Investment banking major Edelweiss Capital declared its Q3 results today reporting a fall in revenues to Rs 198.6 crore as compared to Q2’s Rs 249.6 crore. The profit after tax was Rs 38.13 crore as compared to last quarter’s Rs 43 crore. Fee and commission based earning has also seen a major fall from Q2’s Rs 67.79 crore to Rs 47.65 crore this quarter. This is because of the fall in mergers & acquisition deals, private placements and also collapse of the stock markets.
Revenues from treasury, arbitrage and trading almost halved from Rs 85 crore last quarter to Rs 44 crore this quarter. Interest revenues stood at Rs 93.68 crore. The brokerage has seen a fall in revenues, though no specific revenues were disclosed, lending business has assets of Rs 800 crore.
The investment banking division closed three deals this quarter. Among them were $250 million acquisition of PeopleSupport by India’s Aegis BPO. Another deal was $75 million private equity fundraising for SKS Microfinance.
Edelweiss’s alternative asset management now has assets under management of $440 million. VCCircle had reported that Edelweiss is setting up a private equity fund, and had roped in Debi Guha from Government of Singapore Investment Corporation. This division is also getting into fixed income asset class.
“The current quarter has seen unprecedented events in the global markets. The operating environment in the Indian capital markets has been equally challenging. Our performance in the current quarter reflects this current challenging environment,” said Rashesh Shah, Chairman and CEO, Edelweiss Capital.