ICICI Securities Q1 FY22 Conference Call Highlights

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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