Angel One Limited · NSE:ANGELONE
Angel One — Q4 FY2024 Earnings Presentation
42 slides from Angel One's earnings presentation, Apr 17, 2024
Slide 1: Exchange filing cover letter for investor presentation
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/ Ma
Slide 2: Q4 '24 Investor Presentation
Q4 ‘24 Investor Presentation 17th April 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 Q4 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 3
Slide 5: Q4 '24 Performance
Q4 ‘24 Performance Client Acquisition Metrics Active Client Metrics Transaction Metrics Financial Metrics 22.2 Mn (+14.3% QoQ) 6.1 Mn (+14.5% QoQ) 471 Mn (+34.5% QoQ) ₹ 10.6 Bn (+28.2% QoQ) Total Client Base NSE Active Client Base Number of Orders Total Net Revenue 2.9 Mn (+17.2% QoQ) 2nd (Maintaine
Slide 6: Raised Rs 15 Bn From Marquee Investors Through QIP
Raised Rs 15 Bn From Marquee Investors Through QIP Strategically Positions The Company For Its Growth Trajectory Sharp Growth In Average Daily Orders, Outpacing RoE QIP Details FY’23 RoE: 47.5% FY’24 RoE: 43.3% • Issue Size : ₹ 15,000 Million +86% • Robust ~5x* demand of total issue size • SEBI Defi
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: Foraying Into Wealth Management
Foraying Into Wealth Management Wealth Management: Target Addressable Market Levers Of Growth UHNI Investment and Value-Added Services for Domain ~0.2 mn Tax Filers Wealth Management Segment > ₹10 Mn Annual Income | >US$ 5 mn AUM Captive tech expertise, leveraging India’s Tech HNI Financial Data Sta
Slide 9: Table Of Contents
Table Of Contents Q4 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 8
Slide 10: Sustainable Revenues From Clients
Sustainable Revenues From Clients Consistent Total Net Revenue From Every Cohort Actuals (₹ Mn) Gross Acquisition (Mn) FY20 FY21 FY22 FY23 FY24 • Since clients are acquired over 12 months in each fiscal, their credible behaviour is ascertained 13th month onwards Pre-FY20 3,589 3,358 3,606 3,439 3,68
Slide 11: Client Demography And Wealth Creation Journey
Client Demography And Wealth Creation Journey Consistently Acquiring Younger Clients ~89% Of Gross Client Addition Contributed By Tier 2, 3 & Beyond Cities In Q4 ’24 1,468 1,257 1,178 988 1,289 1,325 2,117 2,461 2,884 (‘000) <25 years >25 years 329 254 650 54% 52% 52% 225 553 490 Tier 1 169 132 148
Slide 12: Expanding Multi-Product Relationship
Expanding Multi-Product Relationship Unique SIPs Registered (‘000) 1,393 Consumer Credit Products 955 ❖ Building proprietary AI/ML models using internal and 725 external consumer data, to facilitate lending partners underwrite and collect better 431 108 ❖ Initial review of customer bureau data indic
Slide 13: 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 14: Table Of Contents
Table Of Contents Q4 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 13
Slide 15: 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% 151 Mn 41 Mn 1.1 Bn 656 Mn (Mar ‘24) (Mar ‘24) 1.4 B
Slide 16: 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 27% 23% 32% 30% 34% Industry Angel One +0.16 +0.06 +0.04 +0.13 de-grew but Angel Other Digital One Top 5 Digital Brokers* Brokers (Part of
Slide 17: Trade Volumes De-linked To Market Cycles
Trade Volumes De-linked To Market Cycles Consistent Improvement In NSE Trade Volumes Despite Market Volatility Over Last 17 Years FY23: Geopolitical 24,000 Tensions 110 Nifty 50: -1% FY16: Slowing China Trades: +92% 100 20,000 GDP, Greek Debt FY20: COVID-19 90 Number of Trades (Bn) FY12: High Inflat
Slide 18: Rising Holding Of Retail Investors In NSE Listed Companies
Rising Holding Of Retail Investors In NSE Listed Companies Ownership Pattern In NSE-listed universe • Individual investors’ direct Promoter (Indian + Promoter (Indian + Promoter (Indian + Promoter (Indian + 50.0% 50.8% 51.7% 51.2% holding in NSE listed Govt + Foreign) Govt + Foreign) Govt + Foreign)
Slide 19: Regulations Have Strengthened Guardrails And Built Retail Confidence
Regulations Have Strengthened Guardrails And Built Retail Confidence Regulations Have Positive Impact On The Industry Growth 600.0 200.0 Growth Growth 1.4x Demat | 2.2x ADTO 1.6x Demat | 4.6x ADTO 180.0 500.0 160.0 Up-streaming 461.4 400.0 of Client Funds 151.4 352.4 140.0 143.9 Margin 123.5 132.3 3
Slide 20: Table Of Contents
Table Of Contents Q4 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 19
Slide 21: Consolidated Financial Performance
Consolidated Financial Performance (₹ Mn) Gross Revenues EBDAT Profit After Tax Gross Broking Interest Income Other 57.6% 44.0% 44.8% Margin +63% +28% +27% 4,755 13,585 3,400 1,869 3,705 3,641 10,608 2,670 2,603 2,476 1,401 8,311 2,123 1,129 1,370 9,240 7,084 5,812 Q4 '23 Q3 '24 Q4 '24 Q4 '23 Q3 '24
Slide 22: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Distribution Ancillary Transaction Charges Other Income 9% 1% 8% 1% 8% 1% 1% 1% 1% 2% 4% 4% 16% 18% 20% Q4 ‘23 Q3 ‘24 Q4 ‘24 67% 68% 70% Gross Broking Revenue Mix F&O Cash Commodity Currency 4% 1% 5% 0% 4%0% 8% 11% 11% Q4
Slide 23: Net Broking Revenue & Margin Profile
Net Broking Revenue & Margin Profile Reported EBDAT Normalised EBDAT Contribution to Net Broking Revenue EBDAT Margin* : Direct Business Margins impacted due to (₹ Mn) Direct Business Assisted Business 53% 54% upfronting of acquisition cost 51% 51% 50% 45% 47% 41% 39% 6,856 48% 1,557 (23%) 5,144 Q4
Slide 24: 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 4.0% 4.7% 4.4% 1,15,110 19,742 8.4% 7.7% 6.9% 17,771 96,537 11,533 87.6% 87.5% 88.
Slide 25: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ Mn) Q4 FY24 Q3 FY24 Q4 FY23 FY24 FY23 (a) Interest Income 2,476 2,123 1,370 7,859 5,195 (b) Fees and commission income 11,089 8,447 6,864 34,792 24,760 (c) Net gain on fair value changes 8 20 24 66 61 Total Revenue from operations (I) 13,573 10,590
Slide 26: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Mar24 Mar’23 Financial Assets (a) Cash, cash equivalents and Bank Balance 98,443 54,911 (b) Other Trade Receivables 1,940 2,261 (c) Client Funding Book 17,771 11,533 (d) Investments 0 1,095 (e) Other financial assets 8,510 1,862 Non-financial
Slide 27: Table Of Contents
Table Of Contents Q4 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 26
Slide 28: 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+ yrs experience in business • 17+ years experience • Fellow member of
Slide 29: Experienced Management Team (1/2)
Experienced Management Team (1/2) Dinesh Thakkar Vineet Agrawal Amit Majumdar Ravish Sinha Jyotiswarup Raiturkar Ankit Rastogi Managing Director CFO ED – Strategic Initiatives CPTO CTO CPO • Promoter of Angel Group • C.A., C.S., C.M.A • C.A. with 2+ decades of • N.I.T., Karnataka Computer • MS - Ill
Slide 30: Experienced Management Team (2/2)
Experienced Management Team (2/2) Bhavin Parekh Anuprita Daga Meenal Maheshwari Shah Dr. Pravin Bathe Subhash Menon Devender Kumar Head – Ops., Risk & Group CISO Group General Counsel CL&CO CHRO Head – Online Revenue Surveillance • B.E., MBA (Information • BSL LLB, ILS Law College, Certified • Ph.D.
Slide 31: 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 32: Awards & Accolades
Awards & Accolades Technology Industry Marketing Best Customer Centric Culture in ACEF Asian Leaders Award 2023 - Best Fintech hosted by expleo organised Great Place to Work - Feb24-25 Video Content for BFSI, Best Brand by Quantic at 2nd Annual Excellence Packaging for BFSI and Grand Prix Awards 202
Slide 33: Table Of Contents
Table Of Contents Q4 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 32
Slide 34: 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 35: Robust Client Additions
Robust Client Additions India: Incremental Demat Accounts Angel: Incremental Client Base +49% +86% (Mn) (Mn) +142% -28% 36.9 8.5 34.6 +121% -10% 24.8 5.1 +188% 4.6 +341% 14.3 2.3 5.0 0.5 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Angel’s market share in incremental demat accounts in India 11%
Slide 36: 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 484 bps Expansion In Market Share 14.3% 14.6% 14.8% 15.0% 13.1% 11.2% 12.0% 10.1% 10.6% Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Angel One’s Ranking In Incremental NSE Active C
Slide 37: Order Volumes Are Key Revenue Driver
Order Volumes Are Key Revenue Driver Trend Of Angel One’s Orders Angel One’s NSE Active Client Base (Mn) (Mn) 471 6.1 5.3 350 4.9 338 4.3 4.4 4.2 4.2 4.0 263 3.7 249 230 226 211 207 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24
Slide 38: FinTech Model Successfully Weathering Market Volatility
FinTech Model Successfully Weathering Market Volatility Angel’s Average Daily Orders Increased In 23 Out Of 29 Instances, Where Either Index Corrected By >5% Over The Last 60 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 39: Retail ADTO Market Share Across Segments
Retail ADTO Market Share Across Segments Market share based on notional turnover for equity futures, Overall Equity Market Share (%) Market share based on notional turnover for equity derivatives premium turnover for equity options 21.0% 20.8% 21.7% 21.5% 22.8% 15.9% 16.5% 17.2% 18.1% Q4 '22 Q1 '23
Slide 40: FinTech Business Drives Multifold Increase In Client Activity
FinTech Business Drives Multifold Increase In Client Activity Flat Fee Dominates Overall ADTO 4% 4% 4% 3% 2% 3% 2% 1% 1% Traditional Plan 96% 96% 96% 97% 98% 97% 98% 99% 99% Flat Fee Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Strong Growth In Overall ADTO 471 60.0 Overall ADTO (₹
Slide 41: 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) 80 120 50,000 400 400 16 355 14 14 70 102 45,000 350 350 14 100 40,000 11 12 60 262 300 300 12 74 264 35
Slide 42: Company and Investor Relations Advisors contact details
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