58 DALAL STREET INVESTMENT JOURNAL I JULY 10 - 23 , 2017 DSIJ.in^
Cover Story
E
delweiss Financial Services Limited, the holding
company of India’s diversified financial services major,
Edelweiss Group, provides investment banking and
advisory services, besides offering agency services and
life insurance. On the financial front, Edelweiss Financial
Services revenue increased 33.91 per cent to `423.53 crore in
FY17 as compared to the previous fiscal. The company’s
operating profit rose 36.14 per cent to `286.94 crore in FY17 on
a yearly basis, although the company’s profit after tax witnessed
a decline of 17.08 per cent to `129.01 crore in FY17 as
compared to previous financial year.On a segmental basis, the company posted a good growth
of nearly 117 per cent in the income from the life Insurance
segment, growing from `110.96 crore in the third quarter
of the fiscal to `240.30 crore in the Q4FY17. The capital
based segment witnessed a growth of 14.71 per cent in the
fourth quarter on a quarterly basis, while the agency’s
contribution to the total income rose by over 9 per cent in the
last quarter.The company is expected to chart a robust growth in the
coming quarter as an impact of rapid growth in wealth
management segment. The Reserve Bank of India’s aggressive
stand towards eradicating NPAs is likely to boost demand of
the ARC segment.C
entrum Capital is India’s full service investment
banking major. The company has executed
transactions worth over `1.6 trillion till date.
On the financial front, Centrum Capital’s revenue
decreased 40.69 per cent to `26.81 crore in FY17 as
compared to the previous fiscal. However, the company’s
operating profit rose 267.99 per cent to `81.51 crore in FY17
on a yearly basis. Its profit after tax also increased 515.08 per
cent to `37.52 crore in FY17 as compared to the previous
financial year.On a segmental basis, the company’s housing loans and loans
and small business loans were the main growth drivers in the
FY2017, while forex-related operations of the company
substantially contributed to the revenues of the company.The conducive environment in the housing finance segment is
likely to provide an edge to the company as the lending
operations in housing forms one of the significant parts of the
company’s operations. India’s strengthened foreign exchange
position is likely to benefit the company further. Centrum
Capital’s increasing presence in digital space is also expected to
enable the company to expand to new markets. With a
crackdown on defaulters, the company’s core operations,
especially debt syndication, is also expected to witness a
noteworthy growth in the coming quarters.BSE Code: 532922 FV: 1 CMP: 191 BSE Code: 501150 FV: 1 CMP: 4 7. 7 0
Edelweiss Financial Services Centrum Capital
Market Cap (F.F.): 7,972.33 Crore Market Cap (F.F.):1,349.44 Crore
LAST FIVE QUARTERS - Consolidated (` Crore)
Mar'17 Dec'16 Sep'16 June'16 Mar'16
Total Income 5.49 11.05 13.41 6.82 11.89
Other Income 93.67 14.81 11.95 12.09 2.01
Operating Profit 42.50 15.582 14.60 8.80 3.45
Interest 9.38 9.638 6.257 6.271 6.27
Net Profit 30.45 2.13 3.35 1.59 2.51
Equity 41.60 41.60 41.60 41.60 41.60LAST FIVE QUARTERS - Consolidated (` Crore)
Mar'17 Dec'16 Sep'16 June'16 Mar'16
Total Income 1929.30 1605.20 1592.18 1465.40 1519.05
Other Income 8.28 7.27 4.42 6.78 6.66
Operating Profit 1015.26 949.94 964.33 929.80 903.35
Interest 725.45 708.88 698.69 695.97 695.97
Net Profit 143.83 144.13 135.76 124.76 89.23
Equity 83.26 83.12 82.84 82.32 81.405070901101301501701902102300102030κ050ς0(Closing price as of July 03, 2017)