Angel One Limited · NSE:ANGELONE
Angel One — Q4 FY2023 Earnings Presentation
45 slides from Angel One's earnings presentation, Apr 17, 2023
Slide 1: Letter to stock exchanges: 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 '23 Investor Presentation
Q4 ‘23 Investor Presentation 5x 8x Growth in Net 10x 3-Yr Revenue / 100% 8x Revenue Over CoA at present, Growth in Client Growth in Profits Successful Last 3 Years indicating strong Base Over Last 3 Over Last 3 Years transition to annuity build-up Years Super App achieved in Q4 ‘23 All the above dat
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 Q4 ‘23 & FY23 Business Model Performance Highlights Angel’s Advantage The FinTech Story Industry Landscape Financial Overview About Us Annexures 3
Slide 5: Financial Performance
Financial Performance % Change % Change % Change (₹ Mn) Q4 '23 FY23 QoQ YoY YoY Net Revenue 6,442 12.0% 26.9% 22,909 36.8% EBDAT 3,705 19.6% 32.6% 12,221 42.9% EBDAT Margin (%) 57.5% 363 bps 245 bps 53.3% 227 bps Profit After Tax 2,670 17.1% 30.4% 8,902 42.4% Earnings Per Share (₹/share) 32.0 17.0%
Slide 6: Operating Performance
Operating Performance % Change % Change Q4 '23 QoQ YoY Total Client Base 13.8 Mn 10.1% 49.5% Client Acquisition Metrics Gross Client Acquisition 1.3 Mn 30.9% -11.9% Share in India’s Demat Accounts 12.0% 48 bps 176 bps NSE Active Client Base 4.3 Mn 0.9% 17.1% Active Client Metrics Rank In Incremental
Slide 7: Table Of Contents
Table Of Contents Q4 ‘23 & FY23 Business Model Performance Highlights Angel’s Advantage The FinTech Story Industry Landscape Financial Overview About Us Annexures 6
Slide 8: 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 9: 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 10: FinTech Model Showing Better Prospects For Every Cohort
FinTech Model Showing Better Prospects For Every Cohort 3 Year Revenue / COA Metrics Of FY22 Acquired Clients Quarterly Average Revenue Per Client ARPC = Total op. net income (ex-treasury) / Avg. client base for the period (₹) 754 661 601 572 554 478 453 427 <25 414 7.8 x years, 40% 3 Yr Revenue / >
Slide 11: FinTech Model Powering Profitable Growth From Tier 2, 3 & Beyond Cohorts
FinTech Model Powering Profitable Growth From Tier 2, 3 & Beyond Cohorts >93% Of Gross Client Addition Contributed By Tier 2, 3 & Beyond Cohorts In Q4 ’23 (‘000) 1.4x Growth 1,468 1,337 81 1,277 1,293 71 1,257 1,204 79 1,178 62 81 Tier 1 82 57 956 509 988 476 412 47 356 Tier 2 61 376 455 385 332 349
Slide 12: Table Of Contents
Table Of Contents Q4 ‘23 & FY23 Business Model Performance Highlights Angel’s Advantage The FinTech Story Industry Landscape Financial Overview About Us Annexures 11
Slide 13: A Well Established FinTech Model
A Well Established FinTech Model Scalability & Reach Seamless Digital Experience Operating Leverage 7.6x 2x 1.8 x Growth in client base over last 3 Jump in NPS in last one year Expansion in EBDAT Margin Over Last 3 Years Years <6% 7.8 x ~94% Contact ratio, indicating high 3 Year Revenue / CoA Client
Slide 14: Broadening The Proposition, With Higher Engagement
Broadening The Proposition, With Higher Engagement Simplified Mutual Fund Journey In Super App Monthly Unique SIPs (‘000) Mutual Fund launch 41 39 on Super App 28 21 19 19 19 16 17 17 15 12 Apr-22 Jun-22 Aug-22 Oct-22 Dec-22 Feb-23 Scale up in Mutual Fund Distribution • Launched Direct Mutual Fund i
Slide 15: Table Of Contents
Table Of Contents Q4 ‘23 & FY23 Business Model Performance Highlights Angel’s Advantage The FinTech Story Industry Landscape Financial Overview About Us Annexures 14
Slide 16: 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% 114 Mn 33 Mn 1.1 Bn 608 Mn (Mar ‘23) (Mar ‘23) 1.4 B
Slide 17: 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) Sep '22 Dec '22 Mar '23 Others 23% 31% 34% 34% 32% 30% Industry -0.66 -2.05 -2.66 Industry de-grew but Angel One +0.16 +0.06 +0.04 Angel continued to Top 5 Digital Brokers* g
Slide 18: Regulations Have Strengthened Guardrails And Built Retail Confidence
Regulations Have Strengthened Guardrails And Built Retail Confidence Recently Introduced Regulations Up-streaming Of Client Funds • Up-streaming of client funds to Clearing Corporations (CCs), to be implemented in two phases, from 1 st July 2023 • Funds can be up-streamed in the form of: • Bank tran
Slide 19: 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 20: Table Of Contents
Table Of Contents Q4 ‘23 & FY23 Business Model Performance Highlights Angel’s Advantage The FinTech Story Industry Landscape Financial Overview About Us Annexures 19
Slide 21: Consolidated Financial Performance
Consolidated Financial Performance (₹ Mn) Gross Revenues Profit After Tax Gross Broking Interest Income Other +9% +17% +9% +2% +13% +0% 8,311 +7% +18% 2,670 +13% 7,459 7,597 +24% 1,129 -11% +14% 6.835 6,845 2,280 1,029 1,126 +23% 2,136 +13% 6.053 1,370 2,048 1,012 927 5,361 1,244 1,371 +11% 1,816 91
Slide 22: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Distribution Ancillary Transaction Charges Other Income 8% 1% 2% 9% 1% 8% 1% 1% 1% 4% 4% 2% 16% 16% 18% Q4 ‘22 Q3 ‘23 Q4 ‘23 67% 70% 70% Gross Broking Revenue Mix F&O Cash Commodity Currency 4% 1% 5% 1% 4% 1% 8% 12% 18% Q
Slide 23: Net Broking Revenue Contribution Mix
Net Broking Revenue Contribution Mix (₹ Mn) Age-wise Net Broking Revenue Mix Contribution to Net Broking Revenue <1 years 1-2 years 2-3 years 3-5 years 5+ years Direct Clients AP Clients 4,159 4,159 344 3,532 3,532 889 382 3,218 307 3,218 265 303 830 845 265 755 242 597 913 1,329 1,125 3,270 2,703 2
Slide 24: 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 1,02,280 2.0% 4.1% 4.0% 96,537 13,773 4.7% 8.8% 8.4% 11,533 47,936 93.2% 87.0% 87.6%
Slide 25: 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 24
Slide 26: FinTech Model Leading To Significant Operating Leverage Benefits
FinTech Model Leading To Significant Operating Leverage Benefits Consolidated EBDAT (₹ Mn) 2.5x 3,705 2,926 3,099 2,795 2,256 2,491 1,663 1,839 1,464 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 EBDAT Margin : Flat Fee Plan EBDAT Margin : Traditional Plan 56% 71% 53% 50% 53% 68% 67
Slide 27: 3 Years Financial Snapshot
3 Years Financial Snapshot (₹ Mn) Gross Revenues Cost To Net Income Profit After Tax 12,915 22,971 30,211 34.6% 46.0% 47.5% 53.8% 4,211 8,902 50.0% 5,195 3,582 48.0% 6,251 3,653 1,852 20,805 2,981 1,998 15,736 9,065 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Gross Broking Interest Income Other Ret
Slide 28: Consistently Paying Dividend
Consistently Paying Dividend Dividend Per Share Dividend Payout 35% in FY2021 35% 35% 35% 37% 35% 35% 35% 43% (₹ / Share) 13.60 9.25 9.00 9.60 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 Particulars (₹ / Share) Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ’2
Slide 29: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ Mn) Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 (a) Interest Income 1,370 1,371 1,063 5,195 3,653 (b) Fees and commission income 6,864 6,092 5,739 24,760 18,961 (c) Net gain on fair value changes 24 23 7 61 297 Total Revenue from operations (I) 8,257 7,486 6
Slide 30: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Mar’23 Mar’22 Financial Assets (a) Cash, cash equivalents and Bank Balance 54,911 48,750 (b) Other Trade Receivables 2,268 2,711 (c) Client Funding Book 11,533 16,518 (d) Investments 1,095 187 (e) Other financial assets 1,855 1,947 Non-financi
Slide 31: Table Of Contents
Table Of Contents Q4 ‘23 & FY23 Business Model Performance Highlights Angel’s Advantage The FinTech Story Industry Landscape Financial Overview About Us Annexures 30
Slide 32: 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 33: Experienced Management Team
Experienced Management Team Narayan Gangadhar Dinesh Radhakrishnan Prateek Mehta Jyotiswarup Raiturkar Ankit Rastogi CEO (Upto 16th May 2023) 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. (Comp
Slide 34: Awards & Accolades
Awards & Accolades Technology Industry 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 Bronze for
Slide 35: Scaling Up Ranks
Scaling Up Ranks 2017 2018 2019 2020 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 25 Best Workplaces in BFSI Recognized by The Great Place To Work Institute of India 20
Slide 36: Table Of Contents
Table Of Contents Q4 ‘23 & FY23 Business Model Performance Highlights Angel’s Advantage The FinTech Story Industry Landscape Financial Overview About Us Annexures 35
Slide 37: Robust Client Additions
Robust Client Additions India: Incremental Demat Accounts Angel: Incremental Client Base +142% +121% (Mn) -28% -10% (Mn) 34.6 5.1 4.6 24.8 +341% +188% 2.3 14.3 5.0 0.5 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Angel’s market share in incremental demat accounts in India 11% 16% 15% 18% 36 Share in incr
Slide 38: 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 483 bps Expansion In Market Share 13.1% 11.2% 12.0% 10.1% 10.6% 9.3% 9.7% 8.3% 8.8% Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Angel One’s Ranking In Incremental NSE Active Clien
Slide 39: Order Volumes Are Key Revenue Driver
Order Volumes Are Key Revenue Driver Trend Of Orders Vis-à-vis Active Client Ratio No of Orders (Mn) Angel's NSE Active Clients Ratio 50.00% 400 • NSE active client ratio is a 38% 37% 38% 39% 40% 39% 40.00% 36% 34% function of marginal clients 31% 300 doing one trade in a year 30.00% 2.3x growth in
Slide 40: 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 48 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 41: Retail ADTO Market Share Across Segments
Retail ADTO Market Share Across Segments Overall Equity Market Share (%) 22.7% 22.8% 21.2% 21.7% 21.5% 20.8% 20.9% 21.0% 20.8% 1.1x Growth Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 F&O Market Share (%) 22.9% 22.8% 21.3% 21.7% 21.6% 20.9% 20.9% 21.1% 20.8% 1.1x Growth Q4 '21 Q1 '
Slide 42: FinTech Model Driving Strong Client Acquisition
FinTech Model Driving Strong Client Acquisition 94% Of Gross Clients Added Under Flat Fee Plan 8% 6% 7% 7% 7% 5% 5% 6% 6% Traditional Plan 92% 94% 93% 93% 93% 95% 95% 94% 94% Flat Fee Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Gross Client Addition 956 1,204 1,277 1,337 1,468 1,2
Slide 43: FinTech Business Drives Multifold Increase In Client Activity
FinTech Business Drives Multifold Increase In Client Activity Flat Fee Dominates Overall ADTO 7% 8% 5% 5% 4% 4% 4% 3% 2% Traditional Plan 93% 92% 95% 95% 96% 96% 96% 97% 98% Flat Fee Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Strong Growth In Overall ADTO 20,000 Overall ADTO (₹ B
Slide 44: 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 20,000 250 200 12 57 59 57 18,000 180 70 215 9 10 55 60 10 16,000 200 160 8 52 173 172 60 48 48 50 14,000
Slide 45: Company and Investor Relations Advisors contact
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