ICICI Securities Ltd. reported a twofold jump in profit in the quarter ended September, driven by broking business as it continued to add clients.
Revenue rose 63% over a year earlier to Rs 680.7 crore, according to its exchange filing on Wednesday. Mutual fund distribution showed marginal growth of 3%, and non-mutual fund distribution revenue declined. Retail broking business, however, grew 93% in July-September over a year earlier.
While cost cuts aided profit, new sourcing avenues and adoption of Prime plans aided better customer acquisition and activation of existing clients. The company also improved market share in both cash and derivatives segment.
Brokers have seen client addition spike during the pandemic as more retail investors flocked to equity markets to ride the recovery from the worst selloff in more than a decade.
ICICI Securities also launched a global investment platform in alliance with Interactive brokers, allowing clients to invest in U.S. equities, fixed income and mutual funds and exchange-traded funds. New sourcing channels including digital and on-boarding of more business partners helped gain 28,000 and 60,000 customers, respectively, the management said in an interaction with BloombergQuint.
The management is confident of continuing growth though it didn’t provide any guidance for the second half of the ongoing fiscal 2020-21.
Watch the full conversation here:
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