ICICI Securities Ltd has reported financial results for the period ended June 30, 2020.
Financial Results (Q1 FY 2020-21) - QoQ Comparison
The company has reported total income of Rs.546.40 crores during the period ended June 30, 2020 as compared to Rs.481.94 crores during the period ended March 31, 2020.
The company has posted net profit / (loss) of Rs.193.08 crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.155.88 crores for the period ended March 31, 2020.
The company has reported EPS of Rs.5.98 for the period ended June 30, 2020 as compared to Rs.4.83 for the period ended March 31, 2020.
|Total Income||₹ 546.40 crs||₹ 481.94 crs|| 13.38%|
|Net Profit||₹ 193.08 crs||₹ 155.88 crs|| 23.86%|
|EPS||₹ 5.98||₹ 4.83|| 23.81%|
Financial Results (Q1 FY 2020-21) - YoY Comparison
The company has reported total income of Rs.546.40 crores during the period ended June 30, 2020 as compared to Rs.402.11 crores during the period ended June 30, 2019.
The company has posted net profit / (loss) of Rs.193.08 crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.113.77 crores for the period ended June 30, 2019.
The company has reported EPS of Rs.5.98 for the period ended June 30, 2020 as compared to Rs.3.53 for the period ended June 30, 2019.
|Total Income||₹ 546.40 crs||₹ 402.11 crs|| 35.88%|
|Net Profit||₹ 193.08 crs||₹ 113.77 crs|| 69.71%|
|EPS||₹ 5.98||₹ 3.53|| 69.41%|
I-Sec has a client base of 4.9 million, of which about over 80,000 were added during the quarter. I-Sec has moved to completely digital account opening process from mid-April and the run rate for new account opening has been steadily increasing with the June 2020 numbers being higher than June 2019 numbers.
The company has over 1.5 million active clients (those having traded in the last 12 months) and over 1.1 million NSE active clients (those having traded on the NSE in the last 12 months), up 15% and 27% YoY respectively.
In Q1FY2021, I-Sec expanded its equity market share by 260 bps YoY to 10.7%, with its equity ADTO (average daily turnover) increasing by 115% vs 62% for the market. Similarly, its derivatives market share went up 150 bps YoY to 8.9%, and I-Sec derivative ADTO rose 32% vs 9% for the market. During the quarter, I-Sec made available the third party derivatives strategy platform Sensibull on icicidirect.
During the quarter, our Equities and Allied Business, which comprises of retail equity, institutional equity, lending towards ESOP (Employee Stock Option Plans) & MTF (Margin Trade Funding), and Prime subscription fees, rose 62% on-year to Rs. 389 crore. The Retail Equities and Allied Business revenue rose 70% to Rs. 354 crore vs Rs. 209 crore in Q1FY20. ESOP & MTF interest income rose 32% year-on-year to Rs. 23 crore in Q1FY21 and the lending book size stood at ~Rs. 1,500 crore as on 30th June 2020, against ~ Rs. 580 crore on 31st March 2020. Prime subscription income grew 31% sequentially to over Rs. 10 crore during the same period. The company continues to receive encouraging response to Prime, its annual subscription based plan that provides a package of privilege pricing, exclusive research, and higher eATM (payout within 30 mins of selling stocks) limits per day. Currently there are over 3.75 lakh Prime subscribers.
Institutional equities revenue during the quarter rose by 14% on-year to Rs. 35 crore due to increased traction in block deals.
Distribution revenue stood at Rs. 80 crore in Q1FY21 down 19% against Q1FY20.
I-Sec is India's second largest non-bank MF distributor by revenue and assets with a 4.5% revenue market share (based on FY20 revenue). It earned Rs. 49 crore of revenue through MF distribution during the quarter, down 12% from the year ago period. The quarter saw weakness in the overall MF industry with redemption pressures persisting in debt funds. I-Sec however improved its net flows and market share in equity funds.
Income from distribution of non-MF products like loans, fixed income products, corporate bonds and deposits, insurance, bank FDs, AIF, PMS, SGBs, NPS, etc., were also impacted during the quarter as a significant portion of these business are contract based and the COVID-19 induced lockdown effected closure of their sales. Non-MF revenue declined 25% in Q1FY21 to Rs. 29 crore.
The company has a network of 171 ICICIdirect branches (vs 192 in Q1FY20) and a nationwide network of business partners, consisting of sub-brokers, authorized persons, IFAs & IAs, which grew by 62% to 12,100+. New customer acquisition through the business partner during the quarter rose 266% year-on-year.
I-Sec's Private Wealth Management (PWM) business reported Rs. 77 crore of revenue in Q1FY21 up 36% on-year. The PWM business is a home-grown franchise set up to service affluent customers. It serves ~34,000 clients, of which ~1,600 were added during the quarter, with an asset base of ~Rs. 1 L crore, up 20% sequentially.
Our Issuer Services and Advisory business, (Investment Banking) revenue stood at Rs. 22 crore in Q1FY21, up 34% on-year. The company has strong IPO pipeline (as per SEBI filling) of 13 deals amounting to over Rs. 38,200 crore.
Mr. Vijay Chandok, Managing Director and Chief Executive Officer, said, "We had an eventful quarter in which we saw increased market participation by all players -retail, HNIs and institutional, resulting in strong growth in our core equities, as well as wealth and investment banking business. Our distribution business was however soft as sentiments remained weak in debt funds and SIP inflows slowed down with investors preferring to conserve cash during these uncertain times.
"The quarter tested the resilient nature of our business model. We remain committed to transform ourselves into a financial supermarket of choice for our customers to meet their life stage needs, delivering financial products and solutions digitally. In the context of current pandemic, our stated strategy is all the more relevant with a special focus to increase digitisation, lower cost, enhance investment in technology, and fortifying our talent pool. Our business model is characterized by low credit risk and negligible inventory or supply chain risk. In the current environment, investors are looking at sound advice, trusted partner, and a reliable platform, and I-Sec scores high on all these. We will soon be adding the option of investing in US securities on icicidirect."
Shares of ICICI Securities Ltd was last trading in BSE at Rs.530 as compared to the previous close of Rs. 532.25. The total number of shares traded during the day was 19894 in over 958 trades.
The stock hit an intraday high of Rs. 538.55 and intraday low of 527.15. The net turnover during the day was Rs. 10601647.