The ICICI Securities analysis reported a strong consolidated revenue of Rs.857 Cr in Q2 FY 22 as against Rs.680 Cr in Q2 FY 21. This 26% YoY jump in revenue is due to strong growth across all business segments
Broking & Distribution– Rs.752.9 Cr, up 25% YoY
Issuer Services & Advisory – Rs.72.7 Cr, up 17% YoY
Treasury – Rs.31.0 Cr, up 108% YoY
PAT rose by 26% to Rs.351 Cr in Q2 FY22 from Rs.278 Cr in Q2 FY21 on account of growth in revenue and improvement in margins.
Cost to income ratio is same as Q2 FY21 – 45%
Return on Equity stood at 66%
Company declared an interim dividend of Rs.11.25 in Q2 FY 22 as compared to Rs.8 in Q2 FY 21
Client acquisition remains strong
Company has a client base of ~63 lakh out of which 5.8 lakh new clients were added during Q1 FY22, which is the highest ever addition in the quarter. It has shown a 5 times increase in client acquisition YoY.
From the last 2 years, overall active clients and NSE active clients are gradually increasing.
Total client assets are up by 77% YoY. At Sep end, it stood at Rs.5.1 lakh Cr as against Rs.2.9 lakh Cr in Q2 FY21.
6,900 new clients were added in the private wealth management business, up 115% YoY.
Cross sell ratio has improved and clients with 2 or more products has increased from 8.8 lakh to 10.9 lakh in two years
Equities Business
Equity and derivatives segment volume have decreased by 14% and 8% respectively YoY
Market share is at the same level as it was in the corresponding quarter last year
Source – ICICI Securities Presentation
It has increased its research coverage from 321 to 331 companies
Distribution Business
The distribution business has seen significant growth across mutual funds, insurance and loan segment. SIP flows increased by 47% YoY
The company is focusing to improve distribution income through products such as insurance, PMS, AIF, bonds, NPS, deposits etc.
Private Wealth Management and Issuer Services & Advisory
Total AUM of private wealth management business is up by 115% and revenue is up by 129%.
As per SEBI filing, company has strong IPO pipeline of 54 deals amounting to over Rs.1.2 lakh Cr
New Initiatives taken by ICICI Securities during Q2 FY 22
ICICI Securities has partnered with HSBC Bank during the quarter to provide 3 in 1 account services. Recently it has added HDFC Life for Life Insurance and Max Bupa for Health Insurance
During the quarter, it has launched a new trading app - ICICIdirect Markets App and it has seen over 1 lakh downloads
It also introduced portfolios of US stocks and ETFs curated by renowned global fund managers and premium portfolios ‘Smart Beta’
Conclusion: ICICI Securities
ICICI Securities annual report has reported strong financial and operational performance during Q2 FY22
It has evolved from an e-broker to one-stop-shop for customer’s financial journey and now they are transitioning to a digitally integrated financial marketplace.
Mr. Vijay Chandok, Managing Director and Chief Executive Officer, said, “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.”
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