- ICICI Securities has shown strong financial performance in Quarter 2 FY24.
- Retail equity ADTO grew by about 34% sequentially, and retail derivative ADTO grew by about 18% sequentially.
- Systematic investment plans and mutual funds continued to perform well.
- Market share improved across various parameters, including cash equity, retail derivatives, and commodities.
- Client assets increased by 12% on a Y-o-Y basis, reaching Rs. 6.5 trillion.
- The wealth segment saw a 20% Y-o-Y growth.
- The company is focusing on acquiring quality clients, expanding its distribution business, and enhancing customer experiences.
- While short-term market outlook may have some volatility due to geopolitical factors and upcoming elections, the medium to long-term industry prospects remain strong.
- The company has approved an interim dividend of Rs. 12 per share, up from Rs. 9.75 per share last year.
- The competition from zero brokerage fee products has been present for several years, and ICICI Securities has differentiated itself and maintained market share.
- They have passed on about 60% of the MTF rate increases.
- The prime plan and lifetime plan have contributed to increased acquisition and customer retention.
- ICICI Securities is focused on growth, diversification, and enhancing technology to harness market opportunities.
- ICICI Securities reported a significant revenue growth in Quarter 2 FY24, with a 44% increase on a Y-o-Y basis and a 34% increase on a sequential quarter basis.
- The profit after tax for the quarter also grew substantially, by about 41% on a Y-o-Y basis and 56% sequentially.
- The company is actively participating in the primary market mobilization, and this segment has seen significant growth, primarily due to improved market sentiment.
- The Board of Directors approved an interim dividend of Rs. 12 per share, reflecting the company's financial strength.
- The company is closely monitoring market developments and recognizes that the short-term outlook may have some volatility, especially due to geopolitical matters and upcoming elections.
- ICICI Securities reported strong financial results, including a 44% increase in revenue and a 41% increase in profit after tax on a Y-o-Y basis in Q2 FY24.
- The institutional brokerage business saw a surge in revenue due to market share gains and improved market volumes.
- The company is actively monitoring the process of delisting, which is under regulatory guidelines.
- The company's cost-to-income ratio is around 42%, reflecting a balanced approach to investments and cost management.
- Shareholders expressed concerns about the swap ratio in the impending merger and the level of dividend payouts.
- The company maintains a healthy net cash position, with cash and cash equivalents of approximately Rs. 9,200 crores and its own cash (net worth) of nearly Rs. 3,100 crores.
- The process of delisting is following regulatory guidelines, and the offered price is determined according to the scheme documents, with an opportunity for shareholders to vote on the scheme.
- The dividend payout is in line with the company's policy, which aims to distribute at least 50% of profits as dividends. The board considers factors like sustainability and consistency when determining dividend payouts.