ICICI Securities reports 4 pc growth in Q3 revenue growth at Rs 423 crore

ICICI Securities on Monday reported consolidated revenue of Rs 423 crore in the third quarter of the current financial year (Q3 FY20) against Rs 405 crore in Q3 FY19, up 4 per cent aided by growth in retail equities and allied business.

The consolidated profit after tax stood at Rs 137 crore versus Rs 101 crore, up 36 per cent on account of growth in revenue, reduction in expenses and changes in statutory tax rates.

The return on equity remained robust at 51 per cent. For the nine-month period, revenue stood at Rs 1,243 crore, down 4 per cent year-on-year while profit after tax stood at Rs 386 crore, up 5 per cent.

ICICI Securities has 4.7 million operational accounts of which about 94,000 were added during the quarter. The company has 1.4 million active clients (those having traded in the last 12 months) and one million NSE active clients (those having traded on the NSE in the last 12 months).

During the quarter, the company's blended equity market share grew 80 basis points on-year to 8.9 per cent.

The ICICI Bank-led customer acquisition arrangement continues to ramp up well with client activation rates further increasing to 58 per cent versus 44 per cent sequentially and almost double from the same quarter last year.

The pace of tab-based account opening (T20) also picked up with a monthly run rate of 11,500 in Q3 FY20 versus 9,500 in Q2 FY20.

"During the quarter, we saw an uptick in retail participation due to large, mid and small caps participating in the rally. If the momentum in the broader market sustains, it will be beneficial for a franchise like ours," said Managing Director and CEO Vijay Chandok.

As a virtual financial supermarket, he said, the company's continuing endeavour is to meet all the three need sets of customers -- wealth management and investments, protection of life and assets, and their borrowing needs.

"Digital is the centrepiece to this strategy and we are working with fintechs and startups to launch winning solutions," said Chandok.

ICICI Securities handled seven investment banking deals in Q3 FY20 and has an IPO pipeline of seven deals amounting to over Rs 8,600 crore.