Brokerage house ICICI Securities Ltd on Tuesday (January 16) reported a 66.6% year-on-year (YoY) jump in net profit at ₹465.1 crore for the third quarter that ended December 31, 2023.
In the corresponding quarter last year, ICICI Securities posted a net profit of ₹279.1 crore, the company said in a regulatory filing. The company's revenue from operations increased 50.5% to ₹1,322.4 crore against ₹878.8 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA jumped 66.3% to ₹910.7 crore in the second quarter of this fiscal over ₹547.7 crore in the year-ago period.
The EBITDA margin stood at 68.9% in the reporting quarter against 62.3% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
ICICI Securities' interest income increased from ₹268.96 crore for Q3 of FY23 to ₹454.62 crore in Q3 of FY24, an increase of 69%. This was primarily due to an increase in the average MTF funding book and MTF and fixed deposit yields.
Brokerage income increased from ₹313.74 crore for Q3 of FY23 to ₹464.72 crore in Q3 of FY24, an increase of 48.1%. This was primarily due to an increase in equity and derivative volumes.
Income from services increased from ₹277.78 crore to ₹379.47 crore in Q3 of FY24 year on year (YoY), an increase of 36.6%. This was primarily on account of an increase in issuer services and advisory fee income and income from distribution products, ICICI Securities said.
Net gain on fair value changes increased from ₹18.11 crore to ₹23.46 crore in Q3 of FY24, an increase of 29.5% primarily due to gain on fair value changes in the treasury segment.
Finance costs increased to ₹260.65 crore in Q3 of FY24 from ₹153.03 crore in the year-ago period . This was attributed to increased borrowing to fund MTF and an increase in borrowing costs on account of increased interest rates.
Fees and commission expenses increased from ₹42.59 crore for Q3 of FY23 to ₹51.11 crore for Q3 of FY24, primarily due to an increase in revenue-linked payout to partners. The operating expenses increased from ₹26.66 crore to ₹36.21 crore, mainly due to an increase in operating expenses linked to volumes.
Total assets increased from ₹15,568.8 crore as of March 31, 2023, to ₹22,676.48 crore as of December 31, 2023, an increase of 45.7%. This increase was primarily due to an increase in the MTF and ESOP book from ₹6,419.88 crore to ₹11,449.89 crore, and bank balance other than cash and cash equivalents from ₹6,550.13 crore as of March 31, 2023, to ₹9,597.19 crore as of December 31, 2023.
The results came after the close of the market hours. Shares of ICICI Securities Ltd ended at ₹778.40, up by ₹20.15, or 2.66%, on the BSE.
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