Result Analysis: ICICI Securities Ltd. Result Update Q3FY22
Particulars (In Rs. Cr.) Q3FY22 Q2FY22 Q3FY21 QoQ % YoY%
Revenue from Operations 941.64 856.37 620.11 9.96% 51.85%
Other Income 0.28 0.19 -0.14
Total Income 941.92 856.56 619.97 9.97% 51.93%
Employee Expenses 172.91 168.25 129.74 2.77% 33.27%
Other Expenses (incl. Fees end comm. expense) 160.15 149.05 94.84 7.45% 68.86%
Provisions & Write Offs 0.34 -4.51 -1.47
EBITDA 608.24 543.58 397 11.90% 53.21%
Finance Cost 82.72 58.09 25.32 42.40% 226.70%
Depreciation 15.97 14.76 13.76 8.20% 16.06%
Total Expenditure 432.09 385.64 262.19 12.04% 64.80%
Tax 129.48 119.68 90.76 8.19% 42.66%
Profit After Tax 380.35 351.24 267.02 8.29% 42.44%
EBITDA Margin (Change in bps) 64.59% 63.47% 64.02% 112 57.3
PAT Margin (Change in bps) 40.38% 41.01% 43.07% -63 -269.0
Segment Revenue Q3FY22 Q2FY22 Q3FY21 QoQ % YoY%
Interest income 205 170 89 20.39% 129.26%
Brokerage income 392 393 362 -0.24% 8.21%
Income from services 331 273 159 21.09% 108.13%
Net gain on fair value changes 14 19.92 9 -29.72% 55.56%

Result Highlight: 

  • ICICI Securities Consolidated Revenue rose 10% QoQ and 52% YoY to Rs 941.6 crore.

  • Despite increase of 64.8% YoY increase in total expenditure, net profit rose 42.4% YoY to Rs 380 crore for the December quarter compared with Rs 267 crore in the same quarter last year.

  • The cost /income ratio inched up by 100 basis points sequentially to 46%, led by rise in employee cost/other expenses (related to marketing cost and technology investments).

  • In Q3FY22, Equities and Allied Business, which comprises retail equity, institutional equity, lending towards ESOP (Employee Stock Option Plans) & MTF (Margin Trade Funding), Prime & NEO subscription fees and other charges, rose 36% YoY to Rs. 596 crore.

  • Distribution income was at Rs 164 crore, up 55% YoY. ICICI Securities’ MF revenues grew by 54% YoY to Rs. 97 crores in Q3FY22. On the back of SIP count rising 44% YoY to 1 million in December 2021, the company’s market share in SIP flows has expanded to 3.9% in Q3FY22 from 3.7% in Q3FY21. Other financial Product distribution revenue up 55% YoY to Rs. 67 Crore

  • I-Sec’s Private Wealth Management (PWM) business reported Rs. 259 crores of revenue in Q3FY22 up 128% on-year.

  • Issuer Services and Advisory business (Investment Banking) revenue stood at Rs, 111 crores in Q3FY22, up 372% on-year. ICICI Securities is ranked #1 in IPO/ FPO/ InvIT/ ReIT issuance (by amount issued). The company has strong IPO pipeline of 63 deals amounting to over ₹ 850 billion.

  • Has a client base of 70 lakh of which 6.8 lakh clients added in Q3FY22; up by over 386% YoY; highest ever quarterly addition. Most of them came from digital sourcing with 81% coming from non ICICI bank channels

  • The company has 3 million active clients and 2.7 million NSE active clients, up 89% and 114% YoY respectively.

Management commentary: 

Commenting on the Q3 performance, Mr. Vijay Chandok, Managing Director and Chief Executive Officer, said: “We are happy to report an encouraging operational and financial performance. Our broad-based and digital-led customer acquisition engine continues to break previous quarterly records. As we continue our journey of transitioning to a digitally integrated financial marketplace, we are adopting ‘mass personalisation’ approach. Towards this we are investing in next gen skillsets, tools, platforms and capabilities, through which we are able to offer highly customized solutions matching an investor’s risk appetite and goals. Although we have a long way to go, early success is already visible through metrics like improvement in cross sell ratios (1.75 in Q3FY22 vs 1.6 in Q3FY20) and clients with two or more products (1.12 million in Q3FY22 vs 0.91 million in Q3FY20).

Concall Takeaways:

  • Revenue mix is more tilted towards cash compared to F&O.
  • In MTF and ESOP, 80% contribution is revenue come from MTF.
  • RPU is in range of 8000-10000, for new customer RPU is lower compare to old customer.
  • Company adding Non – broking revenue so focus should not be only on broking revenue.
  • Derivatives volume market share in Dec stood at 3%, this has stabilized post implementing last stage of margin norms in Sep 2021.
  • Decline in Equity market share from 8.8% to 8.3% sequentially majorly coming from institutional side. Efforts would be to improve equity market share. In Demat account market share is 6%
  • Sequentially there was degrowth in insurance business. Will see Sequentially uptick in upcoming quarter.


ICCI Securities reported strong revenue growth in December quarter led by strong growth across all businesses except broking business. The company’s combined (retail + institutional) market share decline to 8.3% in the cash segment however efforts would be there to improve market share. The total customers having opted for NEO is 1.8 Lac. The Non – Broking business of the company is gaining traction. It is India’s second largest non-bank MF distributor by revenue and assets. Tie-up with HDFC Life and the launch of new loan products, the traction in distribution income is expected to remain strong for the company. The C-I Ratio of the company have increased to 46%. However, with the efforts directed towards controlling fixed costs the management expects the C-I ratio to decline to sub-40% over the medium term which would add the Profitability. At the CMP of Rs. 792, ICICI Securities is trading at PE multiple of 18.6x.  Valuing the company at 15.8x FY23E EPS, we recommend buy on ICICI Securities at CMP of Rs. 792 for the Target Price of Rs.930.

Source: BSE, Bloomberg Quint, EW Research

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