ICICI Securities Q4 net profit up 28% y-o-y

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Published: May 8, 2020 3:01:19 AM

With increased focus on other products like home loans, fixed income products, corporate bonds and deposits, insurance, AIF, PMS, SGBs and NPS, non-MF distribution revenue rose 13% y-o-y to Rs 54 crore.

The company has 1.48 million active clients (those having traded in the last 12 months) and about 1.08 million NSE active clients.

ICICI Securities (I-Sec) on Thursday reported a consolidated net profit of Rs 156 crore in the March quarter, up 28% year-on-year (y-o-y), on account of growth in revenue and changes in statutory tax rates. The company reported a consolidated revenue of Rs 482 crore in Q4FY20, up 13% from Rs 428 crore in Q4FY19, aided by growth in retail equities & allied business. I-Sec has 4.8 million operational accounts, of which about 1.1 lakh were added during the quarter. The company has 1.48 million active clients (those having traded in the last 12 months) and about 1.08 million NSE active clients (those having traded on the NSE in the last 12 months), up 16% and 27%, respectively. During the quarter, I-Sec’s NSE active market share grew 40 basis points y-o-y to 10%.

During the quarter, the broking firm’s retail equities and allied business revenue rose 35% to Rs 292 crore from Rs 215 crore in Q4FY19. The allied business comprises lending towards ESOP & MTF, and Prime subscription fees. Employee stock option plans (ESOP) and margin trade funding (MTF) interest income rose 78% y-o-y to Rs 33 crore in Q4FY20. Prime subscription income grew 44% sequentially to nearly Rs 8 crore in Q4FY20.

Institutional equities business revenue during the quarter rose 13% y-o-y to Rs 37 crore due to increased traction in block deals. Distribution revenue stood at Rs 115 crore in Q4FY20, up 3% against Q4FY19. The company earned Rs 57 crore of revenue through mutual fund (MF) distribution during the quarter, down 4% from Rs 59 crore in Q4FY19.

With increased focus on other products like home loans, fixed income products, corporate bonds and deposits, insurance, AIF, PMS, SGBs and NPS, non-MF distribution revenue rose 13% y-o-y to Rs 54 crore.

Investment Banking revenue stood at Rs 10 crore in Q4FY20, down 23% y-o-y, primarily due to lower number of high-value deals. I-Sec’s private wealth management (PWM) business reported Rs 87 crore of revenue in Q4FY20, up 53% from Rs 57 crore in Q4FY19. It serves over 32,000 clients with an asset base of over Rs  83,000 crore.

I-Sec MD and CEO Vijay Chandok said the company’s predominantly digital business model has held it in good stead with 97% of equity and 94% of MF transactions conducted online by the clients themselves.  “During the quarter, we saw continuing retail participation as a steep correction in such a short period of time provided many with an opportunity to enter the market at multi-year low prices,” he added.

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