Edelweiss Capital Limited, one of India’s largest integrated Investment Banking companies announced its unaudited financial results for the quarter ended June 30, 2008.

Consolidated Financial Highlights
* Q1FY09 Revenues of INR 268.93 cr vs INR 143.74 cr for Q1FY08 (Growth of 87%)
* Q1FY09 Profit after Tax of INR 63.78 cr vs INR 41.93 cr for Q1FY08 (Growth of 52%)
* Performance Highlights– Q1FY09 over Q1FY08
* Fee and Commission Revenues for Q1FY09 of INR 88.65 cr, up from INR 81.55 cr for Q1FY08
* Treasury, Arbitrage and Trading Revenues for Q1FY09 of INR 70.25 cr, up from INR 44.60 cr
for Q1FY08
* Interest Revenues for Q1FY09 of INR 76.31 cr, up from INR 9.80 cr for Q1FY08

Business Update – Edelweiss Capital Group (“the Group”)

The Group net worth now stands in excess of INR 2400 cr. The strong and liquid balance sheet of the company is a key differentiator and enables the Company to support the growth of different business lines and also maintain sufficient liquidity cushion.

While overall revenues have posted a robust YoY growth of 87% during Q1FY09, a particular outstanding feature is the strong growth of interest income to INR 76.31 cr in Q1FY09 over INR 9.80 cr in the corresponding quarter last year.

All our established businesses continue to perform well and the new businesses are securing a strong foundation despite market volatility in recent times.

The Investment Banking business has successfully closed 4 transactions in Q1FY09. The Group’s Equities Broking business continues to show growth both in the Institutional and HNI client segments over corresponding period last year.

The Research coverage includes 215 stocks across 19 sectors accounting for about 70% of the total market capitalization. Our differentiated and thematic research distinguishes Edelweiss from other players and provides unique insights into Indian capital markets to our large institutional client base. Our research quality and caliber is well regarded across the institutional community.

The Wholesale Financing business continues to grow and now has an asset base of over INR 1000 cr. The interest income from financing business is now growing into a distinct contributor to our revenue streams.

Alternative Asset Management business covers alternate asset classes like Real Estate, Private Equity and multi-strategy funds. It delivers highly valued investment advice, both direct and indirect to few select funds. Despite difficult market conditions the AUMs/AUAs have remained relatively steady and stand over USD 600 million.

Edelweiss has received final regulatory approval from the Securities & Exchange Board of India (SEBI) to start its mutual fund business. Edelweiss plans to shortly launch niche schemes and use this growth engine for building up a stable retail customer base.

Edelweiss Capital Limited has a Long Term Debt rating of ‘LAA –‘ from ICRA which has helped us in designing Capital-Guaranteed Structured Products for HNIs and Corporate/Institutional Clients.

Speaking on the occasion, Mr. Rashesh Shah, Chairman and CEO, Edelweiss Capital Ltd. said: “Our performance in the current quarter provides a representation of the current market conditions and the resilience of our diversified business model. We have consciously chosen to nurture and support diverse set of businesses and this is something that we expect will help moderate the impact of variable market conditions. Our new business initiatives including Alternative Asset Management, Wealth Management and Wholesale Financing are progressing well and are expected to contribute strongly on a progressive basis. I am pleased to note that following the approval from the regulatory authorities we are readying the launch of certain key products through our asset management arm shortly.”

The Wholesale Financing business continues to grow and now has an asset base of over INR 1000 cr. The interest income from financing business is now growing into a distinct contributor to our revenue streams.

Alternative Asset Management business covers alternate asset classes like Real Estate, Private Equity and multi-strategy funds. It delivers highly valued investment advice, both direct and indirect to few select funds. Despite difficult market conditions the AUMs/AUAs have remained relatively steady and stand over USD 600 million.

Edelweiss has received final regulatory approval from the Securities & Exchange Board of India (SEBI) to start its mutual fund business. Edelweiss plans to shortly launch niche schemes and use this growth engine for building up a stable retail customer base.

Edelweiss Capital Limited has a Long Term Debt rating of ‘LAA –‘ from ICRA which has helped us in designing Capital-Guaranteed Structured Products for HNIs and Corporate/Institutional Clients.

Speaking on the occasion, Mr. Rashesh Shah, Chairman and CEO, Edelweiss Capital Ltd. said:“Our performance in the current quarter provides a representation of the current market conditions and the resilience of our diversified business model. We have consciously chosen to nurture and support diverse set of businesses and this is something that we expect will help moderate the impact of variable market conditions. Our new business initiatives including Alternative Asset Management, Wealth Management and Wholesale Financing are progressing well and are expected to contribute strongly on a progressive basis. I am pleased to note that following the approval from the regulatory authorities we are readying the launch of certain key products through our asset management arm shortly.”

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