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 December 2021 (Q3FY22) as compared to the corresponding quarter last year (Q3FY21).
The company reported consolidated revenue of ₹942 crore in Q3FY22, against ₹620 crore in Q3FY21, up 52%, aided by strong all round performance across business segments.
Consolidated Profit After Tax (PAT) for Q3FY22 stood at ₹380 crore, Vs ₹ 267 crore in Q3FY21, up 42%.
Cost to income ratio stood at 46% in Q3FY22, while Return on Equity (annualized) was at robust 73%.
ICICI Securities has a client base of ~70 lakh, of which over 6.8 lakh were added during the quarter, which is highest ever addition in a quarter, for the sixth quarter in a row. Digital sourcing and open architecture approach continue to demonstrate strength with 81% of new customers coming from non ICICI Bank channels.
The company has over 3 million active clients (those who have transacted across any product categories in the last 12 months) and over 2.7 million NSE active clients (those having traded on the NSE in the last 12 months), up 89% and 114% YoY respectively.
Total client assets stood at ₹5.6 Lakh crore on 31st December, 2021, vs Rs. 3.4 Lakh crore a year ago, up 64%.
In Q3FY22, Equities and Allied Business, which comprises retail equity, institutional equity, lending towards ESOP (Employee Stock Option Plans) & MTF (Margin Trade Funding), Prime & NEO subscription fees and other charges, rose 36% year-on-year to ₹596 crore. The Retail Equities and Allied Business reported revenues at ₹527 crore, up 35%, vs ₹391 crore in Q3FY21.
ESOP & MTF interest income rose 229% year-on-year to ₹146 crore in Q3FY22 and the daily average funded book for the quarter for these businesses stood at ₹6,623 crore against ₹1,840 crore in Q3FY2021. Prime + Neo subscription, and other fees and charges income grew 50% YoY to ₹33 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 limits per day. Almost a million customers have taken Prime membership, vs about half a million a year ago. Prime and Prepaid customers together contribute 62% of retail equities revenue.
During the quarter, ICICI Securities partnered with smallcase to offer curated baskets of stocks or ETFs to ICICIdirect customers. The company further reduced the payout time under its eATM facility to 5 mins from 30 mins, an industry first. For the trading community, Isec launched One Click Derivative in F&O and Breeze API, a next gen trading API with several innovative and unique features.
Institutional equities revenue during the quarter increased by 50% year-on-year to ₹69 crore, further consolidating its position among the top domestic institutions and also strengthened its FII franchise by entering into partnerships. I-Sec's institutional research team secured #1 position in 4 sectors in Asiamoney poll.
Distribution revenue stood at ₹164 crore in Q3FY22 up 55% against Q3FY21.
ICICI Securities is India's second largest non-bank MF distributor by revenue and assets. (based on FY21 AMFI data). ICICI Securities' MF revenues grew by 54% YoY to ₹97 crore in Q3FY22. On the back of SIP count rising 44% YoY to ~1 million in December 2021, the company's market share in SIP flows has expanded to 3.9% in Q3FY22 from 3.7% in Q3FY21. ICICI Securities' MF AUM is up 31% YoY and is at an all-time high.
ICICI Securities is also a leading distributor 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). This business grew by 55% YoY in Q3FY22 to ₹67 crore. ICICIdirect disbursed ₹590 crore worth of loans during the quarter, against ₹430 crore in the same period last year. During the quarter, the company had a 9.1% market share in SGB distribution and 12% for ETF distribution (as of Sep '21).
During the quarter, the eATM facilty was extended to MF customers, wherein customers received 50-70% of their redemption value instantly. The company has on-boarded CoverFox for auto and health insurance to further offer more choice to customers.
I-Sec's Private Wealth Management (PWM) business reported ₹259 crore of revenue in Q3FY22 up 128% on-year. The PWM business is a home-grown franchise serving ~ 65,140 High Networth and Ultra High Networth (HNI/U-HNI) clients (~3,290 added during the quarter), with an asset base of ₹2.83 Lakh crore, up 92% year-on-year.
Our Issuer Services and Advisory business (Investment Banking) revenue stood at ₹111 crore in Q3FY22, up 372% on-year. ICICI Securities is ranked #1 in IPO / FPO / InvIT / ReIT issuance (by amount issued) with a 68% mobilization marketshare (9MFY22). The company has strong IPO pipeline of 63 deals amounting to over ₹ 850 billion.
Mr. Vijay Chandok, Managing Director and Chief Executive Officer, said, "We are happy to report an encouraging operational and financial performance. Our broad-based and digital-led customer acquisition engine continues to break previous quarterly records. During the quarter, 68% of customers acquired are under 30 years of age (vs 44% YoY) and 87% are from tier II and below towns (vs 69% YoY).
We have identified several underserved pockets where we see a lot of potential. These include young professionals and new entrants to the job market, retirees, NRIs etc. and each's investment objectives is very different from the other. To win them over, we are sharpening our delivery and overall value proposition.
As we continue our journey of transitioning to a digitally integrated financial marketplace, we are adopting 'mass personalisation' approach. Towards this we are investing in next gen skillsets, tools, platforms and capabilities, through which we are able to offer highly customized solutions matching an investor's risk appetite and goals. Although we have a long way to go, early success is already visible through metrics like improvement in cross sell ratios (1.75 in Q3FY22 vs 1.6 in Q3FY20) and clients with two or more products (1.12 million in Q3FY22 vs 0.91 million in Q3FY20)."
Shares of ICICI Securities Limited was last trading in BSE at Rs. 823.35 as compared to the previous close of Rs. 820.00. The total number of shares traded during the day was 12052 in over 1328 trades.
The stock hit an intraday high of Rs. 838.00 and intraday low of 820.65. The net turnover during the day was Rs. 9950261.00.