In Thursday’s early trading, Angel One shares surged by over 8% following an announcement from the retail brokerage revealing a substantial 27.3% year-on-year increase in net profit for the March 2024 quarter. The net profit for Q4 reached Rs 340 crore, up from Rs 267 crore in the corresponding period of March 2023.
Angel One’s stock climbed 8% to Rs 3099 compared to the previous day’s close of Rs 2851.65, emerging as the leading gainer on the BSE.
Q4 results of Angel One
During the last quarter, revenue from operations for Angel One surged by 64.4% year-on-year to Rs 1,357.3 crore, compared to Rs 831 crore in the same quarter of FY23. Operating profit also showed a significant increase, rising by 28.3% to Rs 475.5 crore from Rs 370.5 crore in Q4FY23.
However, despite these positive indicators, total expenses witnessed a substantial uptick of approximately 92%, leading to a decline in the net profit margin to 25% from 32.3% in the previous year. Profit before tax saw a notable increase, reaching Rs 458 crore in Q4 compared to Rs 361.6 crore in Q4 FY23. Furthermore, earnings per share for the company rose to Rs 40.48 in the last quarter, up from Rs 32.01 in Q4 FY23.
EBITDA also experienced growth, climbing by 37.2% to Rs 529.7 crore from Rs 386 crore in the corresponding period last year. However, EBITDA margins dipped to 39% in the March 2024 quarter, down from 46.7% in the same period of the previous fiscal year. EBITDA represents earnings before interest, tax, depreciation, and amortization.
Future plan for Angel One and its shares
Angel One is set to implement a shift in its business approach, aiming to prioritize expanding its market share in the cash segment and bolstering distribution revenues over the next 2-3 years. Motilal Oswal suggests that the distribution segment’s growth will be propelled by various products, including loans, insurance, and other offerings.
The management of the brokerage firm remains committed to investing in technology enhancements to fortify its market position and generate increased revenue from their shares.
Angel One experienced a surge of approximately 92% in total expenses, leading to a decline in its net profit margin to 25%. The company has been allocating more resources towards client acquisition and technological advancements to stay competitive amidst increasing competition from online brokers like Zerodha, Groww, and Upstox.
In the January-March period, Angel One’s share of demat accounts in India increased to 14.7%, up from 12% in the previous year.
Angel One- Brokerage firm
Angel One is a leading retail stock brokerage firm in India. They offer a variety of investment products and services including:
- Stocks: Trading and investing in shares of publicly traded companies
- IPOs: Applying for and investing in Initial Public Offerings (new companies issuing stock for the first time)
- F&O (Futures & Options): Contracts for buying or selling securities at a certain price in the future, used for managing risk and potentially amplifying returns
- Mutual Funds: Investing in professionally managed baskets of stocks and bonds
- Commodities: Trading in physical commodities like gold and oil
- US Stocks: Investing in stocks listed on American stock exchanges
They also boast a user-friendly platform for online trading with features like real-time charting and investment research.
In conclusion, Angel One’s recent performance in the market, marked by substantial increases in net profit and revenue, reflects its strong positioning within the brokerage industry. Despite challenges such as rising expenses and evolving market dynamics, the company’s strategic focus on expanding its market share in the cash segment and enhancing distribution revenues, supported by investments in technology, bodes well for its future growth trajectory.
As it continues to adapt to changing market conditions and intensifying competition, Angel One remains a key player in India’s financial landscape, poised to capitalize on emerging opportunities and deliver value to its stakeholders.
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