Angel One Limited · NSE:ANGELONE
Angel One — Q2 FY2023 Earnings Presentation
39 slides from Angel One's earnings presentation, Oct 13, 2022
Slide 1: Covering letter to stock exchanges
To, Listing Department Department of Corporate Service National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, G Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai - 400 051. Mumbai - 400 001. Symbol: ANGELONE Scrip Code: 543235 Dear Sir/ Ma
Slide 2: Q2 '23 Investor Presentation
Q2 ‘23 Investor Presentation
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Angel One Limited (the “Company”) (formerly known as Angel Broking Limited), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to
Slide 4: Q2 '23: Historic Best Performance
Q2 ‘23: Historic Best Performance 6.3% 11.1% 49 bps 11.3% 1.2 million 11.6 million ₹ 7,459 million Share in India’s Demat Gross Client Acquisition Total Client Base Gross Revenues Accounts 4.0% Maintained 62 bps 2nd 11.2% 4.2 million ₹ 2,136 million Largest in Incremental Share in NSE Active NSE Act
Slide 5: Angel One Super App Pillars
Angel One Super App Pillars SWIFTNESS SIMPLICITY Driven by personalisation, aims to cater to individual Faster interactions due to a refined and scalable personas. Modular onboarding, faster activation broadcast, peak-time order handling capabilities, triggered by easy-to-use features like Insta Tra
Slide 6: Seamless Migration For iOS
Seamless Migration For iOS Lower Contact Ratio On New App 92% 93% Daily logins on Orders on iOS NPS for Order iOS are from are placed on Journey New App New App Old App Super App Upgrades Undertaken in Q2 FY23: Portfolio 3.0 KYC 2.0 Login 2.0 AMX 2.0 Payments 2.0 Report 2.0 Order Journey Option Chai
Slide 7: Product Enhancements Focused On Improving Overall Client Experience
Product Enhancements Focused On Improving Overall Client Experience • Live for 100% iOS clients 27% KYC 2.0 • KYC 2.0 for Web to go live for limited set of clients Higher NPS in comparison to • Features like real-time selfie capture & on-screen signature KYC 1.0 • Built new website Angelone.in to im
Slide 8: Tech Innovation To Build Efficiency
Tech Innovation To Build Efficiency ₹ Portfolio Revamp • Simplified portfolio pipeline Charts for better reliability • Upgraded version of • Automated execution of TradingView library Portfolio workflow and Ruggedisation integrated with Charts Datacenter Corporate Actions • Core Trading Services • C
Slide 9: Huge Untapped Potential
~ «\ AngelOne 4 Huge Untapped Ww
Slide 10: India, Largely Underpenetrated Market
India, Largely Underpenetrated Market Steady Growth In Demat Accounts In India Rising Penetration Of Demat Accounts In India (Mn) 18.2% CAGR 7.3% 103 6.4% 90 Inflection Point 55 4.1% 41 2.7% 3.1% 32 36 2.1% 2.4% 25 28 1.7% 1.7% 1.8% 2.0% 21 22 23 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 H1
Slide 11: Digital Brokers Outpacing Competition
Digital Brokers Outpacing Competition Share Of Top 5 Digital Brokers In Incremental NSE Active Clients Others 26% 24% 31% 23% 32% 30% 34% 34% 61% Degrowth in Industry’s Active Client Base by 0.7 mn in Q2 ‘23 74% 76% 69% 77% 68% 70% Top 5 Digital Brokers* 66% 66% 39% Angel One added 0.2 mn active cli
Slide 12: Growth Delinked To Market Cycles
Growth Delinked To Market Cycles Consistent Improvement In Trade Volumes Despite Market Volatility Over Last 16 Years Index % Change NSE Total Trades % Change In Incremental (# of Cash Trades + Year NIFTY MIDCAP NIFTY MIDCAP F&O Contracts) NSE Total Demat NIFTY 50 NIFTY 50 Trades Accounts (Mn) 150 1
Slide 13: Digital Business Driving Exponential Growth For Angel
Digital Business Driving Exponential Growth For Angel
Slide 14: Angel Gaining Market Share In NSE Active Client Base
Angel Gaining Market Share In NSE Active Client Base Expanding Market Share In NSE Active Client Base Improving Share In Incremental NSE Active Client Base 411 bps Expansion In Market Share 2nd Largest Player Angel added 0.2 mn active clients, against industry’s 11.2% 10.1% 10.6% 18.4% 9.3% 9.7% deg
Slide 15: Retail ADTO Market Share Across Segments
Retail ADTO Market Share Across Segments Overall Equity Market Share (%) 20.8% 22.7% 21.2% 20.9% 21.0% 20.8% 21.7% 16.1% 12.3% 1.8x Growth Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 F&O Market Share (%) 20.9% 22.9% 21.3% 20.9% 21.1% 20.8% 21.7% 16.1% 12.1% 1.8x Growth Q2 '21 Q3 '
Slide 16: Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities
Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities >95% Of Gross Client Addition Contributed By Tier 3 & Tier 2 Cities In Q1 ’23 (‘000) 2.1x Growth 1,468 1,337 81 1,277 71 1,257 1,204 79 62 82 1,178 509 57 Tier 1: 1.2x Growth 956 476 412 61 376 455 385 Tier 2: 2.0x Growth 349 550 511 48
Slide 17: Digital, Driving Strong Client Acquisition
Digital, Driving Strong Client Acquisition 92% Of Gross Clients Added Under Flat Fee Plan 7% 8% 8% 8% 8% 8% Traditional Plan 10% 10% 10% (Driven by AP network) 90% 90% 90% 93% 92% 92% 92% 92% 92% Flat Fee Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Gross Client Addition 550 511 95
Slide 18: Digital Business Drives Multifold Increase In Client Activity
Digital Business Drives Multifold Increase In Client Activity Flat Fee Dominates Overall ADTO 5% 5% 4% 4% 4% Traditional Plan 16% 17% 7% 8% (Driven by AP network) 93% 92% 95% 95% 96% 96% 96% Flat Fee 84% 83% Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Strong Growth In Overall ADTO
Slide 19: Strong Growth In Client Activity
Strong Growth In Client Activity Growth In Cash Segment Growth In F&O Segment Growth In Commodity Segment Cash ADTO (₹ Bn) No. Of Orders (Mn) F&O ADTO (₹ Bn) No. Of Orders (Mn) Commodity ADTO (₹ Bn) No. Of Orders (Mn) 80 70 14,000 200 160 9 52 173 59 180 88 70 57 57 60 12,000 140 55 153 40 160 147 7
Slide 20: Digital Led Business Model Successfully Weathering Market Volatility
Digital Led Business Model Successfully Weathering Market Volatility Angel’s Average Daily Orders Increased In 18 Out Of 22 Instances, Where Either Index Corrected By >5% Over The Last 42 Months Period # of Trading Days Fall In Nifty 50 Fall In Nifty MidCap 150 Fall In Nifty Bank Change in Angel’s A
Slide 21: Financial Highlights
Financial Highlights w,
Slide 22: Q2 '23: Key Highlights
Q2 ‘23: Key Highlights 11% 29% 230 mn ₹ 14,455 mn Average Client Funding Book for QoQ Growth in Total Client Base QoQ Growth in Avg. Daily Turnover Number of Orders Q1’ 23 ₹ 7,459 mn ₹ 2,926 mn ₹ 2,857 mn ₹ 2,136 mn 9.0% QoQ Growth Gross Revenues 17.5% QoQ Growth in EBDAT 17.7% QoQ Growth in PBT 17.
Slide 23: Client Funding Book Spread Over Wide Customer Base
Client Funding Book Spread Over Wide Customer Base Client Funding Book Size Low Per Client Exposure Client Funding Book Segmentation (% of clients using the facility) (₹ Mn) (₹) <₹ 0.1mn ₹ 0.1-0.5mn >₹ 0.5mn 17,788 4.2% 4.1% 4.9% 16,687 1,17,314 15,947 1,08,793 9.7% 10.1% 11.0% 97,473 85.7% 86.2% 84
Slide 24: New Digital Model Showing Better Prospects
New Digital Model Showing Better Prospects Quarterly Average Revenue Per Client Significant Growth In Overall Client Base (₹) (Mn) 714 11.6 620 669 588 9.2 10.4 544 525 511 7.8 451 430 6.5 4.1 5.3 2.7 3.2 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '
Slide 25: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Ancillary Transaction Revenue Distribution Other 1% 2% 1% 1% 0% 2% 2% 3% 2% 1% 2% 1% 1% 1% 1% 1% 1% 2% 3% 6% 6% 8% 8% 9% 5% 6% 6% 17% 14% 15% 15% 17% 16% 6% 16% 4% 18% 4% 17% 4% 7% 6% 7% 6% 6% 70% 71% 68% 68% 67% 69% 70%
Slide 26: Net Broking Revenue Contribution Mix
Net Broking Revenue Contribution Mix (₹ Mn) Age-wise Net Broking Revenue Split (9.2mn gross client addition since Sep’20) <2 years 2-5 years >5 years 3,580 3,218 3,216 301 2,745 265 259 2,312 248 507 811 Growth in 2,055 597 1,788 221 425 revenue from 2-5 182 200 1,303 1,329 343 364 years old clients
Slide 27: Technology Adoption: Enhancing Quality And Scalability
Technology Adoption: Enhancing Quality And Scalability Employee Base Scaling Up Digital Focused Talent Pool (Nos) (Nos) 603 609 610 630 633 3,367 3,378 3,298 3,223 567 3,146 3,120 2,733 2,787 2,908 496 450 388 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q2 '21 Q3 '21 Q4 '21 Q1 '22
Slide 28: Leading To Significant Operating Leverage Benefits
Leading To Significant Operating Leverage Benefits Consolidated EBDAT (₹ Mn) 2.8x 2,795 2,926 2,491 2,256 1,663 1,839 1,464 1,043 1,093 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 EBDAT Margin : Flat Fee Plan EBDAT Margin : Traditional Plan 53% 50% 68% 49% 67% 45% 45% 44% 44% 45%
Slide 29: Consolidated Business Performance
Consolidated Business Performance (₹ Mn) Gross Revenues Profit After Tax Gross Broking Interest Income Other +9% +13% +0% +18% +24% -11% +13% 7,459 6,835 6,845 2,136 +14% 1,029 +23% 2,048 +13% 6,053 1,012 927 1,816 +33% 1,244 +11% 5,361 917 +19% 1,646 1,063 1,210 4,723 -1% 868 +39% 4,171 986 1,343 7
Slide 30: Consistently Paying Dividend
Consistently Paying Dividend Dividend Per Share Dividend Payout 35% in FY2021 35% 35% 35% 37% 35% 35% (₹ / Share) 9.25 9.00 7.50 7.65 7.00 5.70 5.15 4.15 Q2 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Particulars (₹ / Share) Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Con
Slide 31: Financial Snapshot
Financial Snapshot (₹ Mn) Gross Revenues Cost To Net Income Profit After Tax 10,084 14,304 42.0% 45.5% 52.8% 50.7% 3,952 1,956 2,454 2,557 1,652 1,605 9,893 6,827 H1 '22 H1 '23 H1 '22 H1 '23 H1 '22 H1 '23 Gross Broking Interest Income Other Return on Average Equity; H1 RoE Annualised Client Funding
Slide 32: Summary Of Consolidated Profit & Loss Statement
Summary Of Consolidated Profit & Loss Statement Particulars (₹ Mn) Q2 FY23 Q1 FY23 Q2 FY22 H1 FY23 H1 FY22 FY22 FY21 (a) Interest Income 959 1,088 815 2,047 1,448 3,328 1,769 (b) Fees and commission income 6,197 5,607 4,364 11,804 8,253 18,961 10,778 (c) Net gain on fair value changes 12 2 95 14 199
Slide 33: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Sep’22 Mar’22 Financial Assets (a) Cash, cash equivalents and Bank Balance 52,872 48,750 (b) Other Trade Receivables 1,564 2,711 (c) Client Funding Book 16,687 16,518 (d) Investments 973 187 (e) Other financial assets 19,388 1,947 Non-financia
Slide 34: About Us
About Us
Slide 35: Board Of Directors
Board Of Directors Muralidharan Uday Sankar Roy Kamalji Sahay Ramachandran Independent Director Independent Director Independent Director • 34+ years experience in technology companies • 45+ years experience like TCS, Satyam Computer, Epicenter • 37+ years experience • Former Director on the boards
Slide 36: Experienced Management Team
Experienced Management Team Narayan Gangadhar, CEO Dinesh Radhakrishnan, CPTO Jyotiswarup Raiturkar, CTO Ankit Rastogi, CPO • MS in Computer Science • Master of Computer Applications, CEG Guindy • MS - Illinois Tech, Tech NIT Nagpur Comp. • B.E. (Computer Engineering) – Gold Medalist, NIT • 20+ yrs
Slide 37: Awards & Accolades
Awards & Accolades Technology Capital Markets Marketing Reimagining stock Broking for the Recognition for being amongst India’s YouTube campaign of the year at The Millennial India at ImageXX BFSI Best Workplaces in Fintech by Great Great Indian BFSI Awards 2022 by BFSI Services and Fintech awards o
Slide 38: Scaling Up Ranks
Scaling Up Ranks 2017 2018 2019 Top 100 Best Workplaces in India Recognized by The Great Place To Work Institute of India Best in Industry: Fintech Recognized by The Great Place To Work Institute of India Top 30 Best Workplaces in BFSI 2020 2021 2022 Recognized by The Great Place To Work Institute o
Slide 39: Company and Investor Relations Advisors contact details
Company : Investor Relations Advisors : Angel One Ltd. (Formerly Known as Angel Broking Limited) Strategic Growth Advisors Pvt. Ltd. CIN – L67120MH1996PLC101709 CIN - U74140MH2010PTC204285 Mr. Hitul Gutka – Head IR Mr. Shogun Jain / Mr. Shrikant Sangani Email Id – hitul.gutka@angelbroking.com shogun