New Delhi: Enthused by the revival in stock markets, the largest equity brokerage firm ICICI Securities on Sunday exuded confidence that it can repeat its feat of about 100% growth in a year but said no to global expansion for now.
“We certainly believe so as long as market conditions support us,” ICICI Securities managing director and CEO Madhabi Puri Buch said when asked if the firm could repeat the showing of about 100% growth that it recorded in 2007-08.
“We have the competitive wherewithal to very much satisfy our customers and therefore grow at a similar pace,” she said.
Putting a caveat that she would not make a forward-looking statement, Buch said, “We would certainly hope so.” ICICI Bank’s brokerage and investment banking arm recorded a six-fold rise in income to reach Rs439 crore in the year ended March 2007 and touched Rs749 crore in the subsequent year.
She, however, said that during the year gone by, income came down to Rs520 crore, though I-SEC increased its market share despite difficult conditions.
The company’s profit after tax had gone up from Rs21 crore in 2005-06 to Rs63 crore in the subsequent year and to about Rs150 crore in the year ended March 2008, and now its net worth is Rs160 crore.
Growth this year would be largely from domestic operations, for which I-Sec is well poised with an extensive network, she said, adding, “we would be focusing on India. We would not be increasing international franchise now”.
“In fact we were quite happy and comfortable with that (total income of about Rs520 crore) because we actually increased our market share in terms of our retail clients. It was reinforcement of the way in which we run our business,” Buch said.
On comparison with Reliance Money, a brokerage firm of the Anil Ambani group, she said, “On the retail side, certainly we are much bigger.”
“On the capital market side, again we are number one in terms of issuance — initial public offers and follow-on public offers — but I must admit we play a much smaller role in mergers and acquisitions, because that part of the business is aligned with (ICICI) Bank.”