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21 Oct 2022

Isec Q2FY23 Performance Review

October 20 2022, Mumbai

ICICI Securities, a part of the ICICI Group and India's leading wealth-tech firm, today announced its un-audited consolidated financial results for the quarter ended September 30th, 2022 (Q2FY23)

Q2FY23 Performance Highlights

  • Revenue at 866 crore, up 1% YoY, up 9% sequentially
  • PAT at 300 crore, down 14% YoY, up 10% sequentially
  • H1FY23 interim dividend at 9.75/ share, Vs 11.25/ share in H1FY22
  • Total client assets at 5.78 lakh crore, up 13% YoY
  • Total client base at 84L+, up 33% YoY; NSE active clients at 30.58 lakh, up 35% YoY
  • Non broking revenue at 62% of overall revenue, vs 55% in FY22
  • Private wealth assets at 3.1 lakh crore; up 25% YoY
  • PMS book at ~ 1,100 crore, grew 40% QoQ
  • Retail equity market share at 10.6%, up 60 bps YoY; commodity market share up 240 bps at 5.5% YoY

Commenting on the results and financial performance, Mr. Vijay Chandok, Managing Director and CEO of ICICI Securities said: We had a satisfactory quarter and are progressing well on our articulated strategy of pursuing long term sustainable growth by continuing to diversify in favour of non-broking business. For this, we are investing in right kind of products, services, partnerships. Today broking revenue is about a third of our overall revenue, against two thirds a couple of years back.

The journey we began several quarters back to evolve as full-fledged financial marketplace with technology as the backbone of our operations and delivery, is progressing well. Our platform icicidirect.com continues to add new features and capabilities, serving the entire lifecycle requirement of customers across their financial needs.

There may be short term moderation in growth and market opportunities, but the runaway is long. We see multi-year tailwinds in the form of increasing financialisation and digitization of savings, continued entry of large number of youth in the job market every year, and rising affluence, and we are uniquely positioned to serve the evolving needs of our customers.

Business Highlights

ICICI Securities, which serves complete financial lifecycle needs of its customers across investments, insurance and loan needs, saw its total client base expand cross 84 Lakh, with 4.6 lakh added during the quarter.

Total client assets on the platform during the quarter touched 5.78 lakh crore, of which 3.1 lakh crore belonged to its 70,000 plus private wealth customers, comprising of HNIs, U-HNIs, and Family Offices.

In Q2FY23, Equities and Allied Business, which comprises retail equity, institutional equity, lending towards MTF (Margin Trade Funding) & ESOP (Employee Stock Option Plans), Prime & NEO subscription fees and other charges stood at 547 crore.

The Retail Equities and Allied Business reported revenues at 505 crore, marginally up vs 498 crore in Q2FY22.

The company commanded a retail equity market share of 10.6% in Q2FY23, vs 10.0% in Q2FY22. Its market share in the commodity segment, a segment it entered only 3 years back, has also gone up to 5.5% during the period, against 3.1% in Q2FY22.

During the quarter, the company launched a unique risk contained and visually rich Futures & Options (F&O) trading module called Flash Trade, which has been showing good traction. It has acquired Multipie, a web and app based networking platform for the investor community. The company has soft launched its super app - ICICIdirect which brings all products, and services, and tools in an extremely user friendly way to the consumer.

Institutional equities revenue during the quarter decreased by 33% YoY to 42.5 crore, primarily due to slowdown in market volumes and decline in capital market deals.

Distribution business continues to scale well with revenues at 156 crore in Q2FY23, up 5% YoY on the back of healthy growth across Mutual Fund and Life Insurance products.

I-Sec is India's leading MF distributor and its MF revenues grew by 10% YoY to 95 crore in Q2FY23. Revenue from Life Insurance business also grew 8% YoY to 20 crore. The company disbursed 879 crore worth of loans during the quarter, against ~ 686 crore in the same period last year.

I-Sec's Private Wealth Management (PWM) business reported 263 crore of revenue in Q2FY23 up 14% YoY.

Our Issuer Services and Advisory business (Investment Banking) revenue stood at ~ 49 crore in Q2FY23. The quarter saw sequential improvement in deal flows, but overall market remained less conducive for large scale public issuances. The company has a strong IPO pipeline of amount over 54,200 crore across 28 deals, and 16 deals where amount is yet to be decided.

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.
Rakesh Kumar Jha
rakesh.jh@adfactorspr.com
+91 98 739 04595