IIFL Securities hits fresh 52-week high after profit nearly doubles in September quarter

Shares of stock brokerage firm IIFL Securities rose as much as 18.64 per cent to fresh 52-week high of Rs 111.53 a day after it reported strong set of September quarter earnings. IIFL Securities' net profit at the end of second quarter of current financial year came in at Rs 107.77 crore, up 94 per cent from Rs 55.67 crore during the same period last financial year.

IIFL Securities' revenue from fee and commission rose 61 per cent to Rs 427.77 crore from Rs 265.91 crore in the year ago period.

“We are pleased to report a strong growth for the quarter with all business segments gaining momentum. Our investment banking segment completed 17 transactions including one M&A transaction. Deal pipeline is also strong,” said R. Venkataraman, Chairman & Managing Director, IIFL Securities.

For the quarter, the average daily market turnover (including F&O) for the broking business was above Rs 2.49 lakh crore, up 84 per cent annually and up 8 per cent sequentially.

Total brokerage revenue was Rs 270.6 crore for the quarter ended September 30, 2023, up 66 per cent. IIFL’s Institutional broking segment provides comprehensive research coverage, covering over 267 stocks across 20 plus sectors accounting for over 74 per cent of India’s market capitalization.

Its investment banking arm also staged strong performance as its investment banking division completed 17 deals across capital markets, debt advisory and private equity. Select transactions completed by included QIP for Union Bank and Brookfield REIT, IPO for Updater Services Limited and Yatra Online, IPO and Pre-IPO for Zaggle Pre-paid Ocean Services and Private Equity for FundsIndia.

Its deal pipeline remains robust as it is running multiple transactions which are at various stages of execution. "We are well positioned to grow our segment given our superior research and strong distribution capabilities," IIFL Securities said.

As of 2:40 pm, IIFL Securities shares traded 15 per cent higher at Rs 108.25, massively outperforming the S&P BSE SmallCap index which was down 0.45 per cent.