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Flattish 3% YoY PAT growth due to increased employee benefit expenses, finance cost and other expenses | ICICI Securities Q4 FY22 Concall Highlights

Flattish 3% YoY PAT growth due to increased employee benefit expenses, finance cost and other expenses | ICICI Securities Q4 FY22 Concall Highlights

Published on 21 April 2022 .Views 26 .Comments 0

Financial Highlights

  • Consolidated Revenue increased by 21% from Rs.739.3 Cr in Q4 FY21 to Rs.892.3 Cr in Q4 FY22.
  • Consolidated Profit after Tax increased by 3% from Rs.329.5 Cr in Q4 FY21 to Rs.340.3 Cr in Q4 FY22.
  • On a sequential basis, both consolidated revenue as well as profit after tax has declined due to loss in momentum because of geopolitical tensions

  • Decrease in brokerage income was more than offset by income from services which consists of distribution and issue services & advisory
  • Issuer services & advisory fee grew due to high level of fund raising activities. Distribution revenue increased due to growing traction in insurance and loans distribution
  • Company declared a dividend of Rs.12.75.

Business Highlights

  • Client acquisition for FY22 stands at 22.7 lakh which is the highest ever in a year. However, new clients acquired has decreased from 676,000 in Q3 FY22 to 618,000 in Q4 FY22
  • 66% of customers acquired are less than 30 years
  • Overall active clients have increased by 77.5% from 19.1 lakh in Q4 FY22 to 33.9 lakh in Q4 FY22. The number of NSE active clients increased to 30.3 lakh from 15.8 lakh YoY
  • There is sustained growth in client with two or more products
    Total client assets across all products has increased from Rs.3.80 lakh Cr (trillion) in Q4 FY21 to Rs.5.64 lakh Cr in Q4 FY22
  • Newly launched products have gained traction and have started contributing significantly
  • Company has a strong IPO pipeline of 67 deals amounting to over Rs. 87,900 Cr
  • Retail equity market share is up by 30 bps and in 10.1 as of Q4 FY22

Concall Highlights

  • Derivatives market share remains a focus area. To gain market share, they are investing in 4 key levers – pricing, experience, analytical tools and open API architecture
  • In derivatives segment, One Click derivatives platform is gaining traction
  • The company has added Prime Lifetime product which has gained traction in 2 months of launch
  • Upcoming new initiatives are Algo Trading, One-Touch Simplified Options Trading, Single Screen Immersive Trading and New Meta Trading (Desktop application Platform for power traders)
  • Management believes partnership with Coverfox will help grow insurance business
  • Money App and Markets App are building traction with more than 10 lakh downloads and nearly 4 star rating on Google Play
  • Company has won various awards in FY22. Management highlighted two awards won by them – The Best Securities House in India By AsiaMoney Best Securities Houses Awards 2021 and ‘Digital Wealth Manager o the Year – India’ by ‘The Asset Triple A Digital Awards 2022’
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