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HDFC Securities posts strong show, Unlisted shares in high demand

HDFC Securities, the brokerage arm of HDFC Bank, has posted a strong show in the financial year ended on March 31, 2021, and the June 2021 quarter, the company results show.

According to the regulatory filing, the Mumbai headquartered brokerage firm clocked a revenue of Rs  452.11 crore in the June 2021 quarter, 65.72% higher than the revenue of Rs 272.81 crore in the same quarter the previous year.

The profit of the premium brokerage company almost doubled to Rs 862.26 crore from Rs 38415 crore during the same quarter the previous year.

In the financial year 2020-21, the total revenue of the company increased by 58.8% to Rs 1,399.43 crore and net profit was up by 38.11% of Rs 703.21 crore. The figures stood at Rs 857.47 crore and Rs 509 crore, respectively, in the preceding fiscal.

Earning per share (EPS) of the company almost doubled to 159.26 in the April-June 2021 period, which was 82.47 during the corresponding period the previous year.

The stellar financial performance in the last 15 months, has pushed the price of unlisted shares of HDFC Securities northwards. HDFC Securities unlisted shares are in high demand in the pre-IPO market.

During the April-June 2021 period, the company had declared and paid an interim dividend of Rs 120 per equity share amounting to Rs 189.20 crore including tax deduction at source, the regulatory filing said.

“The Covid-19 pandemic continues to have a considerable impact on economic activities across the various parts of the country and across the globe, ” said Dhiraj Relli, Managing Director of HDFC Securities in the filing.

“The Government of India and various state governments have introduced a series of initiatives over the past year including lockdowns in order to contain the impact of the virus.”

Stockbroking and depository services have been declared as essential services all through the year and accordingly, the Company has faced no business stoppage/interruption on account of the lockdown, he added.

The Company does not anticipate any material uncertainties which affect its liquidity position and also its ability to continue as a going concern.

HDFC Securities has completed more than two decades in the industry and brags an extensive network of branches across all major cities and towns in the nation.

The company is entitled with a strong parentage of HDFC group, which is the largest and most premium financial services group in the country. HDFC group is among the largest conglomerates of India.

It is a corporate member of both the  BSE and the NSE. HDFC securities are well known by professional traders for their comprehensive online trading portal offerings.

As of March 31, 2021, the broking firm had about 300 branches in more than 160 cities in the country. It also has multiple digital platforms to enable its customers to have easy access to its products.

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