Q1 FY22 Financial Highlights: ICICI Securities Stock Analysis
The ICICI Securities analysis reported a strong consolidated revenue of Rs.748 Cr this quarter as against Rs.546 Cr in Q1 FY21. This 37% jump in revenue is due to strong growth across all businesses
Equities & allied revenue – Rs.509 Cr, up 30% YoY
Distribution income – Rs.131 Cr, up 51% YoY
Private wealth management revenue – Rs.182 Cr, up 135% YoY
Issuer Services & advisory revenue – Rs.47 Cr, up 113% YoY
PAT rose by 61% to Rs.311 Cr in Q1 FY22 from Rs.193 Cr in Q1 FY21 on account of growth in revenue and improvement in margins.
Cost to income ratio has reduced to 44% in Q1 FY22 from 53% in Q1 FY21.
Return on Equity stood at 63% compared to 59% in the corresponding quarter of last financial year.
Business Highlights: ICICI Securities Share price
3.9 lakh new clients were added during Q1 FY22, which is the highest ever addition in the quarter. Out of these, nearly 2.7 lakh were added through digital sourcing.
From the last 2 years, overall active clients and NSE active clients are gradually increasing.
Total client assets are up by 84%. At June end, it stood at Rs.4.4 lakh Cr as against Rs.2.3 lakh Cr in Q1 FY21.
Customer addition through digital players like iMobile Pay, Phone Pe, Google Pay, Flipkart and Amazon have started contributing significantly.
7,500 new clients were added in the private wealth management business, up 102% YoY.
Cross sell ratio has improved and clients with 2 or more products has increased from 0.87 mn to 1.05 mn in two years
ICICI Securities fundamental analysis executed 10 investment banking deals in Q1 FY22 against 3 in Q1 FY21. As per SEBI filing, company has strong IPO pipeline of 22 deals amounting to over Rs.43,700 Cr
New initiatives were taken during the quarter.
In addition to USA, Idirect Global expanded to UK, Japan, HK, Germany and Singapore during the quarter
HDFC Life and Max Bhupa Health insurance were added in its product portfolio
Launched ‘Masters of Street’, portfolios advised by India’s leading investment advisors
Strategy - digitalization
To regain its market share in equity business, company is taking digital initiatives
ICICI securities research analyst offers “ICICIdirect Prime” which is a subscription based product and “ICICIdirect Money” for mutual funds, insurance and other products.
It has launched “ICICIdirect NEO” and “ICICIdirect Markets” to provide best in class experience for investors and traders. NEO plan is gaining traction with over 1 lakh customers added in just few months
They are also working on two new platforms for advanced derivative traders
“ICICIdirect Breeze” API to be launched soon for retail traders. It will have best in class features for historical data.
Its API and Quant-based ecosystem is underway. It will provide 3rd party platforms, direct connectivity platforms
Conclusion: ICICI Securities Login
ICICI Securities annual report has reported strong financial and operational performance during Q1 FY22
It has lot of opportunities due to a new structural trend of digital natives entering market and behavioural shifts among mature investors
Increasing digitisation, increasing financialisation and equitisation of savings and emerging macro trends are expected to benefit the business
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