Revenues from major Indian brokerage firms increased by 25% to 95%, while profits jumped by 25% to 125%. Acquiring many young clients across the country has helped most brokerages post solid gains, they said.
ICICI Securities reported a 52% increase in year-on-year revenue to Rs 942 crore in the December 2021 quarter, while its net profit jumped 42% to Rs 380 crore. Shares and related businesses of ICICI Securities rose 36% year-on-year to Rs 596 crore in the December 2021 quarter. The firm added nearly 6.8 lakh new customers in this period, the highest addition ever in a quarter.
Angel One recorded a 95% growth in revenue to Rs 597 crore and a 126% increase in net profit to Rs 165 crore for the December quarter. The company recorded a gross increase in customer base of 13.4 lakhs during the quarter.
Axis Securities’ brokerage revenue for the December quarter rose 58% year-on-year to Rs 175 crore, and net profit rose 29% to Rs 57 crore.
Strong retailer participation through direct equity investments led to solid growth in brokerage business, market participants said.
“The number of dematerialized accounts opened in recent months clearly reflects the growth of the Indian stock market,” said B Gopkumar, Managing Director and CEO of Axis Securities. “Increasing retail participation in equity trading and growth in segments such as brokerage, distribution, wealth management and fundraising contributed the most to revenue growth as well as earnings growth in the brokerage industry.”
The sudden surge in retail investor participation in Indian stocks began in late March 2020, when the central government first shut down the country to fight Covid-19. Struggling with income and job losses, many people have started trading stocks, with a buoyant stock market helping their cause.
According to the economic study released on Monday, around 22.1 million individual demat accounts were added in April-November 2021. In the October-December 2021 quarter, 10.3 million demat accounts were opened, according to CDSL and NSDL Data.
Motilal Oswal Financial Services Capital Markets segment revenue rose 68% to Rs 726 crore, and profit nearly doubled to Rs 148 crore in the December quarter.
According to Vijay Chandok, MD and CEO, ICICI Securities, approximately 68% of clients acquired in the December quarter are under the age of 30 and 87% are from Tier II cities and below.
HDFC Securities reported a 58% year-on-year increase in net sales and net profit to Rs 532 crore and Rs. 258 crore respectively in the December quarter compared to the same quarter last year.
“HDFC Securities acquired 4.05 lakhs, new customers, in the third quarter of fiscal 2022, and there is a continued increase in the monthly acquisition rate of new customers supported by digital acquisition and growing interest clients for capital markets and investment products,” said Kunal Sanghavi, Chief Financial Officer, HDFC Securities.
Meanwhile, the National Stock Exchange recorded revenue growth of 57% to Rs 2,490 crores in the December quarter while its operating profits jumped 54% to Rs 1,796 crores.