May 28, 2024

ICICI Securities Q3 FY23 results


January 21, 2023, Mumbai : ICICI Securities, a part of the ICICI Group and India’s leading wealth-tech firm, today announced its audited consolidated financial results for the quarter ended December 31st, 2022 (Q3FY23)

Q3FY23 Performance Highlights

  • Revenue at ₹ 880 crore, down 7% YoY, up 2% sequentially
  • PAT at ₹281 crore, down 26% YoY and 6% sequentially
  • Total client assets at ₹6 lakh crore, up 7% YoY; Private Wealth assets at ₹2 lakh crore, up 15% YoY
  • Total client base at 87 Lakh+, up 25% YoY
  • Retail equity market share retained at 10.5%; commodity market share up 157 bps to 5.6% YoY
  • Non broking revenue at 64% of overall revenue, vs 58% in Q3FY22
  • PMS book at ~ ₹ 1,200 crore, grew 171% YoY
  • ₹ 1,000+ crore loan distributed, up 71% YoY

Business Highlights

ICICI Securities is India’s leading wealth-tech firm, which meets complete financial lifecycle needs of its customers across investments, insurance and loan needs, today said its Q3FY23 revenue stood at ₹ 880 crore, down 6% from the year-ago period, and Profit After Tax was ₹ 281 crore, down 26% YoY, on account of decline in cash volumes, muted capital market activities, increase in finance cost, and continued investments towards technology and other franchise value enhancing initiatives.

At the end of the quarter, the company saw its total client base expand cross 87 Lakh, with ~3 lakh added during the quarter.

Total client assets on the platform during the quarter touched ₹6 lakh crore, out of which ₹3.2 lakh crore pertains to its 76,000 plus private wealth customers, comprising of HNIs, U-HNIs, and Family Offices.


Retail Business

The company’s retail business comprises of Retail Equities & Allied Business, Financial Products Distribution Business, and Private Wealth Management Business.

The Retail Equities and Allied Business which includes lending towards MTF (Margin Trade Funding) & ESOP (Employee Stock Option Plans), Prime & NEO subscription fees, reported revenues at ₹504 crore, down 4% YoY. This was due to decline in cash volumes in the market. The company is witnessing encouraging traction in newer digital tools specifically targeted at the derivatives traders, due to which contribution from the cash segment has come down to 34% of overall equity revenue in Q3FY23 from 50% in Q3FY22. The company has expanded its derivatives market-share to 3.8% and maintained its overall retail equity market share at 10.5% during the quarter, after an increase of 90 bps in the previous quarter. In the commodity segment, where it entered only three years back, its market share was 5.6%, up 157 bps from the year ago period.

The Distribution Business reported revenues of ₹167 crore in Q3FY23, up 2% YoY on the back of growth in Mutual Fund and Life Insurance products. I-Sec is India’s leading MF distributor and its MF revenues grew by 4% YoY to cross ₹ 100 crore in Q3FY23. Revenue from Life Insurance business also grew 19% YoY to ₹21 crore. The company disbursed over ₹1,000 crore worth of loans in Q3FY23, against ~ ₹ 588 crore Q3FY22.

I-Sec’s Private Wealth Management (PWM) business reported ₹ 259 crore of revenue in Q3FY23, same as that of the year ago period.


Institutional Business:

The company’s institutional business includes Institutional Equity and Issuer Services and Advisory (Investment Banking) businesses.

Institutional Equities revenue during the quarter decreased by 32% YoY to ₹47 crore, primarily due decline in Cash ADTOs and muted capital markets.

The Issuer Services and Advisory business revenue stood at ~ ₹ 48 crore in Q3FY23, down 56% YoY due to reduction in number of capital market deals. The company has a strong IPO pipeline of amount over ₹ 41,100 crore across 21 deals, with 16 deals where the amount is yet to be decided. If the market remains conducive, these deals could be executed quickly as most of these are in ready-to-launch stage.