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21 Apr 2021

ICICI Securities Q4FY21 Performance

  • Revenue at 739 crore, up 53% YoY; strong growth across all businesses
    • Equities and allied revenue at 482 crore, up 46% YoY
    • Distribution income at 141 crore, up 22% YoY
    • Private Wealth Management revenue at 158 crore up 82% YoY
    • Issuer Services & Advisory* revenue at 53 crore up 441% YoY
  • PAT at 329 crore, up 111% YoY
  • Cost to income ratio at 40%, down 17 percentage points YoY; PBT margin at 60%; Return on Equity at robust 81%, up 26 percentage points YoY
  • Final dividend of 13.5/ shr announced, taking the full year dividend to 21.5/shr vs 11/shr in FY20
  • Over 3.5 lac clients added; up 3X YOY; highest ever quarterly client additions
  • Total client assets at 3.8 L crore#, up 85% YoY
  • Wealth AUM at 1.7 Lakh crore#, up 102% YoY
  • 1.91 million overall active clients, up 29% YoY; Equity market share up 50 bps YoY to 9.6%

* Our investment banking business

# Assets of our clients incl. equity demat assets maintained with ICICI Bank and excluding promoter holding

Mumbai, Wednesday, April 21, 2021 - ICICI Securities, a part of the ICICI Group and India's leading retail-led equity franchise, distributor of financial products, and investment bank, today declared all round improvement in financial and operational performance for the quarter ending 31st March 2021 quarter (Q4FY21) as compared to the corresponding quarter last year (Q4FY20).

Q4FY21 Performance

The company reported consolidated revenue of 739 crore in Q4FY21, against 482 crore in Q4FY20, up 53%, aided by strong all round performance in equities & allied business, distribution business, private wealth management business, as well as investment banking business.

Consolidated Profit After Tax (PAT) for Q4FY21 stood at 329 crore, Vs 156 crore in Q4FY20, up 111% on account of growth in revenue and improvement in margins.

Cost to income ratio stood at 40% in Q4FY21, against 57% in Q4FY20. Return on Equity (annualized) during the period was at robust 81%, vs 55% in Q4FY20.

The company declared a final dividend of 13.5/ share, amounting for 21.5/ share for FY21, vs 11/ share paid in FY20.

Business Highlights

ICICI Securities has a client base of ~5.4 million, of which ~3.5 lakh were added during the quarter, which is highest ever addition in a quarter. Digital sourcing continues to demonstrate strength with ~ 2.2 lakh customers added through this channel during the quarter, vs ~ 38,000 in Q3, 28,000 in Q2 and ~20,000 in Q1. Our open architecture model, where customers from any bank can trade on our platform, is also witnessing encouraging traction with over 55% of new accounts being opened by non-ICICI Bank channels. During the quarter, ICICI Securities tied-up with Federal Bank to provide equity broking services for its 10 million+ customers through icicidirect.com.

The company has over 1.91 million active clients (those who have given us revenue/transacted across any of our product categories in the last 12 months) and over 1.58 million NSE active clients (those having traded on the NSE in the last 12 months), up 29% and 47% YoY respectively. In Q4FY2021, ICICI Securities expanded its equity market share (by volume) by 50 bps YoY to 9.6%.

Total client assets stood at 3.8 Lakh crore# on 31st Mar, 2021, vs 2.1 Lakh crore a year ago, up 85%.

In Q4FY21, Equities and Allied Business, which comprises retail equity, institutional equity, lending towards ESOP (Employee Stock Option Plans) & MTF (Margin Trading Facility), Prime & NEO subscription fees, and other fees and charges, rose 46% on-year to 482 crore. The Retail Equities and Allied Business reported revenues at 433 crore, up 48 % vs 294 crore in Q4FY20. ESOP & MTF interest income rose 75% year-on-year to 59 crore in Q4FY21 and the average book for these businesses stood at ~ 2,570 crore for Q4FY2021, against ~ 1,250 crore for Q4FY2020. Prime subscription income grew 96 % YoY to 16 crore.

The company continued to receive encouraging response to Prime, its annual subscription based plan that provides a package of privilege pricing, exclusive research, and higher eATM (payout within 30 mins of selling stocks) limits per day. Currently there are ~ 6.5 lakh Prime subscribers and Prime and Prepaid customers contribute ~64% of retail equities revenue.

Institutional equities revenue during the quarter increased by 30% year-on-year to 48 crore on the back of established traction with in DII (Domestic Institutional Investors) space and growing traction in the FII (Foreign Institutional Investors) space.

Distribution revenue stood at 141 crore in Q4FY21 up 22% against Q4FY20.

ICICI Securities is India's second largest non-bank MF distributor by revenue and assets with a 4.5% revenue market share (based on FY20 AMFI data). ICICI Securities' MF revenues grew by 22% YoY to 69 crore in Q4FY21. On the back of SIP count rising 12% YoY to 0.74 million in Q4FY21, the company's market share in SIP flows has expanded to 4.05% from 3.29% YoY. ICICI Securities' MF AUM is up 19% YoY and is 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). In FY21, it had a 10% market share in SGB distribution and 13% in ETFs (as of December 2020). During the quarter, the company distributed loans worth 530 crore against 220 crore in Q4FY20. This non-MF distribution revenue rose 29% YoY in Q4FY21 to 69 crore. With business environment rapidly improving, this business has made a strong comeback after a few quarters of subdued performance.

As digitization of products of services picks up pace, the company has reduced the number of physical branch network to 148 in Q4FY21 vs 172 a year ago. The company has a nationwide network of 18,400+(up 94% YoY) business partners, consisting of authorized persons, Independent Financial Associates (IFAs) and Independent Associates (IAs).

I-Sec's Private Wealth Management (PWM) business reported 158 crore of revenue in Q4FY21 up 82% on-year. The PWM business is a home-grown franchise set up to service affluent customers. It serves ~ 47,400 clients, (+~4,700 QoQ) with an asset base of 1.7 Lakh crore#, up 102% year-on-year.

ICICI Securities' proprietary Portfolio Management Scheme (PMS) AUM stood at ~ 220 crore as on 31th March 2021, against ~ 110 crore same period last year.

# Assets of our clients incl. equity demat assets maintained with ICICI Bank and excluding promoter holding

Our Issuer Services and Advisory business (Investment Banking) evenue stood at 53 crore in Q4FY21, up 441% on-year. ICICI Securities executed 15 investment banking deals during the quarter, against two in the corresponding quarter last year. ICICI Securities is ranked #1 in IPO/ FPO/ InvIT/ ReIT issuance with a 78% market share (FY21), and #2 in Merger Market league table (amongst domestic financial advisors) by number of deals. The company has strong IPO pipeline (as per SEBI filing) of 10 deals amounting to over 17,800 crore.

Management Commentary

Mr. Vijay Chandok, Managing Director and Chief Executive Officer, said, "We are happy to report strong all around financial and operational performance during the quarter, which is a testimony of successful implementation of the strategic vision we had articulated earlier and favorable market conditions. The Board has declared a final dividend of 13.5 per share, amounting to 21.5 per share for FY21, which is highest ever.

"We are focused on executing our strategy to digitally and seamlessly deliver highly personalized and relevant products and solutions for our customers. Towards this, are investing in building capabilities to cater to the rapidly growing segments like the millennials and Gen Z, which the company has started attracting in large proportions."

About ICICI Securities

ICICI Securities Limited (I-Sec) is a subsidiary of ICICI Bank Ltd. 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.

I-Sec operates www.icicidirect.com, India's leading virtual financial supermarket, meeting the three need sets of its clients- investments, protection, and borrowing. Through its four lines of businesses -- broking, distribution of financial products, wealth management and investment banking-- I-Sec serves customers ranging from the retail and institutional investors to corporates to high net-worth individuals to government.

I-Sec is listed on National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). For details, visit: www.icicisecurities.com

Disclaimer

Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', `expected to', etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the actual growth in broking business and other financial services in the countries that we operate or where a material number of our customers reside, our ability to successfully implement our strategy, including our use of the Internet and other technology our exploration of merger and acquisition opportunities, our ability to integrate mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, our growth and expansion in domestic and overseas markets, technological changes, our ability to market new products, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in insurance regulations and other regulatory changes in India and other jurisdictions on us. ICICI Securities Limited undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

For further details, contact:

ICICI Securities Ltd.
Rabin Ghosh
rabin.ghosh@icicisecurities.com
Adfactors PR Ltd.
Rasika Badshah
rasika.badshah@adfactorspr.com
+91 9821631379