ICICI Securities gained 1.5% to Rs 832.80 after the brokerage company posted a 26.3% increase in consolidated net profit to Rs 351.24 crore on a 26% rise in revenue to Rs 857 crore in Q2 FY22 over Q2 FY21.
The stock broking company's profit before tax stood at Rs 470.92 crore in Q2 FY22, 26.5% higher than Rs 372.30 crore reported in Q2 FY21, on account of growth in revenue and improvement in margins. The company said it added over 5.8 lakh clients and reported its highest ever quarterly addition.In Q2FY22, Equities and Allied Business which comprising of retail equity, institutional equity, lending towards ESOP & MTF (Margin Trade Funding), prime & NEO subscription fees rose 19% on-year to Rs 541 crore. The Retail Equities and Allied Business reported revenues at Rs 498 crore, up 20% year on year from Rs 416 crore in Q2FY21. ESOP & MTF interest income rose 160% year-on-year to Rs 116 crore in Q2 FY22. Prime subscription income grew 33% YoY to Rs 17 crore.
Distribution revenue stood at Rs 151 crore in Q2 FY22, rising 53% from Q2 FY21. ICICI Securities' MF revenues grew by 52% YoY to Rs 87 crore in Q2 FY22. The company's market share in SIP flows expanded to 4% in Q2 FY22 from 3.4% in Q2 FY21. ICICI Securities' MF AUM grew by 37% YoY and stood at an all-time high. ICICI Securities is also a leading distribution of other financial products like loans, fixed income products, corporate bonds and deposits, insurance, bank Fixed Deposits (FD), Alternate Investment Funds (AIF), Portfolio Management Services (PMS), Sovereign Gold Bonds (SGB), and National Pension Scheme (NPS). This business grew by 62% year on year in Q2 FY22 to Rs 61 crore. The company's market share of SGB for Q2FY22 was 9%, and ETF (as on 30th June) was 13%. ICICIdirect disbursed Rs 690 crore worth of loans during the quarter, against Rs 360 crore in the same period last year
The company's Private Wealth Management (PWM) business reported Rs 232 crore of revenue in Q2 FY22, up 129% on-year. The PWM business is a home-grown franchise serving 61,850 high net worth and ultra-high networth (HNI/U-HNI) clients (6,900 added during the quarter), with an asset base of Rs 2.49 Lakh crore, up 115% year-on-year.
Issuer Services and Advisory business (Investment Banking) revenue stood at Rs 73 crore in Q2 FY22, up 17% on-year.
Vijay Chandok, MD and CEO of the company said, I am happy to report highest ever quarterly customer addition yet again this quarter. During the quarter, younger millennials and Gen Z accounted for 65% of new customers (vs 39% a year ago) and those from tier II and below cities are now 84% of new customers (67% last year). We see a long growth runway, given our country's current position in the financialisation journey, expected secular long term GDP growth, large number of youth entering the job market annually and equally large number of retirees with both sets with differential needs. From an e-broker we have evolved into a one-stop-shop for our customer's financial lifecycle journey. We are now transitioning to a digitally integrated financial marketplace. For this we are acquiring and developing relevant skill sets and also doubling down on digital investments to automate processes and use new age tools like analytics and machine learning to provide customized solutions matching customer profile, risk appetite, and goals.
ICICI Securities is a subsidiary of ICICI Bank. The company began its operation in May 1995 and continues to grow its operation through expanding its client base and providing different type of services.
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