ICICI Securities (ISEC) Q4 21/22 earnings summary

Executive summary

• FY2022 consolidated revenue rose 33.0% YoY to ₹34,384.8 million; PAT increased 29.5% to ₹13,826.0 million.

• Growth broadened across business lines, led by private wealth and issuer/advisory; broking’s share of revenue declined to 45% from 58% in FY2021.

• Client base reached 7.56 million, with ~3.4 million active clients, up 77% YoY; total client assets were ₹5.64 trillion.

• Strategy centers on a diversified, digital lifecycle marketplace, using analytics, omnichannel delivery and expanded products to deepen customer relationships.

Financial highlights

• Consolidated revenue ₹34,384.8 million, up 33.0%; PBT ₹18,527.6 million, up 29.5%; PAT ₹13,826.0 million, up 29.5% YoY.

• Basic EPS was ₹42.86 and diluted EPS ₹42.69, versus ₹33.14 and ₹33.08, respectively, in FY2021.

• Total expenses rose 37.2% to ₹15,857.2 million, including finance costs of ₹2,736.8 million versus ₹1,072.8 million in FY2021.

• Interest income more than doubled to ₹7,185.1 million, supported by higher MTF/ESOP funding and exchange-margin fixed deposits; brokerage income increased 3.2% to ₹15,525.9 million.

• Consolidated total assets increased 67% to ₹136.46 billion; loans rose to ₹68.57 billion from ₹29.01 billion, primarily reflecting MTF and ESOP funding.

Outlook and guidance

• Priorities include continued technology investment, stronger platform resilience and cybersecurity, broader product diversification, and monetising customer relationships across lifecycle needs.

• Near-term market volatility is expected amid geopolitical tensions, inflation and monetary tightening; domestic retail inflows and corporate profitability were cited as supports.

• Issuer/advisory pipeline remained strong, with 15 DRHPs filed with SEBI as of April 8, 2022; IPO, QIP, rights, OFS and advisory activity were expected to support growth.

• The outlook is underpinned by rising financialisation of savings, digital adoption, growing affluence and new customer cohorts, including ~15 million young Indians entering earning age annually.