s Enterprise Asset Allocation and Advisory (EAAA) AUM grew by 15% YoY, reaching ₹57,250 crore, with profitability up by 28% to ₹58 crore.
- Mutual Fund AUM: Achieved a 23% YoY growth, rising to ₹1,40,500 crore, along with a 21% increase in profitability to ₹15 crore.
- Asset Reconstruction Business: Showed a 12% YoY growth in profitability, totaling ₹91 crore.
- Insurance: Gross Written Premium for Zuno General Insurance rose by 27% YoY to ₹243 crore, with a substantial 66% reduction in losses.
Customer Expansion and Balance Sheet Strength
- Customer Base: EFSL’s customer base expanded by 45% YoY, now reaching 9.1 million customers, underscoring its strong market presence.
- Balance Sheet: The company reported a net worth of ₹6,386 crore, with net debt reduced by ₹2,250 crore YoY. Liquidity remains robust at ₹4,000 crore, and capital adequacy across entities stands at over 37%.
Rashesh Shah, Chairman of Edelweiss Financial Services, commented on the Indian economic outlook, stating, “The Indian economy is experiencing a temporary slowdown, with this quarter’s growth projected to be 20 basis points lower than the target. While revenue growth across India Inc. may reach a 16-quarter low, we anticipate a recovery due to demand surges in the festive season and robust private investments, particularly in real estate and corporate capital expenditures. With policy stability and sectoral incentives, India is well-poised to navigate global uncertainties, providing a positive outlook for sustained growth.”
As of 1:40 pm, Edelweiss shares were trading 4.5% higher on the NSE, reflecting strong investor confidence in the company’s ongoing growth trajectory.
