ICICI Securities (ISEC) Q3 24/25 earnings summary

Executive summary

• Retail equity ADTO rose 9% sequentially, with December showing a 44% jump over the previous quarter, offsetting declines in October and November.

• Consolidated revenue rose 50% year-over-year to ₹13,233 million in Q3 FY2024, driven by strong growth across business segments.

• Profit after tax increased 66% year-over-year to ₹4,657 million, with robust performance in broking, investment banking, and wealth management.

• Total client assets reached ₹6.9 trillion, up 16% year-over-year, and client base expanded to 9.7 million, up 11% year-over-year.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on January 20, 2025.

Financial highlights

• Consolidated revenue from operations for Q3 FY25 was ₹15,859.7 million, up from ₹13,227.3 million in Q3 FY24.

• Consolidated net profit for Q3 FY25 was ₹5,044.6 million, compared to ₹4,656.9 million in Q3 FY24.

• Derivatives brokerage revenue dropped sequentially from INR 137 crores to INR 123 crores, mainly due to yield migration and fewer trading days.

• ROE improved to 55.6% from 43.0% in Q3FY23.

• Finance costs increased 70% YoY due to higher borrowings for MTF and increased interest rates.

Outlook and guidance

• The company is undergoing a delisting process to become a wholly owned subsidiary of its holding company, pending regulatory and legal proceedings.

• Focus on diversifying revenue streams, reducing reliance on cyclical broking, and scaling up wealth and distribution businesses.

• Targeting total assets of ₹10 trillion and cost/net income below 35% by 2025.

• Continued investment in technology and customer experience to drive growth.

• Medium to long-term industry prospects remain positive, but short-term outlook is uncertain due to global headwinds and upcoming general elections.