Angel One Limited · NSE:ANGELONE
Angel One — Q4 FY2022 Earnings Presentation
43 slides from Angel One's earnings presentation, Apr 20, 2022
Slide 1: Exchange filing cover letter
Certified 2 AngelOne 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
Slide 2: Q4 '22 Investor Presentation
Q4 ‘22 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: Q4 '22: Delivering Robust Margins, While Continuing To Scale New Highs
Q4 ‘22: Delivering Robust Margins, While Continuing To Scale New Highs 9.8% 18.4% 62bps 1.5 million 10.3% 9.2 million ₹ 6,853 million Gross Client Share in India’s Demat Total Client Base Gross Revenues Acquisition Accounts 19.5% 1 position 45bps ~3.7 million 3rd 10.1% ₹ 2,048 million NSE Active Cli
Slide 5: Q4 '22: Tech & Product Developments
Q4 ‘22: Tech & Product Developments Technology Product • Ruggedization of key backend services Improving Client Experience • Dual track execution of enhancing current live apps as well as building upcoming Super App • 3 major releases to a closed group to test our • Lower contact ratio • Built intui
Slide 6: Tech Innovations, Building Efficiency
Tech Innovations, Building Efficiency Data Backend Tech Ruggedisation Monitoring Centers Platform • Steps taken to improve • Set up monitoring / alerting • Invested in setting up new • Un-boxed outmoded systems processes, surgical fixes and mechanism for various state-of-the-art Data Centers • Data
Slide 7: Product Innovation, Improving Overall Client Experience
Product Innovation, Improving Overall Client Experience • Flexibility to choose between Quarterly or Monthly settlement of funds Client 2x Onboarding • Option to add a nominee during KYC journey Growth in conversion rate for • Process flow to enable smoother reactivation of users Insta-Trade Trade •
Slide 8: Digital First Approach
| Digital First Approach | SZ
Slide 9: Using Technology To Provide Best Experience To Clients
Using Technology To Provide Best Experience To Clients 100% 99% 75%+ Digital Acquisition of Direct Clients Orders Executed Online By Direct Clients Orders Placed through Mobile App Digital Properties Built In-house For Diverse And Growing Client Base Created An Open Architecture To Seamlessly Integr
Slide 10: Best In Class Product Suite
Best In Class Product Suite Seamless Experience Across Digital Platforms At Most Competitive Price Machine learning based advisory, ARQ Angel One Mobile ₹0 Angel One Web Straight through process for client on-boarding App within minutes Building financial ecosystem through strategic For Equity Deliv
Slide 11: Competitive Product And Service Offering To Meet Holistic Financial Needs Of Clients
Competitive Product And Service Offering To Meet Holistic Financial Needs Of Clients Free Research & Advisory Fundamental | Technical | ARQ Advisory at no additional charge ₹ Margin Trade Funding Seamless, Real-time limits, basis MTM collaterals Securities as collateral F&O trading possible with del
Slide 12: Huge Untapped Potential
~ «\ AngelOne Huge Untapped | Potential
Slide 13: India, Largely Underpenetrated Market
India, Largely Underpenetrated Market Steady Growth In Demat Accounts In India Rising Penetration Of Demat Accounts In India (Mn) 17.5% CAGR 6.4% 90 Inflection Point 4.1% 55 2.7% 3.1% 36 41 2.4% 32 1.8% 2.0% 2.1% 23 25 28 1.7% 1.7% 21 22 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY13 FY14 FY
Slide 14: Digital Brokers Outpacing Competition
Digital Brokers Outpacing Competition Share Of Top 5 Digital Brokers In Incremental NSE Active Clients 23% 26% 24% 31% 23% 32% 27% 31% Others 34% 34% 47% Top 5 77% 76% 77% Digital 74% 69% 66% 66% 68% 73% 69% 53% Brokers* FY21 Q2 '21 Q2 '22 Q3 '22 FY22 Q3 '21 Q1 '22 Q1 '21 Q4 '20 Q4 '22 Q4 '21 Top 5
Slide 15: 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 16: Digital Business Driving Exponential Growth For Angel
Digital Business Driving Exponential Growth For Angel
Slide 17: Angel Gaining Market Share In NSE Active Client Base
Angel Gaining Market Share In NSE Active Client Base Rapidly Growing NSE Active Client Base Of Angel Share Of Active Clients In Total Client Base Angel’s 5th 4th 4th 4th 4th 3rd 3rd 3rd 4th 794bps Improvement In Active Client Ratio Rank (Mn) 3.7 39.3% 39.7% 3.1 37.5% 38.3% 38.0% 37.4% 37.8% 35.6% 2.
Slide 18: Retail ADTO Market Share Across Segments
Retail ADTO Market Share Across Segments Overall Equity Market Share (%) 20.8% 22.7% 21.2% 20.9% 20.9% 16.1% 12.3% 6.9% 8.2% 3.5x Growth Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Jan - Feb'22 F&O Market Share (%) 20.9% 22.9% 21.3% 20.9% 21.2% 16.1% 12.1% 6.7% 7.8% 3.2x Growth Q4 '20 Q1
Slide 19: Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities
Digital, Facilitates Penetration Into Tier 3 And Tier 2 Cities >94% Of Gross Client Addition Contributed By Tier 3 & Tier 2 Cities In Q4 ’22 (‘000) 1,468 1,337 81 1,277 71 1,204 79 Tier 1: 3.3x Growth 82 509 956 476 Tier 2: 6.0x Growth 61 376 455 349 550 511 48 39 347 879 197 188 746 743 790 Tier 3:
Slide 20: Digital Transformation Driving Strong Client Acquisition
Digital Transformation Driving Strong Client Acquisition 92% Of Gross Clients Added Under Flat Fee Plan 7% 8% 8% 8% Traditional Plan 19% 10% 10% 10% 10% (Driven by AP network) 90% 90% 90% 90% 93% 92% 92% 92% 81% Flat Fee Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Gross Client Add
Slide 21: Digital Business Drives Multifold Increase In Client Activity
Digital Business Drives Multifold Increase In Client Activity Flat Fee Dominates Overall ADTO 5% 5% 4% Traditional Plan 16% 17% 7% 8% 27% 27% (Driven by AP network) 93% 92% 95% 95% 96% Flat Fee 73% 73% 84% 83% Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Strong Growth In Overall AD
Slide 22: Strong Growth In Client Activity Across Segments
Strong Growth In Client Activity Across Segments 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 9,000 160 120 6 147 5 5 52 59 57 8,000 70 57 55 60 140 40 10
Slide 23: Digital Led Business Model Successfully Weathering Market Volatility
Digital Led Business Model Successfully Weathering Market Volatility Angel’s Average Daily Orders Increased In 16 Out Of 19 Instances, Where Either Index Corrected By >5% Over The Last 36 Months Period # of Trading Days Fall In Nifty 50 Fall In Nifty MidCap 150 Fall In Nifty Bank Change in Angel’s A
Slide 24: Financial Highlights
| Financial Highlights | KJ
Slide 25: Q4 '22: Key Highlights
Q4 ‘22: Key Highlights 18% 24% 17% ₹ 15,934 mn Average Client Funding Book for QoQ Growth in Total Client Base QoQ Growth in Avg. Daily Turnover QoQ Growth in Number of Orders Q4’ 22 ₹ 6,853 mn ₹ 2,795 mn ₹ 2,743 mn ₹ 2,048 mn 12.9% QoQ Growth in Gross Revenues 23.9% QoQ Growth in EBDAT 24.2% QoQ Gr
Slide 26: 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) (₹) 66,485 <₹ 0.1mn ₹ 0.1-0.5mn >₹ 0.5mn 16,518 2.6% 1.5% 2.0% 15,144 3.4% 7.0% 4.7% 47,936 11,686 38,065 90.4% 95.0% 93.2% Q4
Slide 27: New Digital Model Showing Better Prospects
New Digital Model Showing Better Prospects Quarterly Average Revenue Per Client Significant Growth In Overall Client Base (₹) (Mn) 9.2 720 7.8 618 671 627 673 593 6.5 547 528 513 5.3 4.1 2.7 3.2 1.8 2.2 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21
Slide 28: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Ancillary Transaction Revenue Distribution Other 2% 2% 3% 4% 3% 2% 1% 2% 3% 2% 1% 1% 1% 1% 2% 2% 1% 1% 2% 2% 3% 6% 6% 6% 6% 8% 20% 16% 17% 14% 5% 16% 16% 5% 15% 15% 6% 17% 6% 6% 4% 7% 7% 7% 6% 69% 72% 70% 70% 68% 68% 67%
Slide 29: Net Broking Revenue Contribution Mix
Net Broking Revenue Contribution Mix (₹ Mn) Age-wise Net Broking Revenue Split (7.6mn gross client addition since Mar’20) <2 years 2-5 years >5 years 3,218 2,745 2,312 265 2,055 248 507 1,788 221 1,303 1,329 200 425 1,016 182 364 755 170 151 321 343 121 150 260 2,071 2,447 239 276 1,285 1,512 1,727
Slide 30: 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 3,367 3,378 3,298 3,146 567 2,733 2,787 2,908 2,401 2,470 496 450 369 388 343 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q4 '20 Q1 '21 Q2 '21 Q3 '21
Slide 31: Leading To Significant Operating Leverage Benefits
Leading To Significant Operating Leverage Benefits Consolidated EBDAT (₹ Mn) 5.7x 2,795 2,256 1,663 1,839 1,463 1,043 1,093 696 492 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 EBDAT Margin : Flat Fee Plan EBDAT Margin : Traditional Plan High Growth Stabilised 52% 67% 49% 62% 63% 6
Slide 32: Consolidated Business Performance
Consolidated Business Performance (₹ Mn) Gross Revenues Profit After Tax Gross Broking Interest Income Other +13% +24% +13% Includes tax impact Despite 6% lesser 6,853 of ₹ 36 mn for trading days +13% 2,048 earlier years +23% +13% 6,071 1,031 +33% +11% 5,382 936 1,646 +19% 1,063 4,745 +29% 888 +39%
Slide 33: Consistently Paying Dividend
Consistently Paying Dividend Dividend Per Share Dividend Payout 35% in FY2021 35% 35% 35% 37% (₹ / Share) 9.25 7.50 7.00 5.70 5.15 4.15 1.21 Q1 '21 Q2 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Particulars (₹ / Share) Q1 ’21 Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Consolidated Book Value Per Sh
Slide 34: Financial Snapshot
Financial Snapshot (₹ Mn) Gross Revenues Cost To Net Income Profit After Tax 12,990 23,051 34.6% 46.0% 54.2% 6,251 3,661 50.3% 3,653 1,927 2,981 1,998 15,736 9,065 FY '21 FY '22 FY '21 FY '22 FY '21 FY '22 Gross Broking Interest Income Other Return on Average Equity Client Funding Book Borrowings Ne
Slide 35: Summary Of Consolidated Profit & Loss Statement
Summary Of Consolidated Profit & Loss Statement Particulars (₹ Mn) Q4 FY22 Q3 FY22 Q4 FY21 FY22 FY21 (a) Interest Income 967 913 545 3,328 1,769 (b) Fees and commission income 5,739 4,969 3,488 18,961 10,778 (c) Net gain on fair value changes 7 92 53 297 89 Total Revenue from operations (I) 6,713 5,
Slide 36: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Mar’22 Mar'21 Financial Assets (a) Cash, cash equivalents and Bank Balance 48,750 18,774 (b) Other Trade Receivables 2,711 1,876 (c) Client Funding Book 16,518 11,686 (d) Investments 187 55 Higher margin with (e) Other financial assets 1,949 1
Slide 37: Way Forward
Way Forward Strengthen our leadership position to become the largest retail broking house in India Largest Retail Broking House Establish a substantial client base in investment advisory business to support growth Establish Investment Advisory Robust Technology Infrastructure Augment investment in m
Slide 38: About Us
About Us
Slide 39: Board Of Directors
Board Of Directors Muralidharan Uday Sankar Roy Kamalji Sahay Ramachandran Independent Director Independent Director Independent Director • 39+ years experience • 32+ years of IT industry experience with • 37+ years experience • Former Director on the boards of India First Life Insurance, CAMS Ins R
Slide 40: Experienced Management Team
Experienced Management Team Narayan Gangadhar Jyotiswarup Raiturkar Ankit Rastogi Vineet Agrawal Prabhakar Tiwari Chief Executive Chief Technology Chief Product Chief Financial Chief Growth Officer Officer Officer Officer Officer • MS in Computer Science • MS - Illinois Tech, Tech NIT • B.E. (Comput
Slide 41: Awards & Accolades
Awards & Accolades Technology Capital Markets Marketing Bronze for SmartAPI in the Trading and Gold in Excellence in Communication in Exchange cateogry for the 'Launch of a Silver for Angel Academy at Echo the BFSI Services at ImageXX awards disruptive product' at the ET Brand Awards organized by DM
Slide 42: Consistently Certified By The Great Place To Work
Consistently Certified By The Great Place To Work Certified By The Great Place To Work Institute For Five Consecutive Years 2017 2018 2019 2020 2021 2022 Recognised amongst “India’s Best Workplaces in BFSI 2022” by Great Place To Work Featured amongst the top 30 companies in BFSI Top 230 employees a
Slide 43: Investor Relations 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