IIFL Securities soars on stellar Q2 performance

IIFL Securities surged 15.97% to Rs 43.20 after consolidated net profit jumped 104.9% to Rs 50.92 crore on 18% increase in total income to Rs 218.22 crore in Q2 September 2020 over Q2 September 2019.

Consolidated profit before tax (PBT) soared 42.6% to Rs 69.32 crore in Q2 September 2020 as against Rs 48.60 crore in Q2 September 2019. Tax expense for the quarter spurted 127.4% at Rs 19.31 crore as against Rs 8.49 crore paid in Q2 September 2019. The Q2 result was declared after market hours on Friday, 16 October 2020.

Assets under management stood at Rs 33,113 crore in Q2 September 2020. R. Venkataraman, the managing director (MD), said that: "Our customer acquisition efforts are yielding results. We continue to invest in technology and mobile platforms to maximize customer experience. With the lockdown getting lifted and the macroeconomic environment gradually improving, the outlook for the sector continues to remain sanguine."

IIFL Securities has over 2,500 points of presence across India and provide research coverage on over 225 companies. During the quarter, the average daily market turnover (including F&O) for the broking business was at Rs 23,964 crore (BSE and NSE), registering a 40% quarter-on-quarter (Q-o-Q) growth, and the share of NSE daily cash turnover stood at 3.1%, up 10% Q-o-Q. Retail broking revenue was Rs 80 crore for the quarter ended 30 September 2020, recording a 49% year-on-year (Y-o-Y) and 21% quarter-on-quarter (Q-o-Q).

In the investment banking segment, the previous quarter has been a strong quarter for the company. It completed 4 transactions consisting of 3 QIPs and 1 buy-back. Major deals completed include QIP for ICICI Bank, HDFC and Info Edge. IIFL Securities has filed 3 DRHPs over the previous quarter - a number of IPOs are in various stages of execution. Its deal pipeline remains robust for the coming quarters, it added.

Meanwhile, Venkataraman Rajamani, the co-promoter and managing director of the company have been appointed as the chairman of the company with immediate effect.

IIFL Securities along with its subsidiaries offers advisory and broking services, financial products distribution, institutional research and investment banking services.

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