IIFL Securities disappoints in Q3: New SEBI norms the culprit, says management

IIFL Securities on Thursday reported a 9 percent increase in profit after tax at Rs 50.59 crore for the three months ended December 2020. In comparison, the company had posted a profit after tax (PAT) of Rs 46.48 crore in the year-ago period, IIFL Securities said in a regulatory filing to BSE.

The stock is on the radar as the total income has seen a fall on a quarter-on-quarter (QoQ) basis and customer addition has also slowed this quarter.

R Venkatraman, MD, IIFL Securities, I an interview to CNBC-TV18 said, “On a QoQ basis if you look at our revenue from operations and we have three separate lines of business which is retail broking, institutional booking, and distribution of products as well as investment banking. So we have seen some amount of de-growth happening in the broking segment on a sequential QoQ basis primarily because of the new norms announced by the SEBI -- one is the peak margin norms as well as the OTP for share pledge and that was off-set by a growth in our investment banking business because in the last quarter we saw large number of transactions taking place in investment banking space.”