ICICI Securities (ISEC) Q4 18/19 earnings summary

Executive summary

• FY2019 was the second-best financial year, despite a strong FY2018 base and tougher equity-market, regulatory and primary-issuance conditions.

• Consolidated revenue was ₹17,270.2 million and PAT ₹4,907.3 million; operational accounts reached 4.4 million and active clients 1.3 million.

• Active client growth, mutual fund AUM expansion and digital product launches supported the franchise; the asset-light model delivered 52% ROE.

Financial highlights

• Consolidated revenue declined to ₹17,270.2 million from ₹18,610.1 million YoY; PAT fell to ₹4,907.3 million from ₹5,534.7 million.

• Total expenses decreased 4% to ₹9,697.9 million; PBT declined 11% to ₹7,572.3 million.

• Consolidated EPS was ₹15.23 versus ₹17.18; total comprehensive income was ₹4,881.4 million versus ₹5,518.6 million.

• Average daily turnover rose to ₹533 billion from ₹372 billion; mutual fund average AUM reached ₹347 billion versus ₹302 billion.

Outlook and guidance

• FY2020 priorities include digital agility, customer acquisition and engagement, personalized offerings, product innovation and greater process efficiency.

• T20 onboarding, fintech collaboration and automation are intended to improve acquisition speed, productivity and customer experience.

• Growth opportunities cited include financialisation of savings, technology adoption, wealth management expansion and a stronger IPO pipeline in a more stable market.