ICICI Securities Q1 result: Net income falls 12% to Rs 273 crore; adds 4.4 lakh new clients

ICICI Securities on Thursday reported a 12 per cent decline in net income at Rs 273 crore in the June quarter despite an increase in revenue during the same period.

The company's topline grew 6 per cent to Rs 795 crore in the first quarter of this fiscal on the back of healthy growth in retail allied and distribution income, it said in a statement.

Institutional equities revenue during the quarter fell 17 per cent Rs 48.6 crore, primarily due to slowdown in market volumes and decline in capital market deals.

Distribution business continues to scale well as revenue stood at Rs 152 crore, up 28 per cent compared to the year-ago period on the back of strong performance from mutual funds, insurance and other products.

The company disbursed Rs 619 crore worth of loans (margin funding) during the latest June quarter as against Rs 318 crore in the same period a year ago.

The brokerage has a client base of 80 lakh of whom over 4.4 lakh were added during the June quarter but only around 35 lakh are active. The active number of clients is much lower than new-age peers like Zerodha (over 62 lakh), Upstox (over 52 lakh) and Groww (38 lakh) and Angel One (36 lakh).

Digital sourcing and open architecture approach continue to demonstrate strength with 72 per cent of new customers coming from channels other than ICICI Bank.

During the June quarter, 62 per cent of new customers are under 30 years of age and 85 per cent are from small towns, which was 78 per cent a year ago, the statement said