Brokerages Angel Broking Ltd., ICICI Securities Ltd. and Motilal Oswal Financial Services Ltd. saw their profit and revenue rise in the quarter ended September, driven by broking business as they continued to add clients.
Brokers have seen client addition spike as more retail investors flocked to equity markets to ride the recovery from the worst selloff in more than a decade triggered by the coronavirus pandemic.
Here’s how the three brokerages fared during the July-September period...
Angel Broking
The newly listed brokerage was the best performer among peers, registering an 80% jump in revenue over the year ago.
Its revenue stood at Rs 309.9 crore in the quarter ended September 2020 compared with Rs 171.8 crore in the corresponding period a year ago. Net profit jumped nearly fourfold to Rs 74.5 crore.
Broking business—contributing 70% to the company’s overall revenue—posted a growth of 77% over the year earlier to Rs 316.5 crore in the reported period.
The company added 5.4 lakh new clients in the July-September period.
ICICI Securities
Total revenue of the investment services provider rose 63.2% year-on-year to Rs 680.7 crore. Its net profit jumped twofold to Rs 278.2 crore.
Its broking business grew 82% to Rs 392 crore. The company added 1.13 lakh clients during the reported quarter—the most in six months.
The brokerage’s total active client base rose 17% to 15.6 lakh, of which its NSE active client base rose 32% to 12 lakh.
The company also hopes for a turnaround in its distribution business. “We delivered growth in our MF distribution business after seven quarters. I am confident that all parts of the distribution business will contribute positively,” Vijay Chandok, managing director and chief executive officer at ICICI Securities, said a statement.
Motilal Oswal
Motilal Oswal reported the highest ever revenue in the quarter ended September.
Its consolidated revenue rose 14% year-on-year to Rs 747.2 crore, according to an investor presentation. Net profit, too, was the highest ever, doubling at Rs 296.5 crore.
Revenue from the company’s broking business rose 40% to Rs 421.6 crore. Brokerage income grew 67%, while distribution income fell 18% over the year ago. The company also added 2.04 lakh new clients in the first half of the ongoing financial year, nearly three times from the same period last year.
Motilal Oswal’s profitability was also aided by a reduction in impairment on financial instruments, which fell 53% year-on-year to Rs 2,380 crore.
Shares of ICICI Securities have outperformed Motilal Oswal so far this year. While ICICI Securities stock is up 12%, Motilal Oswal has declined 25% during the period. Shares of Angel Broking, which debuted at a 10% discount, are up 24.6% since listing on Oct. 5.
RECOMMENDED FOR YOU
POPULAR