ICICI Securities Q2 Evaluation – Sturdy efficiency led by margin buying and selling, distribution actions: Motilal Oswal

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ICICI Securities Ltd. posted one other sturdy quarterly efficiency, with revenues (Rs 8.6 billion, 26% yoy) and after-tax revenue (Rs 3.5 billion, 26% yoy) exceeding our estimates by 9%.

The fee / revenue ratio elevated 70 foundation factors sequentially to 45%, pushed by an 11% / 34% enhance in personnel prices / different bills (associated to advertising prices and expertise investments).

The whole cost-to-income ratio for workers was round 20% in comparison with round 23% in FY21 and 29-32% in FY18-20.

We now have elevated our earnings per share estimate for ICICI Securities FY22 / FY23 by roughly 5% / 4% to account for larger than anticipated traction within the margin buying and selling services segments, distribution and funding banking.

Profitability ought to enhance within the medium time period with benefits of scale.

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