ICICI Securities jumped 3% to Rs 388.30 after consolidated net profit rose 28.3% to Rs 155.88 crore on a 12.5% rise in total income to Rs 481.94 crore in Q4 March 2020 over Q4 March 2019.
Net profit during the quarter grew on account of growth in revenue and changes in statutory tax rates. ICICI Securities reported 4.8 million operational accounts, of which about 1.1 lakh accounts were added during the quarter. The company said it has 1.48 million active clients (those having traded in the last 12 months). During the quarter, ICICI Securities' NSE active market share grew by 40 basis points on-year to 10%.
ICICI Securities' retail equities and allied business revenue rose grew 35% to Rs 292 crore as against Rs 215 crore reported in Q4 March 2019. While the private wealth management (PWM) business reported a revenue of Rs 87 crore in Q4 March 2020, rising by 53% from Rs 57 crore posted in Q4 March 2019. Investment banking revenue stood at Rs 10 crore in Q4 March 2020, declining 23% year on year, primarily due to lower number of high value deal.
Commenting on company's performance, Vijay Chandok, Managing Director and Chief Executive Officer, said, We had an eventful quarter which tested the resiliency of our business model. During these testing times, we ensured safety of our employees and continuity for our customers. Our predominantly digital business model has held us in good stead with 97% of equity and 94% of MF transactions conducted online by the clients themselves. Our platform has proved its mettle by successfully serving unprecedented number of concurrent users with very high trading volumes. Our proactive and real time risk management framework ensured we dealt with market volatility satisfactorily. 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. We remain focused towards digitizing more and more of our offerings, many of which we will launch alongwith our fintech partners. This is an extremely exciting journey with enormous possibilities going forward.
The company reported consolidated revenue of Rs 1,725 crore in FY20, almost flat against Rs 1,727 crore registered in FY19. Consolidated profit after tax (PAT) for FY20 was up 10% to Rs 542 crore from Rs 491 crore in FY19, on account of reduction in statutory tax rates. The company has also announced a final dividend of Rs 6.75 per equity share.
ICICI Securities offers a range of financial services including brokerage, financial product distribution and investment banking and focuses on both retail and institutional clients.
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