The income from operations declined 10% to Rs 2389.55 crore in the quarter ended September 2019. Interest expenses rose 1% to Rs 1201.47 crore, while other expenses (including staff cost, provisions and other expenses) increased 3% to Rs 873.23 crore. Ensuing Gross Profit dipped 48% to Rs 330.54 crore in Q2FY2020.

Depreciation surged 59% to Rs 49.72 crore, while provisions moved up 19% to Rs 173.15 crore in Q2FY2020. PBT dipped 76% to Rs 107.67 crore.

Effective tax rate was lower at 36.9% in Q2FY2020 from 39.6% in Q2FY2019. The minority interest zoomed to Rs 16.80 crore in Q2FY2020 from Rs 4.11 crore in Q2FY2019. The final bottomline of the company plunged 81% to Rs 51.17 crore in the quarter ended September 2019.

Book value of the company stood at Rs 87.45 per share at end September 2019.

Credit Business:

At the end of Q2FY20, Retail Credit book was Rs 15111 crore and Corporate Credit book was Rs 16178 crore. Gross NPAs at 2.73 % and Net NPAs at 1.66%.

Edelweiss has entered into a co-lending partnership with State Bank of India, Central Bank of India and Punjab National Bank in addition to Bank of Baroda signed last quarter.

Launched, Edelweiss Smart Desk, an innovative solution for SMEs and Corporates. It is a customized portal offering one stop financial solutions & exciting value add services for business owners and their employees in just a few clicks.

The company continues to maintain liquidity at 17% of balance sheet. Overall Liquidity maintained at Rs 8400 crore. The consolidated Capital Adequacy Ratio for Edelweiss Group is 21.1% end September 2019. D/E (Ex Treasury Assets) declined further to 3.4x

Wealth Management: The AuA of the Wealth Management business grew to Rs 107800 crore at the end of Q2FY20.

Asset Management: Asset Management business comprises Alternative Asset Management and Mutual Fund. Leading player in the Private Debt space, with funds across Real Estate Credit, Distressed Credit and Structured Debt. The total AuM of Asset Management business stood at Rs 35,905 crore at the end of Q2FY20.

Capital Markets:

Institutional Broking business continued to be among the market leaders and performed in line with the industry. Research covers 258 stocks across 30 sectors. Edelweiss continued to be a major distributor in public issues of equities and debt.

Life Insurance:

Edelweiss Tokio Life Insurance is one of the fastest growing life insurance companies in India. It continues to scale up its business, with the objective of enhancing quality of business and focus on customer. The company follows the agency-led multi-channel distribution approach with emphasis on productivity and on building direct capability, specifically online. It continues to expand its distribution footprint across agency and alternate channels with presence across 121 branches in 93 locations and the agency channel force of 46,300 Personal Financial Advisors.

Embedded Value at Rs 1462 crore end September 2019 in Life Insurance Business, while persistency ratio stood at 78% for H1FY20

Insurance Broking:

US-based Arthur J. Gallagher & Co. (Gallagher) - one of the world's largest insurance brokerages and risk management services firms – has acquired a minority stake by way of primary equity infusion in Edelweiss Insurance Brokers (EIBL), post approval from the Insurance Regulatory and Development Authority of India (IRDAI).

Financial Performance H1FY2020

For the half year ended September 2019 (H1FY2020), the company has reported 4% decline in total income at Rs 4987.20 crore. Interest expense moved up 3% to Rs 2391.69 crore, while other expenses also rose 3% to Rs 1756.94 crore. Ensuing Gross profit declined 30% to Rs 838.57 crore. Depreciation jumped 67% to Rs 97.04 crore, while provisions galloped 62% to Rs 430.73 crore. PBT dipped 65% to Rs 310.80 crore. Effective tax rate stood at 34.9% in compared to 38.7%. The final bottomline of the company declined 66% to Rs 183.19 crore in H1FY2020.