IIFL Securities has reported a 33 per cent plunge in its profit before tax at Rs 48.6 crore for the July-September quarter of the current financial year.
In comparison, the company had posted a profit before tax of Rs 72.32 crore in second quarter ended September 30, 2018.
The company's total revenues declined to Rs 184.86 crore in the quarter under review from Rs 244.05 crore in the same period preceding fiscal.
"The broking industry has been facing headwinds for the last few months. We have seen a steep decline in the volume and price of small- and mid-cap stocks, which affected retail sentiments," IIFL Securities Managing Director R Venkataraman said in a statement.
"Post the reform measures announced by the government, we are optimistic that the market will pick up in the second half of the financial year," he added.
IIFL Securities primarily offers advisory and broking services, financial products distribution, institutional research and investment banking services.
As per the Composite Scheme of Arrangement between IIFL Finance, IIFL Securities and other five entities of IIFL Group, the company had allotted new equity shares to the shareholders of IIFL Finance in the ratio of 1:1 in June.