May 28, 2024

ICICI Securities Q4 FY23 results

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Mumbai, Wednesday, April 21, 2023 – ICICI Securities, a part of the ICICI Group and India’s leading wealth-tech firm, meeting complete financial lifecycle needs of its customers across investments, insurance and loan needs, today declared its financial and operational performance for the Financial and Quarter ending 31st March 2023 (FY23 and Q4FY22).

Despite a challenging external environment in Q4FY23, the company reported a 5% growth in Retail revenue to ₹ 778 crore, against the corresponding quarter last year. Overall revenue fell 1% YoY to ₹ 885 crore due to weakness in the Equity Capital Market (ECM).

Within the Retail business, Equities and Allied revenue for the quarter came in at ₹ 492 crore, down 6% YoY, Distribution income was ₹193 crore, up 14% YoY, and Private Wealth Management (PWM) revenue was ₹255 crore, up 1% YoY.

Profit After Tax (PAT) for the quarter stood at ₹ 263 crore, down 23% YoY. This was on account of increase in finance cost which was only partially passed on to the customers, and continued investments towards technology and other franchise value enhancing initiatives. During the quarter, the company recognized a one-time provision of ₹ 16 crores pertaining to margin penalties passed on to clients from October ‘21 to November ’22.

The company declared a final dividend of ₹9.25/ share, taking the full year dividend to ₹19/share.

The company continued to diversify its revenue base, thereby reducing dependance on cash broking, which by nature is cyclical. During the quarter, proportion of cash broking in overall revenue decreased to 20% from 50%+ few years back. Derivatives revenue now contribute 15%, Allied revenue 26%, and Distribution business 22% to the company’s overall revenue. All these are relatively less cyclical and market dependent.

In Q4FY23, the company strengthened its marketshare across several parameters. Retail cash equity market share improved from 10.0% to 11.0% YoY, and Retail derivative market share improved from 3.3% to 3.6% YoY on the back of initiatives like introduction of new age digital tools and brokerage plans targeted at derivatives traders. Commodity market share, where the company is a relatively new entrant, rose from 4.1% to 6.1% YoY. Mutual Find Market share in SIP flow at 3.1%.

During the quarter, the company added 3.7 lakh clients added during the quarter, taking its overall customer base past 90 lakh mark. As on 31st March 2023, total client assets on icicidirect.com stood at ~₹5.9 Lakh crore, up 4% YoY, of which PWM AUM stood at ₹3.2 Lakh crore, up 13% YoY.

Commenting on the results and financial performance, Mr. Vijay Chandok, Managing Director and CEO of ICICI Securities said: With continued diversification taking root in the company’s business model, we are becoming more of a structural play on the India opportunity. As we look back and look ahead, we see that we are on track to achieve our stated aspiration. We strongly believe that the medium to long term story for the industry remains intact and we are well placed strategically to harness this opportunity by making relevant investments in key focus areas viz. F&O, distribution of loan and insurance products, and wealth management.

For the full year, revenue stood at ₹ 3,425 crore, flat as in FY22  and PAT was ₹1,118 crore, down 19% YoY.