ICICI Securities, a key player within the ICICI Group, has announced robust financial results for the third quarter ending December 2023, showcasing impressive growth across various segments. The company reported a substantial 66% surge in net profit, reaching Rs 466 crore. This remarkable performance is underscored by an overall revenue increase of 50% year on year, totaling Rs 1.323 crore.
In the retail equities and allied sector, the company demonstrated noteworthy strength, with revenue reaching Rs 755 crore – a 50% YoY increase. Within this, equity revenue witnessed a remarkable 60% YoY growth, reaching Rs 278 crore. Derivative revenue also experienced a solid uptick, growing by 22% YoY to Rs 124 crore. The distribution income saw a steady 5% YoY growth, reaching Rs 175 crore, while Private Wealth Management (PWM) revenue marked an impressive 56% YoY increase, standing at Rs 403 crore.
On the institutional side, ICICI Securities excelled with Issuer Services and Advisory revenue escalating to Rs 973 crore, reflecting an outstanding 102% YoY increase. Institutional Equity & Allied Revenue also reached a noteworthy Rs 903 crore, indicating a substantial 94% YoY growth. Mutual fund (MF) and other distribution revenue experienced healthy growth at 14% and 16% YoY, respectively. Loans distributed for Q3FY24 reached Rs 2,170 crore, marking an impressive 116% YoY increase.
As of December 31, 2023, ICICI Direct’s total client assets reached a substantial figure of approximately 7 lakh crore, showcasing an impressive 16% YoY increase. The PWM Assets Under Management (AUM) also reflected a robust growth of 25% YoY, reaching 4 lakh crore. Vijay Chandok, Managing Director and CEO of ICICI Securities, commented on these results, emphasizing the company’s commitment to strategic growth initiatives.
Chandok stated, “We continue to grow with our focus on the acquisition of quality clients, gaining market share in revenue-generating segments, growing our distribution business, enhancing customer experience, and continued investment in enhancing franchise as well as technology. Overall, we strongly believe that the medium to long-term story for the industry remains intact.”
The growth in distribution business, coupled with an unwavering commitment to enhancing customer experience, underscores the company’s dedication to client satisfaction and long-term value creation.
Investments in technology are highlighted as a pivotal element of ICICI Securities’ strategy, acknowledging the importance of staying at the forefront of technological advancements in the financial sector. The impressive increase in client assets and AUM further attests to the company’s ability to attract and retain clients, reflecting positively on its brand strength and market positioning.
In conclusion, ICICI Securities’ Q3 financial results paint a picture of a company in robust health, achieving significant growth across its diverse business segments. The strategic focus on quality, market share, distribution, and technology bodes well for its sustained success, reinforcing its position as a key player in the financial industry.