Angel One Limited · NSE:ANGELONE
Angel One — Q1 FY2023 Earnings Presentation
45 slides from Angel One's earnings presentation, Jul 14, 2022
Slide 1: Exchange filing cover letter
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/Mad
Slide 2: Q1 '23 Investor Presentation
Q1 ‘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: Q1 '23: Sustainable And Resilient Performance
Q1 ‘23: Sustainable And Resilient Performance 14.4% 13.0% 51 bps 10.8% 1.3 million 10.4 million Share in India’s Demat ₹ 6,865 million Gross Client Acquisition Total Client Base Accounts Gross Revenues 10.0% 1 position 43 bps 2nd 10.6% 4.0 million Largest in Incremental Share in NSE Active NSE Activ
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 KYC 2.0
Seamless KYC 2.0 Implements principles of Improved UX for faster and more Equipped with real time validations Intuitive and user centric journey progressive disclosures to reduce efficient account opening DIY & assimilates feedback cognitive load journey 5
Slide 7: Simplified Homepage And Trade Execution Journey
Simplified Homepage And Trade Execution Journey Simplified Homepage • Market Performance • Client Portfolio Performance • Fund Transfer Option Trade • 3rd Party Distribution Services Execution • Advisory Card • Tools like InstaTrade, GTT, Stock SIP, 3rd Party Apps • Learning Center 6
Slide 8: Analytics Of Portfolio
Analytics Of Portfolio Analyse the portfolio based on • Market Capitalisation • Sectors • Holding Concentration 7
Slide 9: Transparent Back Office
Transparent Back Office One tap view of Trade / Non-Trade Revamped the entire post trade Profit & Loss in calendarized view, charges levied by broker, Jargon free statements for easier services with DASH as a new improved visual of profit & loss intermediaries and Government understanding by our cli
Slide 10: Easy To Use Web Platform
Easy To Use Web Platform Watchlist Portfolio Funds Reports Advisory Markets 9
Slide 11: Tech Innovation Focused On Building Efficiency
Tech Innovation Focused On Building Efficiency ₹ Payment Gateway Real Time Billing • Architectural changes Ruggedization made to the entire Payment • Optimised process to build efficiencies • Removed tech debt, built Gateway structure, leading to: • Billing process time efficiencies in back end Broa
Slide 12: Digital First Approach
Digital First Approach ww.
Slide 13: 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 14: 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 15: Huge Untapped Potential
~ «\ AngelOne 4 Huge Untapped Ww
Slide 16: India, Largely Underpenetrated Market
India, Largely Underpenetrated Market Steady Growth In Demat Accounts In India Rising Penetration Of Demat Accounts In India (Mn) 17.9% CAGR 6.9% 97 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 Q1 F
Slide 17: 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% 30% 27% 31% Others 34% 34% Top 5 77% 76% 77% Digital 74% 69% 66% 66% 68% 70% 73% 69% Brokers* Q1 '21 Q1 '22 Q1 '23 Q2 '21 Q2 '22 FY22 Q3 '22 Q4 '22 FY21 Q3 '21 Q4 '21 Top 5
Slide 18: 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 19: Digital Business Driving Exponential Growth For Angel
Digital Business Driving Exponential Growth For Angel
Slide 20: 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 4th 4th 4th 4th 3rd 3rd 3rd 4th 4th 307 bps Improvement In Active Client Ratio Rank (Mn) 39.3% 39.7% 38.7% 4.0 37.5% 38.3% 38.0% 37.4% 37.8% 3.7 3
Slide 21: 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% 16.1% 12.3% 8.2% 2.5x Growth Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 F&O Market Share (%) 20.9% 22.9% 21.3% 20.9% 21.1% 20.8% 16.1% 12.1% 7.8% 2.7x Growth Q1 '21 Q2 '21
Slide 22: 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) 1,468 1,337 81 1,277 71 1,257 1,204 79 Tier 1: 1.7x Growth 82 62 509 956 476 Tier 2: 3.3x Growth 61 455 412 376 349 550 511 48 39 347 197 879 Tier 3: 4.
Slide 23: Digital, Driving Strong Client Acquisition
Digital, Driving Strong Client Acquisition 92% Of Gross Clients Added Under Flat Fee Plan 7% 8% 8% 8% 8% Traditional Plan 10% 10% 10% 10% (Driven by AP network) 90% 90% 90% 90% 93% 92% 92% 92% 92% Flat Fee Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Gross Client Addition 347 550 5
Slide 24: 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% Traditional Plan 16% 17% 7% 8% 27% (Driven by AP network) 93% 92% 95% 95% 96% 96% Flat Fee 73% 84% 83% Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Strong Growth In Overall ADT
Slide 25: 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 10,000 180 120 6 153 5 5 6 52 59 9,000 147 160 70 57 57 60 5
Slide 26: Digital Led Business Model Successfully Weathering Market Volatility
Digital Led Business Model Successfully Weathering Market Volatility Angel’s Average Daily Orders Increased In 17 Out Of 21 Instances, Where Either Index Corrected By >5% Over The Last 39 Months Period # of Trading Days Fall In Nifty 50 Fall In Nifty MidCap 150 Fall In Nifty Bank Change in Angel’s A
Slide 27: Financial Highlights
Financial Highlights w,
Slide 28: Q1 '23: Key Highlights
Q1 ‘23: Key Highlights 13% 9% 207 mn ₹ 17,450 mn Average Client Funding Book for QoQ Growth in Total Client Base QoQ Growth in Avg. Daily Turnover Number of Orders Q1’ 23 ₹ 6,865 mn ₹ 2,491 mn ₹ 2,426 mn ₹ 1,816 mn Stable Gross Revenues -10.9% QoQ decline in EBDAT -11.5% QoQ decline in PBT -11.3% Qo
Slide 29: 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 16,518 15,947 2.6% 2.0% 4.1% 15,241 97,473 6.8% 4.7% 9.7% 68,576 47,936 90.5% 93.2% 86.2% Q1
Slide 30: New Digital Model Showing Better Prospects
New Digital Model Showing Better Prospects Quarterly Average Revenue Per Client Significant Growth In Overall Client Base (₹) (Mn) 671 720 673 10.4 627 593 547 9.2 528 513 453 7.8 6.5 4.1 5.3 2.2 2.7 3.2 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '2
Slide 31: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Ancillary Transaction Revenue Distribution Other 2% 2% 3% 2% 1% 1% 3% 3% 4% 1% 1% 1% 2% 2% 1% 1% 2% 1% 1% 3% 5% 6% 6% 6% 8% 8% 16% 17% 14% 15% 6% 15% 17% 16% 16% 4% 18% 7% 7% 6% 6% 6% 4% 7% 6% 72% 70% 70% 68% 68% 67% 68%
Slide 32: Net Broking Revenue Contribution Mix
Net Broking Revenue Contribution Mix (₹ Mn) Age-wise Net Broking Revenue Split (8.6mn gross client addition since Jun’20) <2 years 2-5 years >5 years 3,218 3,216 2,745 265 259 2,312 248 2,055 221 507 597 1,788 200 425 1,303 1,329 182 364 1,016 170 151 321 343 150 276 2,071 2,447 2,361 260 1,512 1,72
Slide 33: 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 3,367 3,378 3,298 3,223 567 3,146 2,733 2,787 2,908 496 2,470 450 369 388 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q1 '21 Q2 '21 Q3 '21 Q4 '21
Slide 34: Leading To Significant Operating Leverage Benefits
Leading To Significant Operating Leverage Benefits Consolidated EBDAT (₹ Mn) 3.6x 2,795 2,491 2,256 1,663 1,839 1,463 1,043 1,093 696 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 EBDAT Margin : Flat Fee Plan EBDAT Margin : Traditional Plan 52% 67% 67% 49% 62% 63% 62% 45% 44% 44% 44
Slide 35: Consolidated Business Performance
Consolidated Business Performance (₹ Mn) Gross Revenues Profit After Tax Gross Broking Interest Income Other +13% 0% +24% -11% +13% 6,853 6,865 +13% +23% 2,048 6,071 1,031 948 +13% 1,816 +33% 5,382 +11% 936 +19% 1,646 1,063 1,210 4,745 +29% 888 +39% -1% 986 1,343 4,189 807 1,214 896 +55% -2% 721 3,1
Slide 36: Consistently Paying Dividend
Consistently Paying Dividend Dividend Per Share Dividend Payout 35% in FY2021 35% 35% 35% 37% 35% (₹ / Share) 9.25 7.50 7.65 7.00 5.70 5.15 4.15 1.21 Q1 '21 Q2 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Particulars (₹ / Share) Q1 ’21 Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Consoli
Slide 37: Financial Snapshot
Financial Snapshot (₹ Mn) Gross Revenues Cost To Net Income Profit After Tax 4,745 6,865 41.6% 44.1% 52.4% 52.9% 948 1,816 1,210 807 1,214 709 4,707 3,229 Q1 '22 Q1 '23 Q1 '22 Q1 '23 Q1 '22 Q1 '23 Gross Broking Interest Income Other Return on Average Equity; Q1 RoE Annualised Client Funding Book Bor
Slide 38: Summary Of Consolidated Profit & Loss Statement
Summary Of Consolidated Profit & Loss Statement Particulars (₹ Mn) Q1 FY23 Q4 FY22 Q1 FY22 FY22 FY21 (a) Interest Income 1,088 967 633 3,328 1,769 (b) Fees and commission income 5,607 5,739 3,889 18,961 10,778 (c) Net gain on fair value changes 2 7 104 297 89 Total Revenue from operations (I) 6,698
Slide 39: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) June’22 Mar’22 Financial Assets (a) Cash, cash equivalents and Bank Balance 47,681 48,750 (b) Other Trade Receivables 221 2,711 (c) Client Funding Book 15,947 16,518 (d) Investments 402 187 (e) Other financial assets 1,614 1,949 Non-financial
Slide 40: About Us
About Us
Slide 41: 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 20+ • 37+ years experience • Former Director on the boards of India First years of management ex
Slide 42: 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 43: Awards & Accolades
Awards & Accolades Technology Capital Markets Marketing Recognition for being amongst India’s YouTube campaign of the year at The Bronze for best PR in 'BFSI' category at Best Workplaces in Fintech by Great Great Indian BFSI Awards 2022 by BFSI Kaleido Award 2022 by ET Brand Equity Place to Work Dig
Slide 44: 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 45: Investor Relations Contacts
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