Depreciation fell 39% to Rs 5.95 crore, while PBT plunged 95% to Rs 17.14 crore. The company has written back tax provision of Rs 18.27 crore. The final bottomline of the company declined -84% to Rs 39.90 crore in the quarter ended December 2018.

The consolidated PAT of the company was impacted due to higher provisioning/ write offs taken in Aspire. Consolidated Adjusted PAT (excluding MTM gains in fund based, lumpy gain on PE exits and Aspire) was Rs 143 crore in Q3FY19, up 2% YoY, while it was 15% higher at Rs 370 crore in 9MFY19.

Consolidated net worth stood at Rs 3000 crore, gross borrowing was Rs 4900 crore and net borrowing was Rs 4500 crore (including Aspire). Excluding Aspire, gross and net borrowings were Rs 1200 crore and Rs 1000 crore, respectively and this is less than the market value of quoted investments at Rs 1400 crore. Overall gearing remains conservative at 1.7x, exAspire it is at 0.4x.

Book value of the company stood at Rs 205.24 per share at end December 2018.

Capital markets: Capital markets segment revenues were Rs 880 crore in 9MFY19 and contributed 45% of consolidated revenues. Profits were Rs 140 crore in 9MFY19 and contributed 47% of consolidated PAT. Broking and distribution business profit grew by 32% in 9MFY19 led by strong operating margin expansion on account of better operating leverage on the higher and linear revenues. In Retail Broking & Distribution, the market share in high-yield cash segment has been maintained on sequential basis. Overall market share stood at 1.7% in Q3FY19 despite higher F&O volumes. Distribution AUM surged 20% to Rs 8960 crore and Net Sales were Rs 1500 crore in 9MFY19. With only 11.5% of the near million client base tapped, distribution income is already at 16% of retail broking gross revenues. Investment banking business has continued to engage and conclude some significant transactions in this period. Overall transaction pipeline remains encouraging.

Asset Management: Asset Management business AUM across MF, PMS & AIF increased 7% to Rs 37400 crore. AMC now ranks among the Top-10 players by total equity assets, PMS ranks #1 while AIF assets are growing rapidly. Equity MF AUM of Rs 19100 crore is just 2% of the Industry Equity AUM of Rs 9.66 trillion. Private Equity manages an AUM of Rs 6000 crore (+30% YoY) across 3 growth capital PE funds and 4 real estate funds. Wealth Management business AUM grew by 7% to Rs 16400 crore in 9MFY19. RM count of this business has reached 135 in Q3FY19, +27% YoY. Overall Asset and Wealth Management revenues were Rs 600 crore in 9MFY19, +4% YoY and contributed 30% of consolidated revenues. Profits were Rs 147 crore and contribute 50% of consolidated profits, with highest scalability and with least capital employed among our portfolio of businesses.

Housing finance business: Loan book stood at Rs 4400 crore end December 2018. NII remain flat in 9MFY19 on YoY basis, despite reduction in loan book led by higher write offs and lower disbursements. Margins stood at 4.85% in 9MFY19 on YoY basis on account of lower borrowings and higher equity infusion during the period. Asset quality deterioration in 9MFY19 was on account of seasoning of legacy portfolio. Provisions were higher at Rs 178 crore on account of higher write offs in Q3FY19 to clean up the legacy book. Provisions including write offs stands at 69% as of Q3FY19. Strong support from parent continues with capital infusion of Rs 200 crore in Q3FY19. Gearing remains conservative at 4.5x.

Fund based business: Total quoted equity investment including unrealised gains was Rs 1400 crore as of Q3FY19. MTM on these gains are now part of reported earnings under Ind-AS reporting. Cumulative XIRR of these investments is 17%, which is the see-through RoE.

YTD Financial Performance

For the nine-months ended December 2018 (9MFY2019), the company has reported 11% decline in total income at Rs 1911.94 crore. Interest expense dipped 12% to Rs 1916.19 crore, while other expenses galloped 40% to Rs 1324.06 crore. Ensuing Gross profit slipped 75% to Rs 206.38 crore. Depreciation fell 31% to Rs 17.95 crore. PBT declined 77% to Rs 188.43 crore. Effective tax rate was flat at 25% in 9MF2019. The final bottomline of the company declined 76% to Rs 147.58 crore in 9MFY2019.