ICICI Securities posts Q3 profit of Rs 281 crore, down 26% y-o-y

ICICI Securities posts Q3 profit of Rs 281 crore, down 26% y-o-y

ICICI, ICICI securities
"Concerns over elevated inflation and its likely impact on global growth have resulted in weak capital markets globally."

ICICI Securities on Thursday announced its audited consolidated financial results for the quarter ended December 31. The brokerage firm posted the revenue of Rs 880 crore, down 7% YoY but up 2% from the September quarter.

Net profit came in at Rs 281 crore, down 26% since Q3FY21, and down 6% sequentially. Total client assets came in at Rs 6 trillion, a 7% YoY rise, while private wealth assets rose 15% YoY toRs 3.2 trillion.

Commenting on the results, MD and CEO Vijay Chandok said, “We are satisfied to see the outcome of our articulated strategy of being a neo-financial services company, offering a suite of products and services across investments, insurance, and loans taking shape.”

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“Given the structural shifts taking place like formalisation and equitisation of savings, entry of 100-150 million youth in the job market annually and projected healthy GDP growth over next several years leading to overall rise in affluence level, we believe we have a long runway for growth,” he added.

The firm’s total client base stood at 8.7 million, up 25% YoY. Total client assets on the platform during the quarter touchedRs 6 trillion, of which Rs 3.2 trillion pertained to its 76,000-plus private wealth customers, comprising HNIs, UHNIs and family offices.

Retail equity market share was retained at 10.5% while the commodity market share rose 157 bps to 5.6% YoY.

Non-broking revenue comprised 64% of overall revenues, compared with 58% in the September quarter. The portfolio management services book, at Rs 1,200 crore, reflected a growth of 171% YoY. Further, loans of over Rs 1,000 crore were distributed, which was a 71% YoY surge.

As regards its institutional business, the institutional equities segment saw revenue decrease by 32% YoY toRs 47 crore, primarily on account of a decline in Cash ADTOs and muted capital markets.

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Similarly, revenue for the issuer services and advisory business stood at Rs 48 crore, down 56% YoY owing to a reduction in the number of capital market deals. The company has a strong IPO pipeline of over Rs 41,100 crore across 21 deals, with the amount yet to be decided in 16 of them.

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First published on: 20-01-2023 at 00:40 IST
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