IIFL Securities stock rises 8% after 90% profit growth in Q2FY25

IIFL Securities has made headlines in the share market as its shares jumped by 8.33% to ₹404.90 during intraday trading on the Bombay Stock Exchange (BSE) on Wednesday. This surge follows the release of an impressive earnings report for the second quarter of the fiscal year 2024-25 (Q2FY25). The company’s robust performance has captured the attention of investors, further driving interest in share market investment.

Stellar earnings report

IIFL Securities, a prominent player in the non-banking financial services (NBFC) sector, reported a remarkable 90.3% year-on-year increase in net profit, amounting to ₹205.1 crore for Q2FY25. This is a substantial rise from ₹159.2 crore during the same quarter last year.

Revenue growth

The company also experienced significant growth in its revenue from operations, which surged by 27.3% to ₹645.4 crore, compared to ₹507 crore in the same quarter of the previous fiscal year. Operating performance showed notable improvement as well, with EBITDA or earnings before interest, tax, depreciation, and amortisation increasing by 67.3% to ₹266.4 crore, compared to ₹159.2 crore a year earlier. This performance led to an improved EBITDA margin of 41.3%, rising from 31.4% in the same period last year.

Strong brokerage and investment banking revenues

IIFL's total brokerage revenue saw a year-on-year increase of 17%, totalling ₹317.6 crore for the quarter. The investment banking segment performed exceptionally well, recording a 35% growth, reaching ₹51.4 crore, bolstered by 13 completed deals during the quarter. Additionally, revenue from the financial products distribution (FPD) segment grew by 25% year-on-year to ₹106.2 crore, with assets under management (AUM) in this segment standing at ₹31,239 crore as of September 30, 2024.

Stock performance

The stock of IIFL Securities has outperformed the market significantly this year, rising by 163.6% year to date and an impressive 307% over the past year. In comparison, the BSE Sensex has increased by only 11.2% year to date and 24.5% over the past year.

As of the latest update, the company’s market capitalisation is ₹11,870.27 crore, with shares trading at a price-to-earnings multiple of 17.73 times, corresponding to earnings per share of ₹21.08. At 11:19 AM, the stock price had adjusted slightly, up 2.84% at ₹384.35, while the BSE Sensex rose by 0.37% to 80,517.55.

Key takeaways

1. IIFL Securities shares surged by 8.33% on strong Q2FY25 earnings.
2. Net profit increased by 90.3% year-on-year to ₹205.1 crore.
3. Revenue from operations rose by 27.3% to ₹645.4 crore.
4. Total brokerage revenue grew by 17% to ₹317.6 crore.
5. The stock has risen by 163.6% year to date, outperforming the BSE Sensex.

Investors keen on share market investments should monitor IIFL Securities, given its exceptional growth and performance metrics.