ICICI Securities (ISEC) Q4 22/23 earnings summary

Executive summary

• FY2023 consolidated revenue was ₹34,254.8 million, down 0.4% YoY; PAT fell 19.2% to ₹11,176.3 million as higher funding costs and weak broking and advisory activity weighed on earnings.

• Revenue mix diversified: broking’s share declined from 45% in FY2022 to 37% in FY2023, while distribution and wealth expanded; client assets reached ₹5.9 trillion and the client base 9.1 million.

• FY2019–23 revenue and PAT CAGRs were 19% and 23%, respectively; FY2023 ROE was 42%.

Financial highlights

• Consolidated PBT fell 19.0% to ₹15,011.2 million; total expenses rose 21.4% to ₹19,243.6 million, with finance costs up 96% to ₹5,362.9 million.

• Interest income grew 39.4% to ₹10,014.9 million, driven by higher MTF/ESOP funding books and exchange-margin fixed deposits.

• Consolidated basic EPS was ₹34.62 versus ₹42.86; diluted EPS was ₹34.54 versus ₹42.69.

• Total assets increased 14% to ₹155,688.0 million; borrowings rose to ₹92.9 billion from ₹77.4 billion.

Outlook and guidance

• Strategic priorities include strengthening F&O, expanding loan and insurance distribution, growing private wealth, and continued investment in digital platforms, automation and analytics.

• The IPO pipeline comprised 29 deals worth over ₹503 billion, plus 17 mandates with amounts yet to be determined as of March 31, 2023.

• Management expected India’s real GDP to grow 7% in FY2024, supported by investment-led growth and lower crude prices.

• The stated FY2025 ambition is a digitally integrated financial marketplace, with non-broking businesses and ecosystem-led customer engagement scaled up.