Angel One Limited · NSE:ANGELONE
Angel One — Q3 FY2024 Earnings Presentation
45 slides from Angel One's earnings presentation, Jan 15, 2024
Slide 1: Cover 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 Sirs/ M
Slide 2: Q3 '24 Investor Presentation
Q3 ‘24 Investor Presentation 15th January 2024
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Angel One Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities
Slide 4: Table Of Contents
Table Of Contents Q3 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 3
Slide 5: 24.7% share in India's incremental demat accounts in Q3 '24
Q3 ‘24 Performance Client Acquisition Metrics Active Client Metrics Transaction Metrics Financial Metrics 19.5 Mn (+14.0% QoQ) 5.3 Mn (+9.9% QoQ) 350 Mn (+3.5% QoQ) ₹ 8.3 Bn (+1.4% QoQ) Total Client Base NSE Active Client Base Number of Orders Total Net Revenue 2.5 Mn (+16.2% QoQ) 2nd (Maintained) ₹
Slide 6: Super App: Feature Enhancements
Super App: Feature Enhancements Open Interest Analytics Discover Stocks • Open Interest analytics helps clients to • Simplifying the first investment analyse OI, Put Call ratio vs time experience • Helps clients to visualise multi-strike OI • Screeners host different collection of charts stocks like
Slide 7: Scaling Up The Assisted Business
Scaling Up The Assisted Business Equities, Commodities, Currency Products Lending ✓ Multichannel play for better reach Mutual Funds Products ✓ Build an ecosystem to offer full product suite Insurance Fixed Income ✓ Significantly deepen our channel partner network and Products Products geographical r
Slide 8: Striving To Improve Client Experience
Striving To Improve Client Experience Features Development Live Pipeline New Features Introduced, Focused On Elevating Experience Tick-by-Tick Data On Charts • Significantly enhances accuracy & provides clients with data on the most recent market activity • Sharpens technical indicators & pattern re
Slide 9: Table Of Contents
Table Of Contents Q3 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 8
Slide 10: Strong Multi-Year Revenue Visibility From Clients Acquired
Strong Multi-Year Revenue Visibility From Clients Acquired Broking Revenue Progression Of Acquired Cohorts Beyond Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 Pre Digital • Historically, clients have given multi-year revenues, FY15 – 17 100% 47% 32% 26% 26% 26% making this an annuity business model FY1
Slide 11: Huge Operating Leverage From Acquired Base
Huge Operating Leverage From Acquired Base FY22 Cohort: Revenue / CoA Representation Estimated 3 Year Behaviour Based On Latest Actual Revenue Progression 3 Year 3 Yr Rev. / (₹ Mn) Year 1-A Year 2-E Year 3 –E Aggregate CoA • Acquired clients are profitable from Year 1, indicating Total Net Revenue 9
Slide 12: FinTech Model Showing Better Prospects For Every Cohort
FinTech Model Showing Better Prospects For Every Cohort Consistently Acquiring Younger Clients >89% Of Gross Client Addition Contributed By Tier 2, 3 & Beyond Cities In Q3 ’24 1,337 1,468 1,257 1,178 988 1,293 1,325 2,117 2,461 (‘000) <25 years >25 years 254 225 553 60% 57% 51% 490 Tier 1 157 169 13
Slide 13: EBDAT Bridge
EBDAT Bridge Q2 ‘24 EBDAT Margin Q3 ‘24 EBDAT Margin 51.3% -729 bps 44.0% (₹ Mn) Q3 ‘24 EBDAT impacted due to: 117 -56 -30 -574 • 1.7% QoQ Decline In Net Broking Income: • 20% increase in cash segment orders • Change in tariff structure for cash intraday segment • Offset by 14.2% QoQ growth in Net I
Slide 14: Expanding Multi-Product Relationship
Expanding Multi-Product Relationship Unique SIPs Registered Consumer Credit Products (‘000) ❖ Building proprietary AI/ML models using internal and 955 external consumer data, to facilitate lending partners 725 underwrite and collect better 431 ❖ Initial review of customer bureau data indicates high
Slide 15: Exploring Growth Opportunities
Exploring Growth Opportunities 07. Talent / IP Acquisition: 01. Manufacturing Platforms: Onboard strategic IP’s & entrepreneurial teams to Strategic investments in businesses of scale build differentiated products across consumer financial services landscape 07 01 06. Learning Platforms: 02. Distrib
Slide 16: Table Of Contents
Table Of Contents Q3 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 15
Slide 17: FinTech Model Enabling Penetration Of Vast Addressable Market
FinTech Model Enabling Penetration Of Vast Addressable Market India: Target Addressable Market India Population - 2021 Unique Accounts in Financial Individual PAN Card Holders India Demat Accounts India NSE Active Clients 26% Institutions (Mn) 26% 139 Mn 36 Mn 1.1 Bn 656 Mn (Dec ‘23) (Dec ‘23) 1.4 B
Slide 18: Digital Brokers At The Forefront Of Driving Penetration
Digital Brokers At The Forefront Of Driving Penetration Share Of Top 5 Digital Brokers In Incremental NSE Active Clients Industry -0.66 -2.05 -2.66 -1.77 Others Industry 27.3% 34% 32% 30% 34.1% de-grew Angel One +0.16 +0.06 +0.04 +0.13 but Angel continued Other Digital to grow Top 5 Digital Brokers*
Slide 19: Growth In Trade Volumes De-linked To Market Cycles
Growth In Trade Volumes De-linked To Market Cycles Consistent Improvement In NSE Trade Volumes Despite Market Volatility Over Last 16 Years 20,000 50 FY16: Slowing China FY20: COVID-19 GDP, Greek Debt Nifty 50: -26% 16,000 40 Number of Trades (Bn) FY12: High Inflation, Default, end of QE Trades: +38
Slide 20: Trading Activity On NSE
Trading Activity On NSE Activity On NSE In Nov ‘23 > 83 mn investors registered • Share of Individual investors’ in NSE free float market cap touched 19.5% • Share of Domestic MFs in NSE free float market Turnover > ₹ 100 ₹ 1 0 - 100 cap rose to a high of 17.6%, primarily led by an ₹ 1 mn - 10 mn ₹
Slide 21: Table Of Contents
Table Of Contents Q3 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 20
Slide 22: Consolidated Financial Performance
Consolidated Financial Performance (₹ Mn) Gross Revenues EBDAT Profit After Tax Gross Broking Interest Income Other +40% +18% +14% 4,185 10,493 10,608 3,045 3,641 1,411 1,401 2,603 3,099 2,280 7,597 1,812 2,123 1,126 1,371 7,270 7,084 5,100 Q3 '23 Q2 '24 Q3 '24 Q3 '23 Q2 '24 Q3 '24 Q3 '23 Q2 '24 Q3
Slide 23: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Distribution Ancillary Transaction Charges Other Income 8% 2% 9% 0% 8% 1% 1% 1% 1% 3% 4% 4% 17% 18% 20% Q3 ‘23 Q2 ‘24 Q3 ‘24 67% 67% 69% Gross Broking Revenue Mix F&O Cash Commodity Currency 5% 1% 4%0% 5% 0% 11% 11% 12% Q
Slide 24: Net Broking Revenue & Margin Profile
Net Broking Revenue & Margin Profile Reported EBDAT Normalised EBDAT Contribution to Net Broking Revenue EBDAT Margin* : Direct Business (₹ Mn) Direct Business Assisted Business 53% 54% 51% 51% 50% 48% 47% 45% 41% 5,232 5,144 48% 1,149 1,215 (22%) (24%) 3,532 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '2
Slide 25: Client Funding Book Spread Over Large Customer Base
Client Funding Book Spread Over Large Customer Base Client Funding Book Size Low Per Client Exposure Client Funding Book Segmentation (% of clients using the facility) (₹ Mn) (₹) 1,31,406 <₹ 0.1mn ₹ 0.1-0.5mn >₹ 0.5mn 1,17,432 4.1% 6.3% 4.7% 19,459 19,742 1,02,280 8.8% 7.7% 10.1% 13,773 87.0% 83.7%
Slide 26: High Variable Cost Insulates Margin Profile
High Variable Cost Insulates Margin Profile FY23 Cost Split Variable cost: 78% Other variable cost includes cost of acquisition, components of employee benefit expenses, cloud expenses, KYC & transactional expenses High variable cost structure provides elastic cost levers to protect margins 25
Slide 27: Consistently Paying Dividend
Consistently Paying Dividend Dividend Per Share (₹ / Share) 13.60 12.70 12.70 9.25 9.00 9.60 9.25 7.50 7.00 7.65 5.15 5.70 4.15 Q2 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Particulars (₹ / Share) Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Q
Slide 28: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ Mn) Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23 FY23 FY22 (a) Interest Income 2,123 1,812 1,371 5,383 3,825 5,195 3,653 (b) Fees and commission income 8,447 8,649 6,092 23,703 17,896 24,760 18,961 (c) Net gain on fair value changes 20 18 23 58 37 61 29
Slide 29: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Dec’23 Mar’23 Financial Assets (a) Cash, cash equivalents and Bank Balance 90,603 54,911 (b) Other Trade Receivables 1,549 2,261 (c) Client Funding Book 19,742 11,533 (d) Investments 1,213 1,095 (e) Other financial assets 7,661 1,862 Non-finan
Slide 30: Table Of Contents
Table Of Contents Q3 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 29
Slide 31: Board Of Directors
Board Of Directors Dinesh Thakkar Muralidharan Mala Todarwal Krishnaswamy Sridhar Kalyan Prasath Chairman and Managing Ramachandran Independent Director Independent Director Independent Director Director Independent Director • 35+ years experience in technology • 17+ years experience • Fellow member
Slide 32: Experienced Management Team (1/2)
Experienced Management Team (1/2) Dinesh Thakkar Vineet Agrawal Amit Majumdar Ravish Sinha Jyotiswarup Raiturkar Managing Director CFO ED – Strategic Initiatives CPTO CTO • Promoter of Angel Group • C.A., C.S., C.M.A • C.A. with 2+ decades of • N.I.T., Karnataka Computer • MS - Illinois Tech, Tech N
Slide 33: Experienced Management Team (2/2)
Experienced Management Team (2/2) Deepak Chandani Anuprita Daga Dr. Pravin Bathe Subhash Menon Saurabh Agarwal CDO Group CISO CL&CO CHRO Chief of New Business • IIT BHU • B.E., MBA (Information • Ph.D. (Banking & Fin.), MBA (Fin), • Doctorate in Management Studies • B.Tech - Comp. Sc., IIT-KGP, MBA
Slide 34: People Practices & Social Empowerment
People Practices & Social Empowerment Robust Employee Engagement Angel’s CSR Programmes Maharashtra Rajasthan Skilling and Digital and Gujarat placement of youth Financial Literacy Karnataka Delhi Great Place to Work Andhra Pradesh ✓ Ranked 52nd in Top 100 Best Companies to work for in India ✓ Liste
Slide 35: Awards & Accolades
Awards & Accolades Technology Industry Marketing Best Customer Centric Culture in ACEF Asian Leaders Award 2023 - Best Fintech hosted by expleo organised Best Performer in Equity Derivatives b Video Content for BFSI, Best Brand by Quantic at 2nd Annual Excellence (Retail) 2023- 24 by BSE Packaging f
Slide 36: Table Of Contents
Table Of Contents Q3 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 35
Slide 37: Proposed Group Restructuring: Preparing To Play The Long-Term Strategy
Proposed Group Restructuring: Preparing To Play The Long-Term Strategy Proposed Group Structure Common Tech & Product Broking: Broking: Lead Generation Development & Infra. Mutual Fund Distribution AMC Sponsor Assisted Business Direct Clients (Super App) 100% subsidiaries Angel Financial Mimansa Ang
Slide 38: Robust Client Additions
Robust Client Additions India: Incremental Demat Accounts Angel: Incremental Client Base (Mn) (Mn) +142% +121% -28% -10% 5.7 34.6 5.1 4.6 24.8 24.8 +341% +188% 2.3 14.3 5.0 0.5 FY20 FY21 FY22 FY23 9M '24 FY20 FY21 FY22 FY23 9M '24 Angel’s market share in incremental demat accounts in India 11% 16% 1
Slide 39: 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 505 bps Expansion In Market Share 14.3% 14.6% 14.8% 13.1% 11.2% 12.0% 10.1% 10.6% 9.7% Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Angel One’s Ranking In Incremental NSE Active Cl
Slide 40: Order Volumes Are Key Revenue Driver
Order Volumes Are Key Revenue Driver Trend Of Orders Angel One’s NSE Active Client Base (Mn) (Mn) 350 5.3 338 4.9 4.4 4.2 4.2 4.3 263 4.0 249 3.7 230 226 211 207 3.1 180 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 3rd
Slide 41: FinTech Model Successfully Weathering Market Volatility
FinTech Model Successfully Weathering Market Volatility Angel’s Average Daily Orders Increased In 22 Out Of 27 Instances, Where Either Index Corrected By >5% Over The Last 57 Months Period # of Trading Days Fall In Nifty 50 Fall In Nifty MidCap 150 Fall In Nifty Bank Change in Angel’s Avg Orders 18
Slide 42: Retail ADTO Market Share Across Segments
Retail ADTO Market Share Across Segments Overall Equity Market Share (%) 22.8% 24.5% 26.2% 26.8% 20.9% 21.0% 20.8% 21.7% 21.5% 1.3x Growth Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 F&O Market Share (%) 24.6% 26.2% 26.9% 20.9% 21.1% 20.8% 21.7% 21.6% 22.8% 1.3x Growth Q3 '22 Q4 '
Slide 43: FinTech Business Drives Multifold Increase In Client Activity
FinTech Business Drives Multifold Increase In Client Activity Flat Fee Dominates Overall ADTO 5% 4% 4% 4% 3% 2% 3% 2% 1% Traditional Plan 95% 96% 96% 96% 97% 98% 97% 98% 99% Flat Fee Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Strong Growth In Overall ADTO 40,000 Overall ADTO (₹ B
Slide 44: Client Activity: Number Of Orders & ADTO
Client Activity: Number Of Orders & ADTO Cash Segment F&O Segment Commodity Segment Cash ADTO (₹ Bn) No. Of Orders (Mn) F&O ADTO (₹ Bn) No. Of Orders (Mn) Commodity ADTO (₹ Bn) No. Of Orders (Mn) 60 74 80 40,000 300 400 16 264 262 14 70 35,000 350 14 50 62 250 12 57 59 11 60 30,000 215 300 12 199 48
Slide 45: Investor Relations Contacts
Company : Investor Relations Advisors : Angel One Ltd. 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.jain@sgapl.net / shrikant.sangani@sgapl.n