Angel One Limited · NSE:ANGELONE
Angel One — Q3 FY2023 Earnings Presentation
39 slides from Angel One's earnings presentation, Jan 16, 2023
Slide 1: Covering 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 Sir/ Ma
Slide 2: Q3 '23 Investor Presentation
Q3 ‘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: Q3 '23: Robust Performance
Q3 ‘23: Robust Performance 16.2% 8.1% 28 bps 11.6% 1.0 million 12.5 million ₹ 7,597 million Share in India’s Demat Gross Client Acquisition Total Client Base Gross Revenues Accounts 1.4% Maintained 81 bps 2nd 12.0% 4.2 million ₹ 2,280 million Largest in Incremental Share in NSE Active NSE Active Cli
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: Super App Released For Android Clients
Super App Released For Android Clients Early Trends Depict Better NPS For Super App Improvement in App Rating on Playstore (For Android Only) Old App Super App Oct '22 Dec '22 Lower Contact Ratio On New App Steady Per Client Orders High acceptance: No compromise in per client orders Driven by innova
Slide 7: Product Enhancements Focused On Improving Overall Client Experience
Product Enhancements Focused On Improving Overall Client Experience • Live for a certain set of Android clients KYC 2.0 • Built a completely new experience for web / mobile web clients • Features like real-time selfie capture & on-screen signature for both direct and AP clients • Next gen partner to
Slide 8: Tech Innovation To Build Efficiency
Tech Innovation To Build Efficiency Security • Rolled out 2FA Client Data Platform authentication which has • Developed in-house a best- level of security centralised platform which Ruggedisation • Continue to work with curates signals from Data Science • Tested out high-availability various agencie
Slide 9: Huge Untapped Potential
~ «\ AngelOne 4 Huge Untapped Ww
Slide 10: India, Largely Underpenetrated Market
India, Largely Underpenetrated Market India: Target Addressable Market India Population - 2021 India Individual PAN Card Holders India Demat Accounts India NSE Active Clients (Mn) 950 362 108 Mn 35 Mn 1,407 587 Mn (Dec ‘22) (Dec ‘22) Mn (Oct ‘22) 7.7% of total 2.5% of total population population 96
Slide 11: Digital Brokers Outpacing Competition
Digital Brokers Outpacing Competition Share Of Top 5 Digital Brokers In Incremental NSE Active Clients Others 24% 31% 23% 32% 30% 34% 34% 61% 54% Degrowth in Industry’s Active Client Base 76% 69% 77% 68% 70% Angel One added 0.2 mn Top 5 Digital Brokers* 66% 66% 39% 46% & 0.1 mn active clients in Q2
Slide 12: 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 13: Digital Business Driving Exponential Growth For Angel
Digital Business Driving Exponential Growth For Angel
Slide 14: 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 Improving Share In Incremental NSE Active Client Base 439 bps Expansion In Market Share 2nd Largest Industry Industry Angel is amongst the few players to add to its NSE active client base -2.0 mn -0
Slide 15: 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% 21.7% 21.5% 16.1% 1.3x Growth Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 F&O Market Share (%) 20.9% 22.9% 21.3% 20.9% 21.1% 20.8% 21.7% 21.6% 16.1% 1.3x Growth Q3 '21 Q4 '
Slide 16: 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 Q3 ’23 (‘000) 1.9x Growth 1,468 1,337 81 1,277 71 1,257 1,204 1,178 79 62 82 57 509 956 988 476 412 61 376 455 385 47 Tier 1: 1.2x Growth 332 Tier 2: 1.8x Growth 349
Slide 17: Digital, Driving Strong Client Acquisition
Digital, Driving Strong Client Acquisition 94% Of Gross Clients Added Under Flat Fee Plan 9% 8% 6% 7% 7% 7% 5% 5% 6% Traditional Plan (Driven by AP network) 91% 92% 94% 93% 93% 93% 95% 95% 94% Flat Fee Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Gross Client Addition 511 956 1,204
Slide 18: 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% 4% 3% Traditional Plan 17% 7% 8% (Driven by AP network) 93% 92% 95% 95% 96% 96% 96% 97% Flat Fee 83% Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Strong Growth In Overall ADTO
Slide 19: Strong Growth In Client Activity
Strong Growth In Client Activity 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 70 16,000 200 200 9 10 172 52 59 173 180 180 9 70 57 57 55 60 14,000 8 153 160 160 8 60 48 48 12,000 147 50 1
Slide 20: Digital Led Business Model Successfully Weathering Market Volatility
Digital Led Business Model Successfully Weathering Market Volatility Angel’s Average Daily Orders Increased In 19 Out Of 23 Instances, Where Either Index Corrected By >5% Over The Last 45 Months Period # of Trading Days Fall In Nifty 50 Fall In Nifty MidCap 150 Fall In Nifty Bank Change in Angel’s A
Slide 21: Financial Highlights
Financial Highlights w,
Slide 22: Q3 '23: Key Highlights
Q3 ‘23: Key Highlights 8% 19% 226 mn ₹ 14,156 mn QoQ Growth in Total Client Base QoQ Growth in Avg. Daily Turnover Number of Orders Average Client Funding Book ₹ 7,597 mn ₹ 3,099 mn ₹ 3,019 mn ₹ 2,280 mn 1.8% QoQ Growth Gross Revenues 5.9% QoQ Growth in EBDAT 5.7% QoQ Growth in PBT 6.8% QoQ Growth i
Slide 23: 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) (₹) 16,687 <₹ 0.1mn ₹ 0.1-0.5mn >₹ 0.5mn 1.5% 4.9% 4.1% 15,144 1,17,314 3.4% 13,773 11.0% 8.8% 1,02,280 95.0% 84.2% 87.0% 38,0
Slide 24: New Digital Model Showing Better Prospects
New Digital Model Showing Better Prospects Quarterly Average Revenue Per Client Significant Growth In Overall Client Base (₹) (Mn) 12.5 11.6 620 669 588 9.2 10.4 544 525 511 7.8 451 430 398 6.5 4.1 5.3 3.2 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3
Slide 25: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Ancillary Transaction Revenue Distribution Other 2% 2% 1% 1% 0% 2% 2% 3% 2% 1% 1% 2% 1% 1% 1% 1% 1% 2% 5% 6% 6% 6% 8% 8% 9% 8% 14% 6% 16% 16% 18% 17% 15% 15% 17% 4% 4% 4% 18% 4% 7% 6% 6% 6% 6% 71% 68% 68% 67% 69% 70% 69%
Slide 26: Net Broking Revenue Contribution Mix
Net Broking Revenue Contribution Mix (₹ Mn) Age-wise Net Broking Revenue Split (9.7mn gross client addition in the last 2 years) <2 years 2-5 years >5 years 3,580 3,532 3,218 3,216 301 307 2,745 265 259 2,312 248 507 811 900 Growth in 2,055 597 1,788 200 221 425 revenue from 2-5 1,329 182 364 years
Slide 27: Technology Adoption: Enhancing Quality And Scalability
Technology Adoption: Enhancing Quality And Scalability Employee Base Scaling Up Digital Focused Talent Pool (Nos) (Nos) 3,367 3,378 3,298 3,223 663 3,146 3,120 3,112 609 610 630 633 2,908 603 2,787 567 496 450 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q3 '21 Q4 '21 Q1 '22 Q2 '22
Slide 28: Leading To Significant Operating Leverage Benefits
Leading To Significant Operating Leverage Benefits Consolidated EBDAT (₹ Mn) 2.8x 2,926 3,099 2,795 2,491 2,256 1,663 1,839 1,464 1,093 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 EBDAT Margin : Flat Fee Plan EBDAT Margin : Traditional Plan 53% 50% 53% 68% 67% 49% 64% 63% 63% 62%
Slide 29: Consolidated Business Performance
Consolidated Business Performance (₹ Mn) Gross Revenues Profit After Tax Gross Broking Interest Income Other +9% +2% +7% +13% +0% +18% +24% +13% 7,459 7,597 -11% 2,280 6,835 6,845 2,136 +14% 1,029 1,126 +23% 2,048 +13% 6,053 1,012 927 +11% 1,816 +33% 5,361 1,244 1,371 917 +19% 1,646 1,063 1,210 4,72
Slide 30: Consistently Paying Dividend
Consistently Paying Dividend Dividend Per Share Dividend Payout 35% in FY2021 35% 35% 35% 37% 35% 35% 35% (₹ / Share) 9.25 9.00 9.60 7.50 7.65 7.00 5.15 5.70 4.15 Q2 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Particulars (₹ / Share) Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Q
Slide 31: 9M '23 Financial Snapshot
9M ’23 Financial Snapshot (₹ Mn) Gross Revenues Cost To Net Income Profit After Tax 16,136 21,900 43.7% 45.6% 51.8% 3,082 6,232 49.6% 3,825 2,569 4,203 2,591 14,993 10,976 9M '22 9M '23 9M '22 9M '23 9M '22 9M '23 Gross Broking Interest Income Other Return on Average Equity; 9M RoE Annualised Client
Slide 32: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ Mn) Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 FY22 FY21 (a) Interest Income 1,069 959 913 3,116 2,361 3,328 1,769 (b) Fees and commission income 6,092 6,197 4,969 17,896 13,222 18,961 10,778 (c) Net gain on fair value changes 23 12 92 37 291 297 89 T
Slide 33: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Dec’22 Mar’22 Financial Assets (a) Cash, cash equivalents and Bank Balance 62,135 48,750 (b) Other Trade Receivables 255 2,711 (c) Client Funding Book 13,773 16,518 (d) Investments 1,037 187 (e) Other financial assets 5,876 1,947 Non-financial
Slide 34: About Us
About Us
Slide 35: Board Of Directors
Board Of Directors Dinesh D. Thakkar Muralidharan Uday Sankar Roy Kamalji Sahay Mala Todarwal Chairman and Managing Ramachandran Independent Director Independent Director Independent Director Director Independent Director • 34+ years experience in technology • 15+ years experience • 45+ years experi
Slide 36: Experienced Management Team
Experienced Management Team Narayan Gangadhar Dinesh Radhakrishnan Prateek Mehta Jyotiswarup Raiturkar Ankit Rastogi CEO CPTO CBO CTO CPO • MS in Computer Science • Master of Computer Applications, CEG • IIT-B, MBA - IIM-A • MS - Illinois Tech, Tech NIT Nagpur Comp. • B.E. (Computer Engineering) – G
Slide 37: Awards & Accolades
Awards & Accolades Technology Capital Markets Marketing Recognition for being amongst India’s Best performer in the Equity Retail YouTube campaign of the year at The Best Workplaces in Fintech by Great Segment 2022 by BSE Great Indian BFSI Awards 2022 by BFSI Place to Work Digital Stallion Forum Bro
Slide 38: 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 39: 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