Angel One Limited · NSE:ANGELONE
Angel One — Q1 FY2024 Earnings Presentation
45 slides from Angel One's earnings presentation, Jul 13, 2023
Slide 1: Filing 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: Q1 '24 Investor Presentation
Q1 ‘24 Investor Presentation 13th July 2023
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: Table Of Contents
Table Of Contents Q1 ‘24 Business Model Performance Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 3
Slide 5: Q1 '24 Performance
Q1 ‘24 Performance Client Acquisition Metrics Active Client Metrics Transaction Metrics Financial Metrics 15.1 Mn (+9.3% QoQ) 4.4 Mn (+3.1% QoQ) 249 Mn (-5.4% QoQ) ₹ 6.3 Bn (-2.4% QoQ) Total Client Base NSE Active Client Base Number of Orders Total Net Revenue 1.3 Mn (+2.5% QoQ) 2nd (Maintained) ₹ 2
Slide 6: Featuring Amongst The Best Finance Apps In India
Featuring Amongst The Best Finance Apps In India Super App Ranks Amongst Top 15 Finance Apps Super App Ranks 5th In Finance Apps On iPad Overall NPS At Historic Best Playstore Appstore iPad Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 5
Slide 7: Super App: Smart & Seamless Onboarding
Super App: Smart & Seamless Onboarding F&O Activation Using Account Auto PAN Fetch Via Digio One Click DDPI Enablement Aggregator • Pioneering integration with account aggregator, CAMSFinserv; Amongst the early movers in the industry • Auto fetch of client’s bank statement, using Account Aggregator
Slide 8: Super App: Feature Enhancements
Super App: Feature Enhancements Revamped Options Watchlist Super Portfolio Enhanced Equity Watchlist Intuitive Notification Center 7
Slide 9: Value-added Charting Capabilities
Value-added Charting Capabilities Single Screen Multi-chart View On The Web Platform ✓ Released a new enterprise version of TradingView library + Expands chart types + Multipanel support + Optimizations for week & month candle look ups, etc. ✓ Focusing on building journey’s to enable clients to trad
Slide 10: Focus On Improving Client Experience
Focus On Improving Client Experience Launched SmartStore Key Tech Development Pipeline For FY24 ✓ SmartGTT is envisioned as an advanced conditional order platform ✓ Marketplace offering wide range of rule- ✓ A conversational orderpad where a statement is based apps, translated into an order via Larg
Slide 11: Advanced NXT 2.0 For Affiliates Channel
Advanced NXT 2.0 For Affiliates Channel No Downtime (Cloud Based) Intuitive & Responsive Mobile App Reliability Common Modules On Click View (Core Super App Super – App (Instant Data Loading) Integration) Speed Strategy NXT 2.0 Quick Development Agility Scalability High Capacity (Faster Go Live) (Au
Slide 12: Table Of Contents
Table Of Contents Q1 ‘24 Business Model Performance Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 11
Slide 13: 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 14: 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 15: 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 Q1 ’24 1,204 1,277 1,337 1,468 1,257 1,178 988 1,293 1,325 (‘000) <25 years >25 years 169 161 157 131 133 148 Tier 1 150 120 60% 5
Slide 16: Expanding Multi-Product Relationship
Expanding Multi-Product Relationship Intuitive Mutual Fund Product Unique SIPs Registered Experience Distribution Of Consumer Credit Products (‘000) 431 108 ❖ Aspire to offer the most frictionless experience 50 48 57 to clients ❖ Building proprietary AI/ML models using internal Q1 '23 Q2 '23 Q3 '23
Slide 17: Exploring Inorganic Growth Opportunities
Exploring Inorganic 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: 0
Slide 18: Table Of Contents
Table Of Contents Q1 ‘24 Business Model Performance Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 17
Slide 19: 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% 121 Mn 31 Mn 1.1 Bn 643 Mn (Jun ‘23) (Jun ‘23) 1.4 B
Slide 20: 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 (Mn) Q2 ’23 Q3 ’23 Q4 ’23 Q1 ’24 Others 23% 34% 34% 32% 30% Industry -0.66 -2.05 -2.66 -1.77 Industry de-grew but Angel One +0.16 +0.06 +0.04 +0.13 Angel continued to Top 5 Digita
Slide 21: 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 22: Regulations Have Strengthened Guardrails And Built Retail Confidence
Regulations Have Strengthened Guardrails And Built Retail Confidence Recently Introduced Regulations Up-streaming Of Client Funds To Clearing Corporations (CCs) ASBA: Optional For Clients • Funds can be up-streamed in the form of: • The facility is to be made live by 1st January 2024 • Transfer of b
Slide 23: Table Of Contents
Table Of Contents Q1 ‘24 Business Model Performance Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 22
Slide 24: Consolidated Financial Performance
Consolidated Financial Performance (₹ Mn) Gross Revenues EBDAT Profit After Tax Reported EBDAT Normalised EBDAT Reported PAT Normalised PAT Gross Broking Interest Income Other +18% +23% +22% 8,311 3,705 8,111 2,670 1,129 1,088 6,845 3,056 2,208 927 1,370 1,448 2,491 1,816 1,210 3,300 2,372 5,812 5,5
Slide 25: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Distribution Ancillary Transaction Charges Other Income 8% 1% 9% 1% 1% 8% 1% 1% 1% 4% 2% 3% 18% 16% 18% Q1 ‘23 Q4 ‘23 Q1 ‘24 69% 70% 69% Gross Broking Revenue Mix F&O Cash Commodity Currency 4% 1% 4% 1% 5% 0% 8% 10% 14% Q
Slide 26: Net Broking Revenue & Margin Profile
Net Broking Revenue & Margin Profile Reported EBDAT Normalised EBDAT Contribution to Net Broking Revenue EBDAT Margin* : Direct Channel (₹ Mn) Direct Channel Affiliate Channel 54% 53% 51% 51% 47% 48% 45% 46% 42% 4,159 3,952 48% 889 863 3,216 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1
Slide 27: 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 15,947 1,08,006 4.1% 4.0% 4.3% 97,473 96,537 9.7% 8.4% 8.1% 11,533 11,393 86.2% 87.6% 87.6%
Slide 28: 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 27
Slide 29: Consistently Paying Dividend
Consistently Paying Dividend Dividend Per Share (₹ / Share) 13.60 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 Particulars (₹ / Share) Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23 Q1 ’24
Slide 30: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ Mn) Q1 FY24 Q4 FY23 Q1 FY23 FY23 FY22 (a) Interest Income 1,448 1,370 1,211 5,195 3,653 (b) Fees and commission income 6,607 6,864 5,607 24,760 18,961 (c) Net gain on fair value changes 20 24 2 61 297 Total Revenue from operations (I) 8,075 8,258 6
Slide 31: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) June’23 Mar’23 Financial Assets (a) Cash, cash equivalents and Bank Balance 66,410 54,911 (b) Other Trade Receivables 2,299 2,261 (c) Client Funding Book 11,393 11,533 (d) Investments 1,119 1,095 (e) Other financial assets 3,106 1,862 Non-fina
Slide 32: Table Of Contents
Table Of Contents Q1 ‘24 Business Model Performance Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 31
Slide 33: 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 • 34+ years experience in technology • 15+ years experience • Fellow member
Slide 34: Experienced Management Team
Experienced Management Team Dinesh Thakkar Vineet Agrawal Prateek Mehta Jyotiswarup Raiturkar Ankit Rastogi Managing Director CFO CBO CTO CPO • Promoter of Angel Group • C.A., C.S., C.M.A • IIT-B, MBA - IIM-A • MS - Illinois Tech, Tech NIT Nagpur Comp. • B.E. (Computer Engineering) – Gold • Veteran
Slide 35: People Practices & Social Empowerment
People Practices & Social Empowerment Robust Employee Engagement Angel’s CSR Programmes Maharashtra Rajasthan Skilling and Digital and placement of youth Financial Literacy Gujarat Karnataka Delhi Great Place to Work ✓ Ranked 52nd in Top 100 Best Companies to work for in India Partner Non-Profit Org
Slide 36: Awards & Accolades
Awards & Accolades Technology Industry Marketing Recognition for being amongst India’s Gold Winner at ImageXX Award 2023 by Brand of the year at The Great India Best Workplaces in Fintech by Great Adgully for BFSI Service BFSI Awards 2023 Place to Work Bronze for SmartAPI in the Trading and Best Cus
Slide 37: Table Of Contents
Table Of Contents Q1 ‘24 Business Model Performance Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 36
Slide 38: Robust Client Additions
Robust Client Additions India: Incremental Demat Accounts Angel: Incremental Client Base +142% +121% -28% (Mn) -10% (Mn) 34.6 5.1 4.6 24.8 +341% +188% 2.3 14.3 1.3 6.0 5.0 0.5 FY20 FY21 FY22 FY23 Q1 '24 FY20 FY21 FY22 FY23 Q1 '24 Angel’s market share in incremental demat accounts in India 11% 16% 15
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 545 bps Expansion In Market Share 14.3% 13.1% 11.2% 12.0% 10.1% 10.6% 9.3% 9.7% 8.8% Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Angel One’s Ranking In Incremental NSE Active Clie
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) 263 4.4 4.2 4.2 4.3 249 4.0 230 226 3.7 211 207 180 3.1 152 2.5 137 2.0 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 3rd 3rd 3
Slide 41: FinTech Model Successfully Weathering Market Volatility
FinTech Model Successfully Weathering Market Volatility Angel’s Average Daily Orders Increased In 21 Out Of 25 Instances, Where Either Index Corrected By >5% Over The Last 51 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 (%) 24.5% 22.7% 22.8% 21.2% 20.9% 21.0% 21.7% 21.5% 20.8% 1.1x Growth Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 F&O Market Share (%) 24.6% 22.9% 22.8% 21.3% 20.9% 21.1% 20.8% 21.7% 21.6% 1.1x Growth Q1 '22 Q2 '
Slide 43: FinTech Business Drives Multifold Increase In Client Activity
FinTech Business Drives Multifold Increase In Client Activity Flat Fee Dominates Overall ADTO 8% 5% 5% 4% 4% 4% 3% 2% 3% Traditional Plan 92% 95% 95% 96% 96% 96% 97% 98% 97% Flat Fee Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Strong Growth In Overall ADTO 30,000 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) 70 70 25,000 250 300 14 57 59 215 199 55 57 60 60 11 12 250 20,000 200 10 48 48 172 50 50 173 9 10 44 20
Slide 45: Company and Investor Relations Advisors
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