ICICI Securities witnessed an impressive 8 percent surge in early trading, reaching a 52-week high of Rs 683 on October 16 following its exceptional performance in the July-September quarter.
The broking company reported a remarkable 41 percent increase in net profit, reaching Rs 423.6 crore during July-September, a significant upswing from the Rs 300 crore recorded in the same period the previous fiscal year.
Revenue also exhibited substantial growth, surging by 45.5 percent year-on-year to reach Rs 1,249 crore, and total assets under management experienced a 12 percent rise to reach Rs 65 lakh crore. Furthermore, the operating margin expanded to 64.9 percent in July-September, compared to 61 percent in the corresponding period of the previous year.
At 09.43 am, shares of ICICI Securities were trading 3.33 percent higher at Rs 653 on the National Stock Exchange. Trading volumes for the stock also saw a sharp increase, with 14 lakh shares changing hands, in contrast to the one-month daily traded average of three lakh.
After facing challenges last year due to a strong correlation between its revenue and the broader equity markets, ICICI Securities’ decision to diversify its revenue streams has garnered praise from brokerage firm Motilal Oswal Financial Services.
According to MOFSL’s report, “ICICI Securities is now in the process of diversifying its revenue with the launch of several tools and products for the derivatives segment, which will further boost revenue in due course.”
In addition to its financial success, ICICI Securities also managed to expand its market share across various segments in Q2. The firm’s retail cash equity market share increased to 12.8 percent from 10.6 percent a year ago, while it rose to 7.8 percent from 5.5 percent in the commodity market segment.