ICICI Securities Q3 net profit up 36% to `137 cr
New Delhi: ICICI Securities, the investment services arm of ICICI Group, on Monday reported a 36 per cent rise in consolidated profit to Rs 137 crore for the third quarter of 2019-20. In comparison, the company's profit stood at Rs 101.1 crore in the October-December quarter of 2018-19, ICICI Securities said in a regulatory filing. The company's total income also rose to Rs 422.12 crore, compared with Rs 404.7 crore in the third quarter of the previous fiscal.
Rise in profit was on account of growth in revenue, reduction in expenses, and changes in statutory tax rates, it said.
During the quarter, ICICI Securities' revenues from retail equities and allied business climbed 5 per cent to Rs 228 crore from Rs 216 crore in the year-ago period.
I-Sec, which is a retail led equity franchise, distributor of financial products, and investment banker, has 4.7 million operational accounts, of which about 94,000 were added during the quarter.
"We continued to focus on executing our strategy of offering appropriate products and solutions to varied clientele across a spectrum of needs. We are continuously working towards building for the future with client interest at the center and a keen focus on using digitization to contain cost, enhance productivity and efficiency.
"During the quarter, we saw an uptick in retail participation due to large, mid, and small caps participating in the rally, and If the momentum in the broader market sustains, it will be beneficial for a franchise like ours," the company's MD and CEO Vijay Chandok said.
He said that in the current environment, where investors are looking for trust, transparency, and safety especially in the light of recent market developments, the company is well positioned to capitalise on it. The company's revenue from investment banking plunged by 31 per cent to Rs 18 crore in the quarter under review primarily due to lower number of high value deals. Besides, revenue from distribution business slipped 4 per cent to Rs 103 crore due to the anticipated reduction arising due to changes in regulations pertaining to mutual fund distribution.