Angel One Limited · NSE:ANGELONE
Angel One — Angel Broking — Q3 FY2021 Earnings Presentation
34 slides from Angel One's earnings presentation, Jan 28, 2021
Slide 1: Exchange filing cover letter
28th January, 2021 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: ANGELBRKG Scrip Code:
Slide 2: Earnings Call Invite
Earnings Call Invite We are pleased to invite you to the earnings call on January 29, 2021 to discuss performance of Angel Broking Limited for the quarter ended December 31, 2020. Conference call details: Name of the Event: Angel Broking Q3 FY21 Earnings Call Scheduled Date: Friday, January 29, 2021
Slide 3: Investor Presentation January 2021
Investor Presentation January 2021 1
Slide 4: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Angel Broking 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 securiti
Slide 5: One Of The Largest Digital Retail Broking House
One Of The Largest Digital Retail Broking House Active Clients Strong Growth In ADTO Robust Acquisition Pan India Coverage 4th Largest in NSE Active Clients ₹ 2,261 bn 510,809 No. 1 Stock broking house in Authorised average daily turnover in Q3 FY21 Gross acquisitions in Q3 FY21 38.3% Persons regist
Slide 6: Digitally Powered Business
Digitally Powered Business 8.0mn App downloads* 75%+ 5 mins Of all orders placed Avg. time taken to through mobile app onboard clients FULLY DIGITAL BUSINESS >99% 100% Orders executed Direct clients on- online by direct clients 3.7 mn boarded digitally Peak trades handled in Q3 ’21, demonstrating ro
Slide 7: Pioneered Robo-Advisory Through Our Flagship Product – ARQ
Pioneered Robo-Advisory Through Our Flagship Product – ARQ Provides equity investment advisory services Alpha-generating algorithms based on multiple fundamental and ARQ Provides superior risk-adjusted returns quantitative factors ARQ Prime Outperforms Key Indices Key Features Of ARQ Prime 1.4x Outp
Slide 8: Best In Class Product Suite
Best In Class Product Suite Seamless Experience Across Digital Platforms At Most Competitive Price Angel Broking Angel Broking Machine learning based advisory, ARQ Mobile App Web Straight through process for client on- ₹0 boarding within minutes For Equity Delivery. No Hidden Charges “ARQ” Advisory
Slide 9: End-To-End And Advanced Digital Experience
End-To-End And Advanced Digital Experience On-Boarding Engagement Daily Engagement Artificial Intelligence And Machine Learning Driven Client Engagement And Services Data science driven approach to micro-target many segments of diverse audience 5+ Channels of engagement with clients and help them pu
Slide 10: 4th Fastest Growing App In Finance Category
4th Fastest Growing App In Finance Category India Mobile App Stats: 2020 India is the 2nd 24.27 bn US$ 0.50 bn 650.66 bn largest market App downloads Consumer spend on apps Hours spent Globally in terms of hours spent Asia Pacific Region (Ranked based on YoY growth in Android Phone Time Spent among
Slide 11: Exponential Growth In Turnover Market Share Across Segments
Exponential Growth In Turnover Market Share Across Segments… Significant Gain In Retail F&O Turnover Market Share Expanding Retail Cash Turnover Market Share 16.1% 18.3% 17.3% 17.6% 12.1% 7.8% 13.8% 14.3% 14.0% 5.6% 6.7% 4.4% 12.7% 3.4% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 FY21 Q2 '21 Q3 '21 Q1 '20 Q2 '20
Slide 12: Driven By Multifold Increase In ADTO Across Segments
…Driven By Multifold Increase In ADTO Across Segments (₹ Bn) Strong Growth In Overall ADTO Significant Growth In Cash ADTO Robust F&O ADTO Growth 2,261 69 61 2,120 58 1,281 32 33 1,129 26 27 582 619 450 492 511 253 358 290 369 198 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q1 '20 Q2 '20 Q3 '20
Slide 13: Sustainable Growth Outperforming The Industry
Sustainable Growth Outperforming The Industry… Digitization continues to deliver sustainable long-term Robust Growth In Net Client Addition growth 8.3x COVID Lockdown Phase of Gradual Unlock (‘000) 540 492 340 212 177 192 227 170 141 132 147 110 127 91 107 59 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '2
Slide 14: Deepening Engagement With Clients
Deepening Engagement With Clients (All data for Q3 ’21) Total Client Base Gross Client Additions Tier-wise Gross Addition 18.3% 7.1% QoQ Direct Clients QoQ Direct Clients Tier I Tier II 2.14mn, 67% 0.39mn, 77% 0.04mn, 8% 0.19mn, 37% 3.19mn 0.51mn 0.51mn AP Clients AP Clients Tier III 1.05mn, 33% 0.1
Slide 15: Top Quartile Activity Of Clients
Top Quartile Activity Of Clients Share of Top 5 Players In NSE Active Clients Angel’s NSE Active Clients Angel’s Rank In NSE Active Client Base 8.3 8.8 10.8 12.2 14.2 16.0 (Mn) 1.2 49.6% 1.0 4th 4th 4th 47.1% 5th 43.9% 0.8 38.4% 40.8% 0.6 7th 7th 34.8% 0.4 0.4 FY18 FY19 FY20 Q1 '21 Q2 '21 Q3 '21 FY1
Slide 16: Q3 FY21: Key Highlights
Q3 FY21: Key Highlights 18% 76% 16.1% ₹ 5,705 mn QoQ Growth in Gross Client QoQ Growth in Avg. Daily 384 bps QoQ gain in Overall Average client funding book for Base Turnover Equity ADTO Market Share Q3 FY21 ₹ 732 mn ₹ 3,156 mn ₹ 1,093 mn ₹ 1,045 mn -1.8% QoQ Lower PAT -0.7% QoQ Lower Gross 4.8% QoQ
Slide 17: Financial Performance
Financial Performance Gross Revenue Mix Gross Broking Income Split Share in Net Brokerage 56% 14% 29% 70% 7% 1% 8% 71% 35% 8% 1% Broking Interest Depository Cash F&O Commodity Currency Distribution Other Direct Clients AP Clients Tier-wise Net Broking Income Split Age-wise Net Broking Income Split P
Slide 18: Impact Of New Margin Regulations
Impact Of New Margin Regulations Implementation Timeline Average Monthly Net Broking Income Overall ADTO (₹ Mn) (₹ Trn) % of Peak 2.6 Phases Implementation 492 Margin 434 443 2.3 408 429 1.9 Phase I 25% Dec’20 – Feb’21 339 1.3 Avg. ₹ 1.7 Trn Phase II 50% Mar’21 – May’21 0.6 Phase III 75% June’21 – A
Slide 19: Strong MTF Book Spread Over Wide Customer Base
Strong MTF Book Spread Over Wide Customer Base MTF Book Size Low Per Client Exposure MTF Book Segmentation (₹ Mn) (₹) 5,698 5,503 5,420 <₹ 0.1mn ₹ 0.1-0.5mn >₹ 0.5mn 55,388 2.2% 2.0% 2.1% 50,703 51,088 6.9% 6.6% 5.8% 91.0% 91.4% 92.1% Q3 '20 Q2 '21 Q3 '21 Q3 '20 Q2 '21 Q3 '21 Q3 '20 Q2 '21 Q3 '21 NI
Slide 20: Quarterly Financial Snapshot: Business momentum continues
Quarterly Financial Snapshot: Business momentum continues (₹ Mn) Total Income EBDAT Profit After Tax 1,855 1,996 2,466 3,179 3,156 35.7% 38.9% 43.0% 49.3% 49.3% TTM PAT: ₹ 2,287 mn 54.6% -1.8% 28.9% -0.7% 4.8% 49.9% 23.5% 411 505 48.2% 7.6% 546 41.5% 441 290 395 16.7% 16.6% 217 185 746 732 1,093 1,0
Slide 21: Financial Snapshot
Financial Snapshot (₹ Mn) Total Income Cost To Net Income Profit After Tax 5,551 8,801 13.2% 32.3% 74.1% 1,206 1,961 1,382 52.4% 525 1,369 6,212 542 3,657 9M '20 9M '21 9M '20 9M '21 9M '20 9M '21 Interest Income Return on Average Equity; RoE is Annualised Gross Broking Other *9M FY21 Networth inclu
Slide 22: Summary Of Consolidated Profit & Loss Statement
Summary Of Consolidated Profit & Loss Statement Particulars (₹ Mn) Q3 FY21 Q2 FY21 Q3 FY20 9M FY21 9M FY20 FY20 (a) Interest Income 381 493 358 1,224 1,228 1,577 (b) Fees and commission income 2,655 2,604 1,418 7,290 4,085 5,644 (c) Net gain on fair value changes 32 1 12 36 6 25 Total Revenue from o
Slide 23: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Dec’20 Sep’20 Mar’20 Financial Assets (a) Cash, cash equivalents and Bank Balance 21,371 25,996 14,136 (b) Trade Receivables 457 459 390 (c) Loans 6,045 6,272 2,806 (d) Investments 30 25 353 (e) Other financial assets 9,698 968 2,706 Non-finan
Slide 24: Way Forward
Way Forward Strengthen our leadership position to become the largest retail Augment our investment in our mobile platform, artificial broking business in India intelligence, machine learning capabilities & newer technologies Aim to become the largest retail broking firm in India, Enhance client
Slide 25: Angel Broking At A Glance
Angel Broking SMART LS Smart Money SAUDA Your Weekly Stock Market Update amplitiers <SmartAPI> Built by you ARO GEER ‘trade © ANGEL BEE A Angel Broking At A Glance
Slide 26: Strong Brand Equity Built Over Decades With Proven Track Record
Strong Brand Equity Built Over Decades With Proven Track Record Well Recognized In The Retail Broking Industry Lasting Focused Progressive Legacy Management Culture 22+ years of strong brand equity Driving force in achieving all- Consistently certified as “Great Place to amongst clients encompassing
Slide 27: Competitive Product and Service Offering to Meet Holistic Financial Needs of Clients
Competitive Product and Service Offering to Meet Holistic Financial Needs of Clients ₹ Simplified and competitive pricing Free Research & Advisory Margin Funding Fundamental | Technical | ARQ Seamless, Pre-approved limits Advisory at no additional charge Securities as collateral NIL fund transfer ch
Slide 28: Awards & Accolades
Awards & Accolades Technology Capital Markets Marketing Customer Service ‘Trendsetter’ Award at Gold in BFSI Category by Effectiveness by ACEF 9th NetApp - Innovations Buzzin Content Global Customer Award, 2019 Engagement Awards 2020 PR Awards 2020 for Digital First Organization Best Performing Reta
Slide 29: 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 Four Consecutive Years 2017 2018 2019 2020 Certified “India’s 20 Best Workplaces in BFSI – 2019” by Great Place To Work Overall culture score at par with top 50 companies in India Top 150 employees a
Slide 30: Board Of Directors
Board Of Directors Dinesh D. Thakkar Vinay Agrawal Ketan Shah Promoter, Chairman and MD Director and CEO Non-Executive Director Promoter of Angel Group Rich experience of 22+ yrs Veteran in capital markets with over 3 A qualified Chartered Accountant 26+ years of overall experience decades of experi
Slide 31: Experienced Management Team
Experienced Management Team Vinay Agrawal Vineet Agrawal Nilesh Gokral Rohit Ambosta Chief Executive Chief Financial Chief Operating Chief Information Officer Officer Officer Officer Rich experience of 22+ yrs, of 24+ yrs of total experience 18+ yrs of total experience, 2+ 20 yrs of total experience
Slide 32: Financialization, Digitization and Demographic Shift – Key Drivers of Indian economy
Financialization, Digitization and Demographic Shift – Key Drivers of Indian economy Proportion of shares and debentures as % of household savings Moderation in inflation CPI inflation Demat accounts growth 3.3% 3.0% 26.6% 1.9% 14.7% 1.6% 1.6% 1.6% 12.5% 13.8% 9.0% 9.4% 8.7% 9.8% 6.8% 4.8% 4.6% 3.6%
Slide 33: Growing Equity Culture In India
Growing Equity Culture In India Nifty Returns Over The Past Decade Nifty MidCap Returns Over The Past Decade 62.6% 75.0% 57.6% 26.7% 36.1% 18.0% 18.5% 11.1% 7.3% 10.2% 14.9% 3.4% 15.8% 15.8% 2.7% -6.1% -3.2% -1.4% -9.2% -8.9% -30.9% -26.0% Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-
Slide 34: Thank You
Thank You Company : Investor Relations Advisors : Angel Broking Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – U67120MH1996PLC101709 CIN - U74140MH2010PTC204285 Mr. Hitul Gutka – Head IR Mr. Shogun Jain / Mr. Shrikant Sangani Email Id – hitul.gutka@angelbroking.com shogun.jain@sgapl.net / shrikant.s