Edelweiss Financial Services reported a very poor set of earnings for Q4FY20. A jump in impairments due to revisions in the Expected Credit Loss (ECL) model and impact of covid-19, pushed the company into the red – its consolidated net loss for the quarter was at Rs.2281 crore.
Its total impairments for the quarter were at Rs.2,549 crore v/s Rs.434 crore (QoQ).
Its total income declined 35% (YoY) to Rs.1,966 crore.
It has said that key focus areas for FY21: a) Active COVID-19 impact management on liquidity and asset quality, b) equity capital raise of INR 1,500 – 2,000 Cr and c) enhancing operational efficiencies through use of technology.
The stock opened today at its 5% LC filter at Rs.57.50 and remains in the red at Rs.58 levels. Its 52-week high and low stands at Rs.179.25 and Rs.29.90 respectively.