IIFL Securities Q2 2023 financial overview: Key takeaways and growth figures

IIFL Securities Ltd has revealed a noteworthy surge in figures in its Q2 2023 results. The company’s Total Income for the quarter landed at ₹533.7 Cr, marking a year-on-year growth of 65%. This momentum carried into the half-year, with a Total Income of ₹944.7 Cr, indicating a 53% growth from the previous year. The Total Comprehensive Income also followed a similar trajectory, recording ₹107.4 Cr for Q2 2023 (a 94% y-o-y increase) and ₹181.4 Cr for H1FY24 (an 86% y-o-y boost). Assets under the firm’s management and custody reached an impressive ₹1,69,822 Cr.

Director’s Perspective on the Financial Performance

R. Venkataraman, Chairman & Managing Director of IIFL Securities, remarked on the results, stating, “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.”

A Closer Look at Retail and Institutional Broking

A dominant force in the capital market, IIFL Securities has spread its wings with over 2,500 points of presence across India, extending unparalleled research coverage on 267+ companies. For the reported quarter, the broking business saw an average daily market turnover (inclusive of F&O) of ₹2,49,979 Cr, signifying an 84% y-o-y and 8% q-o-q rise. The brokerage revenue for the quarter stood at ₹270.6 Cr, highlighting a growth of 66% y-o-y.

Financial Products Distribution (FPD) Metrics

Within the FPD arena, IIFL Securities offers a broad spectrum of products ranging from mutual funds and insurance to IPOs and bonds. The FPD’s AUM reached ₹22,471 Cr, with the insurance premium for H1FY24 touching ₹97.4 Cr, a 3% y-o-y increase. Moreover, Mutual Fund AUM showed a 16% growth year-on-year, positioning itself at ₹8,587 Cr, while the SIP AUM recorded a growth of 34% y-o-y, amounting to ₹2,287 Cr.

Investment Banking Achievements in Q2FY24

Q2FY24 was marked by significant accomplishments in the investment banking domain. Seventeen successful deals across capital markets, debt advisory, and private equity were achieved, including prominent transactions for Union Bank, Brookfield REIT, and Yatra Online, among others. Their deal pipeline remains promising, and they’re handling numerous transactions at different execution stages, backed by superior research and potent distribution capabilities.