ICICI Securities, the broking and investment banking arm of ICICI Bank, on Saturday reported a 91 per cent year-on-year jump in net profit to Rs 1.59 billion for the quarter ended March 2018 on the back of 35 per cent increase in revenues to Rs 5.15 billion.
ICICI Securities full-year (2017-18) profit rose 65 per cent year-on-year to Rs 5.58 billion thanks to a 32 per cent increase in revenues to Rs 18.59 billion.
During the year, the company reported decent growth across business verticals, such as broking, mutual fund (MF) distribution and investment banking.
Broking revenues rose 32 per cent year-on-year to Rs 10.24 billion in 2017-18. It saw its market share in the equity broking segment improve by 120 basis points to nine per cent. The company, which operates ICICIDirect.com platform, added 460,000 new clients, taking the total number of operational accounts to four million.
The distribution revenue—nearly two thirds comes from selling MF products—grew 34 per cent year-on-year to Rs 4.68 billion in 2017-18. Record-breaking equity mobilisation in the domestic market, helped ICICI Securities’ investment banking revenues increase 20 per cent to Rs 1.43 billion for 2017-18.
“This fiscal the company has registered a robust performance in all its business segments. ICICI Securities is well positioned to take advantage of the macroeconomic trends of increasing financialisation and equitisation in household savings,” said Shilpa Kumar, Managing Director and Chief Executive Officer, ICICI Securities.
The newly-listed company recommended a final dividend of Rs 3.9 per share, taking the total dividend for 2017-18 to Rs 9.4 per share. Experts say the good results will help shares of ICICI Securities recoup some of the losses. The stock is currently down about 19 per cent to Rs 423 over to its initial public offering (IPO)—which came in end March—price of Rs 520.