BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
ICICI Securities Ltd. delivered yet another quarter of robust performance, with revenue (Rs 8.6 billion, 26% YoY) and profit after tax (Rs 3.5 billion, 26% YoY) beating our estimates by 9%.
The cost /income ratio inched up by 70 basis points sequentially to 45%, led by an 11%/34% rise in employee cost/other expenses (related to marketing cost and technology investments).
Employee cost-to-total income stood ~20% versus ~23% in FY21 and 29-32% over FY18-20.
We have raised our FY22E/FY23E earnings per share estimates of ICICI Securities by ~5%/4% to factor in higher than expected traction in margin trading facility, distribution, and investment banking segments.
Profitability should improve over the medium term with scale benefits.
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