ICICI Securities Q3 PAT zooms 94% to Rs 267 cr

On a consolidated basis, ICICI Securities reported 94.6% jump in net profit to Rs 267 crore on 46.7% rise in total income to Rs 620 crore in Q3 December 2020 over Q3 December 2019.

ICICI Securities said its Q3 performance was aided by strong all round performance in equities & allied business, distribution business, private wealth management business, as well as investment banking business. Profit was boosted on account of growth in revenue and improvement in margins.

The brokerage house's profit before tax stood at Rs 357.78 crore in Q3 December 2020, surging 93% from Rs 185.1 crore in the same period last year. Current tax expense spiked by 83% to Rs 89.14 crore in Q3 December 2020 over Q3 December 2019.

 

The brokerage house said it has a client base of about 5.07 million, of which over 139,000 were added during the quarter, which is highest ever addition in a quarter. The company has over 1.63 million active clients and over 1.29 million NSE active clients up 17% and 34% year on year respectively. In Q3 FY21, ICICI Securities expanded its equity market share (by volume) by 160 basis points YoY to 10.5%.

In Q3FY21, equities and allied business, which comprises retail equity, institutional equity, lending towards ESOP and margin trade funding and NEO subscription fees, rose 66% YoY to Rs 428 crore.

The company's distribution revenue stood at Rs 108 crore in Q3 December 2020, up 5% against Q3 December 2019. I-Sec said it is India's second largest non-bank MF distributor by revenue and assets with a 4.5% revenue market share (based on FY20 AMFI data).

Private Wealth Management (PWM) business reported Rs 114 crore of revenue in Q3FY21 up 86% on-year. I-Sec's proprietary Portfolio Management Scheme (PMS) AUM stood at Rs 170 crore as on 31 December 2020, as against Rs 110 crore same period last year.

Commenting on company's performance, Vijay Chandok, MD and CEO of ICICI Sec said, "Our new customer acquisition during the quarter was highest ever and we are confident of maintaining the momentum on the back of increased traction on digital sourcing channel. Our sourcing funnel remains strong and additionally we have been successful in increasing our client engagement as they are increasingly consuming additional products and services from us. Over a million of our customers enjoy more than one product from our stable and our cross sell ratio has moved to 1.70 from 1.55 YoY. We will continue to drive this a focused approach, keeping the preference and appetite of the customers at the core of this philosophy. Our distribution business has also performed well this quarter, with both, the MF and nonMF revenues growing. We have added new product lines and they are witnessing healthy customer traction. We aim to remain the digital financial supermarket of choice and a go-to platform for sustainable wealth creation by meeting all the financial lifecycle needs in investments, protection, and borrowing."

Shares of ICICI Securities were fell 4.71% to Rs 425. ICICI Securities, a subsidiary of ICICI Bank, operates ICICI Direct, India's leading virtual financial supermarket, meeting the three need sets of its clients- investments, protection, and borrowing.

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