ICICI Securities Q3 net profit surges 42% YoY on strong customer addition

Stockbroker ICICI Securities on January 18 reported a 42 percent year-on-year growth in net profit to Rs. 380 crore for the quarter ended December aided by strong user addition in the quarter and improvement in wealth management business.

The company’s revenues for the quarter ended December rose 52 percent on-year to Rs. 942 crore as the company added 680,000 new users, a growth of 386 percent on-year.

“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,” said Vijay Chandok, managing director and chief executive officer at ICICI Securities.

The equities and allied services, which contribute more than 50 percent of revenues, jumped 36 percent on-year to Rs. 596 crore in the reported quarter, ICICI Securities said. The private wealth management saw its revenues rise 128 percent on-year to Rs. 259 crore in the quarter ended December.

ICICI Securities distribution income in the quarter rose 55 percent on-year to Rs. 164 crore while its issuer services saw sales rise 372 percent on-year to Rs. 111 crore aided by the boom in the primary market.

The company said that the total clients’ assets stood at Rs. 5.6 lakh crore at the end of the December quarter as against Rs. 3.4 lakh crore in the year-ago quarter. The company’s total client base rose to 7 million in the reported quarter, of which 3 million were active.

Shares of ICICI Securities were up 0.5 percent at Rs. 827.2 on the National Stock Exchange.