ICICI Securities on Wednesday said the company continues to see growth in the equity and distribution business after it reported a 26 percent jump in profit after tax to Rs 351 crore.
In an interview with CNBC-TV18, Vijay Chandok, managing director and chief executive officer, said the company has been embarking on a transformation agenda for almost two years and the tenets of that transformation are broad basing our business model, "We already enjoy a large franchise of customers. We enjoy a strong investment in technology that has been made over the years, we digitise a lot and we have improved the processes. We have the benefit of having several products available in the financial services space in one place, which is not the case in some of the new age guys."
He said, "We also offer some very unique propositions in terms of instant liquidity. For instance, on sale of shares, or margin trading finance is very popular with investors and it's one of the most attractively priced. We have practical tools for investors as well as research that is proprietary. So this is the way in which we are differentiating."
Further, Chandok said, "We are expanding our product suite quite substantially. We have added a lot more promise behind the distribution of mutual funds, insurance products."
He said, company's incremental market share gain in September was at 12 percent, which gave them a 20 basis points improvement in market share on a sequential-quarter basis, "We are going through a transformation agenda, we launched several new plans. These new plans are more aligned with the newer ways of pricing customers."
“While we continue to see growth in equity business, which is reflected by the sequential growth in our equity revenue itself by about 6 percent. We have seen very strong growth in the distribution income picture which actually, overall led to a 13 percent sequential increase in profits," he added.
The distribution business for the company saw a healthy quarter -- the mutual fund revenue growth was up almost about 18 percent, investment banking division recorded the best ever quarterly revenues.
Chandok said, the company see addition coming on account of by more widespread penetration of insurance products and loan products, which are relatively newer forays for our company.
"So more headroom for growth, not only from mutual funds on the distribution side but also on some of the other products like insurance as well as loans,” he said, adding that when you are talking to the insurance business, the corporate side of it, it's a relatively smaller part of our pie and it is about 15 percent of our total revenues. The pipeline is pretty healthy, at least for the next couple of quarters.
For the full interview, watch the video.