15th October 2024: Indian brokerage firm Angel One BSE: 543235) (NSE: ANGELONE)reported higher second-quarter profit on Monday, helped by increased trading activity in a period when local stock markets registered strong growth.
The company’s profit rose 39% to 4.23 billion rupees ($50.4 million) in the quarter ended Sept. 30, from 3.04 billion rupees a year earlier.
India’s benchmark stock indexes clocked multiple record highs during July-September and rose for the sixth consecutive quarter, aided by a strong economy and inflows from domestic institutional and individual investors.
The sustained growth in the equity market led to Angel One’s orders jumping 44.5%, which helped its total revenue rise to 15.15 billion rupees from 10.48 billion rupees a year ago.
The company’s total client base rose 61% to 27.5 million year-on-year.
Its expenses, however, surged 47% to 9.44 billion rupees, largely due to a 73% rise in employee-related expenses.
The company cited employee and stock options costs “on account of onboarding of talent in wealth, tech, product and data analytics,” for the higher expenses.
Angel One, which competes with startups such as Zerodha, Groww and Upstox, said its share in India’s demat accounts rose to 15.7% from 13.2% a year earlier.
The company’s shares ended 0.7% higher ahead of results on Monday. The stock has declined about 22% so far this year.
Commenting on Angel One’s performance, Mr. Dinesh Thakkar, Chairman & Managing Director said, “We are delighted to announce that Q2FY25 has marked a historic quarter for us, as we have achieved our best-ever performance across financial and operational metrics. With a 19.3% share in overall retail equity turnover, we continue to report an improvement in market share across all segments. Our sustained focus on growth, client satisfaction and technological advancements is helping us maintain our position as a leading player in India’s evolving financial ecosystem.
I am happy to share that we went live with the distribution of credit products and fixed deposits on our platform. We continue to witness growing offtake of mutual funds through our platform. The successful adoption of newer products on the Super App will further increase wallet share and improve the LTV. We continue to invest the building blocks of wealth management, as we further expand the team and our presence across different cities.
The expanding suite of products, from equity broking to distribution of third-party financial products, showcases the evolution of our Super App and its advanced capabilities. As we keep enhancing our product offerings, we are steadily becoming more capable of fulfilling all our client’s financial needs and empowering them to close their financial lifecycle loop within the platform.”
