Nuvama Wealth Management (formerly Edelweiss Securities) reported a nearly 100% increase in net profit to ₹178 crore in the quarter ending December 2023, attributing the growth to the expansion of its fee-based businesses. This represents a substantial jump from the net profit of ₹90 crore in the same period the previous year. The firm’s overall revenue climbed by 38% to ₹558 crore during the quarter, and by 29% to ₹1,467 crore for the first nine months of the fiscal year. However, its expenses also experienced an increase, rising by 21% to ₹328 crore from ₹270 crore a year ago.
Ashish Kehair, Nuvama Group Managing Director & Chief Executive, informed PTI that the company has obtained regulatory approval from Sebi for its Alternative Investment Fund (AIF) to be established as a joint venture with Cushman and Wakefield, a global real estate services firm. The AIF, with a value of ₹3,000 crore, is set to commence a roadshow to attract investors, following the receipt of the necessary regulatory green light.
The wealth management revenues of the firm saw an 18% boost to ₹305 crore, with a pre-tax profit of ₹111 crore in the third quarter of the fiscal. Additionally, the company was able to add 40,000 new customers to its wealth management arm, growing the overall client base to 11.35 lakh, of which 2 lakh clients are RM managed. The Assets Under Management (AUM) also saw a significant rise to ₹73,855 crore as of December 2023, indicating an increase of ₹8,000 crore.
Kehair also mentioned that the firm’s expansion is set to continue with the plan to launch an offshore wealth platform, starting with Dubai and Singapore in the upcoming quarters. He expressed optimism for sustained growth in 2024 due to the country’s economic reforms and the ongoing expansion of the digital economy.
