Back to Blogs HDFC Securities Ltd.-Result update of Stellar Q4 performance
Manoranjan Pal | 27/04/2020
HDFC Securities Limited, subsidiary of HDFC is one of the leading financial services intermediary in India with a customer base of more than 720,000. It is a stock broking and distribution arm of the HDFC Group for various financial products. It is the third largest broker in India with regards to its customer base. It operates with 278 branches across 165 major cities and towns in India. It has a strong promoter shareholding of 97.29%. It is a corporate member of both the Bombay Stock Exchange (BSE) and the National Stock exchange (NSE).
HDFC Securities has been able to post a stellar performance on a quarterly basis (Q4 vs Q3) for FY2020 as per the latest financial results posted on 16th April, 2020. The company has been successful in navigating the impact of the global COVID 19 pandemic and utilize the opportunity due to government decision to allow financial services sector to be classified as essential services.
Product Profile
The company provides products and services such as:
- Mutual Funds
- IPOs
- Derivatives
- Fixed Income
- ETFs
- Commodities
- Thematic Investment
- Value Added Services*
*Value Added Services – Provides investing and trading ideas, along with financial tools and calculators, tax solutions, will planning and robot advisors.
Financial Highlights
| Metrics | Q4 FY 2019 | Q3 FY 2020 | Q4 FY 2020 | Q4 vs Q3 Change* | Q4 vs Q4 Change** | FY 2019 | FY 2020 | Y-O-Y Change |
| Net Worth | – | – | – | – | – | 1,193.76 | 1,247.60 | 4.51% |
| Total Assets | – | – | – | – | – | 2,037.21 | 2,770.54 | 36.00% |
| Total Revenue | 205.45 | 214.30 | 277.42 | 29.45% | 35.03% | 770.66 | 862.26 | 11.89% |
| PAT | 106.41 | 93.45 | 134.13 | 43.53% | 26.05% | 329.82 | 384.15 | 16.47% |
| Basic EPS (in ₹ per share) | 68.36 | 60.42 | 85.77 | 41.96% | 25.47% | 212.00 | 245.86 | 15.97% |
| Diluted EPS (in ₹ per share) | 68.35 | 60.41 | 86.57 | 43.30% | 26.66% | 210.64 | 245.91 | 16.74% |
| Dividend (in ₹ per share) | – | – | – | – | – | 110.00 | 135.00 | 22.73% |
All values in ₹ Crores unless otherwise specified.
*Q4 vs Q3 change compares performance of Q4 FY2020 ending 31st March, 2020 over Q3 FY2020 ending 31st Dec, 2019.
** Q4 vs Q4 change compares performance of Q4 FY2020 ending 31st March, 2020 over Q4 FY2019 ending 31st March, 2019.
Key Highlights
- The Company’s Total revenue for Q4 2020 ended 31st March 2020 increased by 29.45% to ₹ 277.42 Crores compared to ₹ 214.30 Crores in Q3 2020 ended 31st December, 2019 and also increased by 35.03% when compared with ₹ 205.54 Crores for Q4 2019 ending 31st March, 2019.
- The Net Profit (PAT) for Q4 2020 ended 31st March 2020 increased by 43.53% to ₹ 134.13 Crores compared to ₹ 93.45 Crores in Q3 2020 ended 31st December, 2019 and also increased by 26.05% when compared with ₹ 106.41 Crores Q4 2019 ending 31st March, 2019.
- The Basic EPS for Q4 2020 ended 31st March 2020 increased by 41.96% over Q3 2020 ended 31st December, 2019 and also increased by 25.47% over Q4 2019 ending 31st March, 2019.
- The Diluted EPS for Q4 2020 ended 31st March 2020 increased by 43.30% over Q3 2020 ended 31st December, 2019 and also increased by 26.66% over Q4 2019 ending 31st March, 2019.
- The Net Profit Margin for Q4 2020 increased to 48.35% compared to 43.61% in Q3 2020 whereas, it stood at 44.55% for FY 2020 ended 31st March 2020 compared to 42.17% for FY2019.
- The Company posted Return on Assets (ROA) of 15.98% for FY 2020 and Return on Equity (ROE) of 31.47% for FY 2020 ending 31st March, 2020.
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