ICICI Securities Q3 FY22 Financial Highlights3 min read
- The ICICI Securities analysis reported a strong consolidated revenue of Rs.942 Cr in Q3 FY 22 as against Rs.620 Cr in Q3 FY 21. This 52% YoY jump in revenue is due to strong growth across all business segments
- Broking & Distribution– Rs.808.5 Cr, up 40% YoY
- Issuer Services & Advisory – Rs.110.5 Cr, up 372% YoY
- Treasury – Rs.22.9 Cr, up 32% YoY
- PAT rose by 42% to Rs.380 Cr in Q3 FY22 from Rs.267 Cr in Q3 FY21 on account of growth in revenue and improvement in margins.
- Cost to income ratio is same as Q3 FY21 – 46%
- Annualized Return on Equity stood at 73%
Best quarter of Client acquisition
- Company has a client base of ~72 lakh out of which 6.8 lakh new clients were added during Q3 FY22, which is the highest ever addition in the quarter.
- From the last 2 years, overall active clients and NSE active clients are gradually increasing. Currently at 37 lakhs
- Total client assets are up by 64% YoY. At Sep end, it stood at Rs.5.6 lakh Cr as against Rs.3.4 lakh Cr in Q3 FY21.
- 3,290 new clients were added in the private wealth management business, up 92% YoY.
- Cross sell ratio has improved and clients with 2 or more products has increased from 8.7 lakh to 11.2 lakh in two years
- Retail equities and institutional equities revenue is up by 35% and 49% respectively
- Retail allied revenue is up on account of Employee Stock Option Plans (ESOP) and Margin Fund Trading (MFT) interest income which rose by 229% YoY
- 62% of retail equities revenue is contributed by Prime and Prepaid customers
- The distribution business has seen significant growth across mutual funds, insurance and loan segment. Revenue from distribution increased by 55% YoY to Rs. 164 crores.
- Loan worth Rs.590 Cr were disbursed during the quarter as against Rs.430 Cr in Q3 FY2
Private Wealth Management and Issuer Services & Advisory
- Total AUM of private wealth management business is up by 92% and revenue is up by 128% at Rs. 259 crores.
- As per SEBI filing, company has strong IPO pipeline of 63 deals amounting to over Rs.85,000 Cr
New Initiatives taken by ICICI Securities during Q3 FY 22
- ICICI Securities is developing and adding more features to its ‘Prime’ product, to increase a better customer experience and attract new ones.
- The company has partnered with small case to offer curated basket of stocks or ETFs to ICICI Direct customers.
- The company reduced its payout time order to 5 mins from 30 mins, which is the first time any company has incorporated such policies.
- For the trading community, the company launched Breeze API, a next-gen API with several innovative features.
- The company, extended eATM facility to MF customers, wherein customers received 50-70% of their redemptions instantly.
- The company has on-boarded Cover Fox for auto and health insurance to further offer more choice to customers.
Conclusion: ICICI Securities
- ICICI Securities annual report has reported strong financial and operational performance during Q3 FY22
- It has evolved from an e-broker to one-stop-shop for customer’s financial journey and now they are transitioning to a digitally integrated financial marketplace.
- The management is striving to build an alternate channel of income source to avoid getting caught in the cyclical nature of the industry.
- The new accounts being opened are mostly of people with age group below 30, which has further affected the ARPU [Average Revenue Per Customer]. The buying power with this age group will obviously be low compared to the traditional investors.
Mr. Vijay Chandok, Managing Director and Chief Executive Officer, said, “We are happy to report an encouraging operational and financial performance. Our broad-based and digital-led customer acquisition engine continues to break previous quarterly records. During the quarter, 68% of customers acquired are under 30 years of age (vs 44% YoY) and 87% are from tier II and below towns (vs 69% YoY)”