ICICI Securities (ISEC) Q4 20/21 earnings summary

Executive summary

• FY2021 consolidated revenue rose 49.9% to ₹25,861.7 million and PAT increased 97.0% to ₹10,677.2 million, supported by strong activity across retail equity, wealth management and advisory.

• Digital onboarding, open architecture and new products accelerated customer growth; client assets rose 85% to ₹3.8 trillion and active clients reached 1.91 million.

Financial highlights

• Consolidated total income was ₹25,861.7 million, up 49.9% YoY; total expenses rose 18.9% to ₹11,553.9 million.

• Consolidated PBT increased 90.0% to ₹14,307.8 million; PAT rose 97.0% to ₹10,677.2 million.

• Brokerage income grew 58.8% to ₹15,045.2 million; income from services rose 33.4% to ₹6,960.7 million.

• Net profit margin expanded to 41% from 31%; EPS increased to ₹33.14 from ₹16.83.

Outlook and guidance

• Strategy prioritises scaling client acquisition, monetising client value, customer experience, digital agility and cost efficiency; FY2021 sourcing exceeded 100,000 customers per month by year-end.

• The IPO pipeline included 12 DRHP filings with SEBI as of April 9, 2021; IPO, QIP, rights, OFS and advisory activity was expected to remain robust in FY2022.

• Planned investments in technology, people, brand, analytics and digital properties aim to support personalised cross-selling and a broader financial-products marketplace.