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ICICI Securities Ltd.

BSE: 541179 Sector: Financials
NSE: ISEC ISIN Code: INE763G01038
BSE 00:00 | 26 Nov 761.10 -14.05
(-1.81%)
OPEN

774.00

HIGH

786.20

LOW

752.40

NSE 00:00 | 26 Nov 759.05 -16.35
(-2.11%)
OPEN

768.40

HIGH

787.00

LOW

751.00

OPEN 774.00
PREVIOUS CLOSE 775.15
VOLUME 13551
52-Week high 895.60
52-Week low 357.00
P/E 19.55
Mkt Cap.(Rs cr) 24,558
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 774.00
CLOSE 775.15
VOLUME 13551
52-Week high 895.60
52-Week low 357.00
P/E 19.55
Mkt Cap.(Rs cr) 24,558
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

ICICI Securities Ltd. (ISEC) - Chairman Speech

Company chairman speech

Mixing Maturity and Agility to Deliver Value

Your Company has immense reserves of inherent strengths to capitalise on theopportunities. The biggest amongst these is its ability to constantly reinvent itself toremain relevant for the customer's changing and evolving needs.

Vinod Kumar Dhall

Chairman

Dear Shareholders

It has been an exceptionally trying time for the world including for our country. TheCOVID-19 induced pandemic a typical black swan event that swept across the world hasravaged the global economy at a scale never seen before. The post-pandemic world will inmany ways be unlike the world before.

Seeing the big picture unfold

Mankind however is resilient enough to confront new challenges and adjust to developingsituations. Significant changes in human history have evolved in response to major crises.For instance the American civil war was followed by the end of slavery. The World War IIwas followed by the creation of peace keeping institutions like the United Nations whichbecame an influential organisation for preventing the recurrence of such large scaletransnational conflicts. Similarly the global financial crisis of mid to late 2000s ledto tighter banking regulations. We see such examples even at home. In times of majorcrises the system has responded forcefully. Food shortage during the early decades ofindependence led to the green revolution transforming the farm sector and ultimatelymaking India a net exporter of food products from being an importer earlier. The 1992stock market scam gave birth to electronic trading and better regulation. The balance ofpayments crisis in 1991 led to the liberalisation of the Indian economy. These tectonicreforms short-circuited years of incremental change.

Swift response by governments globally

When the global economy went into recession in 2020 due to the COVID-19 impact centralbanks embarked on record monetary stimuli and governments across the globe adopted acounter-cyclical fiscal policies by embarking on unprecedented fiscal spending to pulltheir respective economies out of the recession caused by the once-in-a-century crisis;these measures met with visible success. Growth recovered in the second half of CalendarYear 2020 and high frequency economic indicators such as global Purchasing Managers' Index(PMI) showed that the momentum in economic recovery continues.

At home too the Indian government took series of measures to minimise the impact ofthe pandemic and to kickstart the economy. Measures like the stimulus package theAtmanirbhar Bharat campaign liberalisation of FDI rules focused industry-specificincentives and financial and food assistance to the needy helped to cushion the direeffects of the pandemic. Steps like support to MSMEs permission for commercial miningagri reforms etc. are expected to further help in achieving the broader goals of economicgrowth and self-reliance. Gradually after the government eased covid related restrictionson mobility economic activity has started limping back and we closed the year withQ4FY2021 real GDP growth of 1.6% which was the strongest quarter of the year. The IMFexpects India to be the fastest growing economy in the world during CY2021 at 12.5% GDPgrowth. Structural reforms and pro-growth policies of the Government have the potential toextend the growth momentum for India beyond CY2021. The global GDP too is expected to growby 6% in CY2021 after contracting by 3.3% in CY2020. Emerging economies are expected togrow faster at 6.7% than advanced economies at 5.1%.

The Indian equity markets had an eventful year: first the bourses dipped into bearterritory but soon reversed to a spectacular bull run with the benchmark index NIFTY50rallying 71% during FY2021. The rally was secular and broad-based with small and midcapsoutperforming headline indices. This was on the back of mirroring global markets as wellas the expansionary FY2022 Union Budget which incorporated a counter-cyclical fiscalpolicy with focus on reviving growth. The year saw record number (up ~3x Y-o-Y) of newdemat account holders entering the market. There was significant surge in trading volumes(average daily turnover almost doubled) led by historic levels of volatility arising outof the pandemic lower interest rate regime in the market and aided by the work-from-homeenvironment. Demand for retail financial products like loans fixed income productscorporate bonds deposits insurance etc. was impacted in the first half of the financialyear as these businesses are largely contact based and got affected by the COVID-19related restrictions with business improving only in the second half of the financialyear. While direct equity investments gained popularity as indicated by the number of newdemat accounts opened the managed products saw muted investor interest. Even as MutualFund Investor accounts registered a growth of 10% to reach 99 Million accounts in FY2021average monthly SIP inflows saw a dip of 4%.

Your Company has been a beneficiary of the broader market trend playing out in the formof formalisation of savings and huge retail interest in equity that is reflected in itsstellar FY2021 financial and operational performance.

Our value-creation opportunity

Your Company has been a beneficiary of the broader market trend playing out in the formof formalisation of savings and huge retail interest in equity that is reflected in itsstellar FY2021 financial and operational performance. Going forward we see a long runwayfor growth as under almost all financial parameters like penetration of direct or managedequity ratio of physical vs. financial assets etc. we have a long way to catch up withthe rest of the world. India has a large youth population joining the workforce everyyear. The younger millennials and Gen Z are digital natives. They think act spend orinvest differently.

Their objectives and aspirations are different from those of the previous generations.And they also need to be served differently. This is one big area of focus for yourCompany as it readies the next generation of tools and features to cater to thesecustomers. Your Company has immense reserves of inherent strengths to capitalise on theopportunities. The biggest amongst these is its ability to constantly reinvent itself toremain relevant for the customer's changing and evolving needs. The Company has constantlyinnovated and added products features and services to its arsenal many of which havegone on to become industry standards.

Your Company partnered with IIT-Kanpur to successfully develop ground-up a completelyindigenized portable and affordable ventilator.

Compassion for the Community

Reflecting your Company's deep commitment to social responsibility during the year itundertook various community initiatives in the areas of skills development sustainablelivelihood creation of job opportunities healthcare empowering of women and seniorcitizens' welfare. In healthcare we humbly contributed Rs 100 Million towards The PrimeMinister's Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund in orderto support the Government in its fight against the pandemic. In another initiative whichmay have a long term impact in making the country self-sustained in medical devices yourCompany partnered with IIT-Kanpur to successfully develop ground-up a completelyindigenized portable and affordable ventilator. With respect to creation of new jobs andbusinesses besides partnering with the ICICI Foundation for Inclusive Growth (ICICIFoundation) in its job-oriented skill training we initiated a unique programme inpartnership with the N.S. Raghavan Centre of Entrepreneurial Learning (NSRCEL) at theIndian Institute of Management Bangalore (IIMB) to provide assistance to 10 fintechstartups as we believe they have the potential to quickly generate large scale employment.Through this initiative around 150 direct and 700 indirect jobs have been created. Wehave also tied up with an agency to train people in eldercare meeting the twin needs offulfilling a demand gap in shortage of trained care givers and employment generation. Forwomen empowerment we are engaged with the World Wildlife Fund's (WWF) Hameri programmeunder which women around the Jim Corbett National Park area in Uttarakhand are trained incommunity-based food processing and handicraft enterprises. This also reduces theirdependency on the forest thus aiding environment conservation. The Company inassociation with HelpAge India has taken up the project to set up Model Old Age Homeswith Active Ageing Concept across 3 cities of Gurdaspur in Punjab Cuddalore in TamilNadu and Shey Village in Leh Ladakh. Various activities and initiatives have beenundertaken in these centres for the overall wellness of the elderly.

Your Company has joined hands with the Society for Innovation and Entrepreneurship(SINE) a not-for-profit Technology Business Incubator (TBI) at IIT Bombay to support acouple of projects that have potential large scale social impact. The first project is inthe area of Integrated Water Technology (IWT) for treating sewage/dirty water and reuse infarming gardening etc. The second project is in baggage screening using ArtificialIntelligence for enhancing security in public places such as metro/railway stationsairports etc.

In conclusion

I would like to reiterate that ICICI Securities Limited is 26-year-old company but yeta young enterprise in mindset. It works with the maturity of an established firm andagility of a startup. As a consumer-centric organisation while we are proud of ourlegacy we do not rest on our laurels. We have kept augmenting customer trust refreshedour talent invested substantially in technology maintained high level of corporategovernance and constantly endeavored to give back to the society. We continue to investin people processes and technology towards greater stakeholder value creation. I takethis opportunity to thank all of you - and our customers partners associates employeescommunities and the regulators - for the continued support and trust by all in ourlong-term story and solicit your continued support going forward. And finally along withall of you we look forward to a brighter stronger post-covid future for our country andits people.

Regards

Vinod Kumar Dhall

Chairman

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