ICICI Securities rose 0.88% to Rs 428.3 after consolidated net profit rose 35.64% to Rs 137.23 crore on 4.42% increase in total income to Rs 422.67 crore in Q3 December 2019 over Q3 December 2018.Consolidated profit before tax (PBT) jumped 17.10% to Rs 185.10 crore in Q3 December 2019 as against Rs 158.07 crore in Q3 December 2018, supported by growth in retail equities and allied business.
Effective tax for Q3 December 2019 was at Rs 47.87 crore as against Rs 48.98 crore in Q2 September 2019 and Rs 56.90 crore in Q3 December 2018.
Annually, retail equities and allied revenue went up 5% at Rs 228 crore in Q3 December 2019 compared with Q3 December 2018 and blended equity broking market share also witnessed an improvement of 80 bps to 8.9% in Q3 December 2019 over Q3 December 2018. About 1.4 million active clients currently work with the company and 94,000 new clients were added during the quarter. The firm's return on equity (RoE) stood at 51%.
During the quarter, distribution revenue stood at Rs 103 crore in Q3 December 2019, down by 4% as against Q3 December 2018 due to the anticipated reduction arising due to changes in regulations pertaining to mutual fund distribution. Sequentially, distribution revenue was down 3%.
The company has a network of 178 ICICI direct branches (vs 198 in Q3 December 2018) and a nationwide network of business partners, consisting of sub-brokers, authorized persons, IFAs & IAs, which grew by a third to 8,600+.
Commenting on the Q3 performance, Vijay Chandok, the managing director and chief executive officer of ICICI Securities, said that, "We continued to focus on executing our strategy of offering appropriate products and solutions to varied clientele across a spectrum of needs. We are continuously working towards building for the future with client interest at the center and a keen focus on using digitization to contain cost, enhance productivity and efficiency."
"During the quarter, we saw an uptick in retail participation due to large, mid, and small caps participating in the rally, and if the momentum in the broader market sustains, it will be beneficial for a franchise like ours."
"In the current environment, where investors are looking for trust, transparency, and safety especially in the light of recent market developments, we believe we are well positioned to capitalize on it. At I-Sec, clients' funds and securities remain theirs and accessible by them at all points in time."
"In light of demand for comprehensive solutions by customers, we have been and would continue to invent in new product and services, thereby, broad-basing our revenue pool. Many of our recent initiatives have been towards this objective and will be unveiled in the coming months."
"As a virtual financial supermarket, our continuing endeavor is to meet all the three need sets of our customers - wealth management and investments, protection of life & assets, and their borrowing needs. Digital is the centre piece to this strategy and we are working with fintechs and startups to launch winning solutions."
ICICI Securities offers a range of financial services including brokerage, financial product distribution and investment banking and focuses on both retail and institutional clients.
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