ICICI Securities Q1 PAT jumps 61% YoY to Rs 311 cr

On a consolidated basis, ICICI Securities recorded a 61% increase in net profit to Rs 311 crore in Q1 FY22 as against Rs 193 crore in Q1 FY21 on account of growth in revenue and improvement in margins.

Jul 21, 2021 12:07 IST capital market

On a sequential basis, consolidated net profit declined 5.59% in Q1 FY22 from Rs 329.47 crore in Q4 FY21.

The company reported consolidated revenue of Rs 748 crore in Q1FY22, against Rs 546 crore in Q1FY21, up by 37%, aided by strong all-round performance in equities & allied business, distribution business, distribution business, private wealth management business, as well as investment banking business.

Consolidated profit before tax fell 5.58% quarter on quarter but jumped 60.6% year on year to Rs 416.69 crore in Q1 FY22. Cost to income ratio stood at 44% in Q1 FY22, against 53% in Q1 FY21. Return on Equity (annualized) during the period was at robust 63% compared with 59% in Q1 FY21.

The stock broker had a client base of 5.8 million, of which 3.9 lakh were added during the quarter, which is highest ever addition in a quarter. The company has over 2.19 million active clients (those who have given us revenue/transacted across any of our product categories in the last 12 months) and over 1.85 million NSE active clients (those having traded on the NSE in the last 12 months), up 45% and 65% YoY respectively. Total client assets stood at Rs 4.4 lakh crore as on 30 June 2021 as compared to 2.4 lakh crore a year ago, registering a rise of 84%.

In Q1FY22, equities and allied business, which comprises retail equity, institutional equity, lending towards ESOP (Employee Stock Option Plans) & MTF (Margin Trade Funding), Prime & NEO subscription fees and other charges, rose 30% YoY to Rs 509 crore. The Retail Equities and Allied Business reported revenues at Rs 466 crore, up by 30 % from Rs 358 crore in Q1FY21. Prime subscription income grew 57% YoY to Rs 16 crore. The company continued to receive encouraging response to Prime, its annual subscription-based plan that provides a package of privilege pricing, exclusive research, and higher eATM (payout within 30 mins of selling stocks) limits per day.

Distribution revenue stood at Rs 121 crore in Q1FY22, up by 51% from Q1 FY21. ICICI Securities said that it is Indias second largest non-bank MF distributor by revenue and assets with a 4.5% revenue market share (based on FY20 AMFI data).

The companys Private Wealth Management (PWM) business reported Rs 182 crore of revenue in Q1 FY22, registering a rise of 135% YoY. The PWM business is a home-grown franchise set up to service affluent customers

Issuer Services and Advisory business (Investment Banking) revenue stood at Rs 47 crore in Q1 FY22, soaring 113% YoY. ICICI Securities executed 10 investment banking deals during the quarter, against three in the corresponding quarter last year.

Vijay Chandok, MD & CEO said, We are seeing a continued traction in our customer additions. Our customer additions through digital partnerships, with contemporary digital players like iMobile Pay, PhonePe, Google Pay, Flipkart & Amazon have started to contribute meaningfully. We also witnessed that visitors on our platform more than tripled between Dec 2020 and June 2021, due to initiatives taken around creating content for enhancing customer knowledge and experience by introducing proprietary digital knowledge properties targeted at different segments of the market. Our recently launched new age app ?ICICIdirect Money? offering mutual funds, insurance and other products along with ?ICICIdirect Markets?, which is currently in beta testing is expected to give further impetus to our digital initiatives. We are increasingly seeing commencement of a new structural trend of digital natives coming into the market and we also continue to see behavioural shifts amongst mature investors, throwing up slew of opportunities for tech focused digital company like us. We are uniquely positioned to emerge as full stack open architecture digital platform for life cycle investment & wealth, protection and borrowing needs of a retail Indian.

ICICI Securities, a subsidiary of ICICI Bank, operates ICICI Direct, Indias leading virtual financial supermarket, meeting the three need sets of its clients- investments, protection, and borrowing.

Shares of ICICI Securities closed 1.82% lower at Rs 760 on Tuesday. The domestic stock market is shut today on account of Bakri Eid.

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