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Angel One Q1 PAT rises 50% YoY to Rs 182 cr

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Capital Market
Last Updated : Jul 15 2022 | 11:31 AM IST

Angel One reported 49.6% rise in consolidated net profit to Rs 181.51 crore on a 44.69% increase in total income to Rs 686.53 crore in Q1 FY23 over Q1 FY22.

Profit before tax in Q1 FY23 stood at Rs 242.58 crore, up by 49.6% from Rs 162.16 crore in Q1 FY22. Total expenses rose by 42.1% to Rs 443 crore in Q1 FY23 over Q1 FY22.

As compared with Q4 FY22, the company's net profit declined 11.3% while revenue remained stable.

Earnings before depreciation, amortization, & taxes (EBDAT) decreased by 10.9% to Rs 249.1 crore in Q1 FY23 compared with Rs 279.5 crore in Q4 FY22. EBDAT margin de-grew to 48.4% in Q1 FY23 from 54.9% in Q4 FY22.

The company said that it continued to witness strong gross addition of 1.3 million clients in Q1 FY23, crossing 10 million client mark during the quarter. Total client base was 10.4 million in Q1 FY23, up 13% QoQ and 96.9% YoY.

The firm's overall retail equity turnover market share stood at 20.8% in Q1 FY23, down 21 bps QoQ.

Angel's Average Daily Turnover (ADTO) stood at Rs 9,39,800 crore in Q1 FY23, up 8.9% QoQ.

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Dinesh Thakkar, chairman and MD, said: India is experiencing a significant and fundamental shift with growing financialization of savings, as seen from 7.6% and 10% sequential growth in demat accounts and cash trades & F&O contracts respectively in Q1 FY23. Retail investors continue to be net buyers for nine consecutive months, investing over Rs 1.4 trillion in cash segment on NSE and owning nearly 9.7% in India Inc., highest since September '16.

Angel's tech-focused approach has not only made the business resilient but facilitated us to hold a strong market position. Our endeavour to offer clients the best investing experience is reaping rich dividends, as evidenced by our robust operational performance over many quarters. We continue to expand our market share in total demat accounts, incremental demat accounts and NSE active client base.

We are preparing to leverage the maturing ecosystem by broadening our product portfolio. The first step towards this is the roll out of our Super App to our iOS and Web clients, access to which will progressively be given to our Android clients. In line with our dividend policy, the board of directors have declared a distribution of 35% of the quarters' profit, as an interim dividend to the shareholders.

Narayan Gangadhar, chief executive officer of Angel One said, Quarter gone by has been historic, as we became one of the few players to surpass the 10 million client mark. Our strong operational parameters demonstrate high level of resilience of our business model, despite market cycles. For 39 months in a row, i.e. since we migrated to a flat pricing structure, we have experienced growth in our average daily orders in over 80% instances, when the headline indices corrected by 5% or more.

We are confident of the robustness of our business model and strongly believe that our engines will facilitate us to garner superior growth from our target markets. The successful roll out of the first phase of our Super App, has been a hallmark event. The app will be superimposed with multiple layers, offering a variety of different financial products.

As we move ahead to achieve our goal of market leadership, we further expanded our tech talent pool with hirings from top tech companies. These assets are vital for the growth of our business as they will enable us to build superior products for our clients, thus offering them the best experience. This will positively contribute to make the business robust, resilient and competitive.

The company's board has recommended an interim dividend of Rs 7.65 per equity share.

Angel One is the largest listed retail stock broking house in India, in terms of active clients on NSE.

Shares of Angel One were down 1.89% at Rs 1,287.50 on the BSE.

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First Published: Jul 15 2022 | 10:19 AM IST

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