Angel One Limited · NSE:ANGELONE
Angel One — Q2 FY24 Earnings Presentation
42 slides from Angel One's earnings presentation, Oct 12, 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 Sirs/ M
Slide 2: Q2 '24 Investor Presentation
Q2 ‘24 Investor Presentation 12th October 2023
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 Q2 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 3
Slide 5: Q2 '24 Performance
Q2 ‘24 Performance Client Acquisition Metrics Active Client Metrics Transaction Metrics Financial Metrics 17.1 Mn (+13.3% QoQ) 4.9 Mn (+10.0% QoQ) 338 Mn (+36.1% QoQ) ₹ 8.2 Bn (+29.8% QoQ) Total Client Base NSE Active Client Base Number of Orders Total Net Revenue 2.1 Mn (+59.8% QoQ) 2nd (Maintained
Slide 6: Super App: Feature Enhancements
Super App: Feature Enhancements Basket Order Stock S.I.P. Handholding Newly Acquired Clients • Allows clients to place multiple orders in a single • Sets up regular investment plan to invest in • Guiding newly onboarded clients through various click equity market journeys, step-by-step, thus buildin
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: Striving To Improve Client Experience
Striving To Improve Client Experience New Features Introduced, Focused On Elevating Experience Sensibull made free Partners Connect, a Developed QR code BSE Derivative for all Angel One Launched TradeBuddy, feature within NXT to with referral links for products activated for clients, thus making it
Slide 9: Table Of Contents
Table Of Contents Q2 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 8
Slide 10: 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 11: 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 12: FinTech Model Showing Better Prospects For Every Cohort
FinTech Model Showing Better Prospects For Every Cohort Consistently Acquiring Younger Clients >89% Of Gross Client Addition Contributed By Tier 2, 3 & Beyond Cities In Q2 ’24 1,277 1,337 1,468 1,257 1,178 988 1,293 1,325 2,117 (‘000) <25 years >25 years 225 490 60% 57% 52% 169 161 157 131 133 148 T
Slide 13: Expanding Multi-Product Relationship
Expanding Multi-Product Relationship Unique SIPs Registered Consumer Credit Products (‘000) 725 ❖ Building proprietary AI/ML models using internal and external consumer data, to facilitate lending partners 431 underwrite and collect better ❖ Initial review of customer bureau data indicates high 108
Slide 14: 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 15: Table Of Contents
Table Of Contents Q2 ‘24 Business Model Highlights Angel’s Advantage 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% 130 Mn 33 Mn 1.1 Bn 656 Mn (Sep ‘23) (Sep ‘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 Industry -0.66 -2.05 -2.66 -1.77 Others Industry 27.3% 34% 34% 32% 30% de-grew Angel One +0.16 +0.06 +0.04 +0.13 but Angel continued Other Digital to grow Top 5 Digital Brokers* B
Slide 18: 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 19: Table Of Contents
Table Of Contents Q2 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 18
Slide 20: Consolidated Financial Performance
Consolidated Financial Performance (₹ Mn) Gross Revenues EBDAT Profit After Tax Gross Broking Interest Income Other +41% +43% +43% 4,185 10,493 3,045 1,411 8,111 3,056 2,926 2,208 7,459 1,812 2,136 1,088 1,029 1,448 1,244 7,270 5,575 5,187 Q2 '23 Q1 '24 Q2 '24 Q2 '23 Q1 '24 Q2 '24 Q2 '23 Q1 '24 Q2 '
Slide 21: Segmental Revenue Break Up
Segmental Revenue Break Up Gross Revenue Mix Gross Broking Interest Depository Distribution Ancillary Transaction Charges Other Income 9% 0% 8% 1% 9% 0% 1% 1% 1% 4% 3% 3% 17% 18% 17% Q2 ‘23 Q1 ‘24 Q2 ‘24 70% 69% 69% Gross Broking Revenue Mix F&O Cash Commodity Currency 4% 1% 5% 0% 4%0% 13% 10% 11% Q
Slide 22: Net Broking Revenue & Margin Profile
Net Broking Revenue & Margin Profile Reported EBDAT Normalised EBDAT Contribution to Net Broking Revenue EBDAT Margin* : Direct Channel (₹ Mn) Direct Channel Assisted Business 53% 54% 51% 51% 50% 48% 46% 45% 42% 5,232 48% 1,149 (22%) 3,952 3,580 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '2
Slide 23: 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) (₹) <₹ 0.1mn ₹ 0.1-0.5mn >₹ 0.5mn 1,17,314 1,17,432 4.9% 4.3% 6.3% 19,459 1,08,006 11.0% 8.1% 10.1% 16,687 11,393 84.2% 87.6%
Slide 24: 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 23
Slide 25: Consistently Paying Dividend
Consistently Paying Dividend Dividend Per Share (₹ / Share) 13.60 12.70 9.25 9.00 9.60 9.25 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 Q1 '24 Q2 '24 Particulars (₹ / Share) Q2 ’21 Q3 ’21 Q4 ’21 Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’23
Slide 26: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ Mn) Q2 FY24 Q1 FY24 Q2 FY23 H1 ’24 H1 ’23 FY23 FY22 (a) Interest Income 1,812 1,448 1,244 3,260 2,455 5,195 3,653 (b) Fees and commission income 8,649 6,607 6,197 15,256 11,804 24,760 18,961 (c) Net gain on fair value changes 18 20 12 38 14 61 297
Slide 27: Summary Of Consolidated Balance Sheet
Summary Of Consolidated Balance Sheet Particulars (₹ Mn) Sep’23 Mar’23 Financial Assets (a) Cash, cash equivalents and Bank Balance 76,397 54,911 (b) Other Trade Receivables 268 2,261 (c) Client Funding Book 19,459 11,533 (d) Investments 1,173 1,095 (e) Other financial assets 7,214 1,862 Non-financi
Slide 28: Table Of Contents
Table Of Contents Q2 ‘24 Business Model Highlights Angel’s Advantage Industry Landscape Financial Overview About Us Annexures 27
Slide 29: 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+ years experience in technology • 17+ years experience • Fellow member
Slide 30: Experienced Management Team
Experienced Management Team Dinesh Thakkar Vineet Agrawal Amit Manjumdar 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 experience • N.I. T., Karnataka • MS - Illin
Slide 31: People Practices & Social Empowerment
People Practices & Social Empowerment Robust Employee Engagement Angel’s CSR Programmes Maharashtra Rajasthan Skilling and Digital and placement of youth Financial Literacy Gujarat Karnataka Great Place to Work Delhi ✓ Ranked 52nd in Top 100 Best Companies to work for in India ✓ Listed among India’s
Slide 32: Awards & Accolades
Awards & Accolades Technology Industry Marketing Best Customer Centric Culture in Fintech hosted by expleo organised Gold Winner at ImageXX Award 2023 by Brand of the year at The Great India by Quantic at 2nd Annual Excellence Adgully for BFSI Service BFSI Awards 2023 Awards 2023 Recognition for bei
Slide 33: Table Of Contents
Table Of Contents Q2 ‘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 +142% +121% -28% (Mn) -10% (Mn) 34.6 5.1 4.6 24.8 +341% 3.3 +188% 15.2 2.3 14.3 5.0 0.5 FY20 FY21 FY22 FY23 H1 '24 FY20 FY21 FY22 FY23 H1 '24 Angel’s market share in incremental demat accounts in India 11% 16% 1
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 527 bps Expansion In Market Share 14.3% 14.6% 13.1% 11.2% 12.0% 10.1% 10.6% 9.3% 9.7% Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Angel One’s Ranking In Incremental NSE Active Cli
Slide 37: Order Volumes Are Key Revenue Driver
Order Volumes Are Key Revenue Driver Trend Of Orders Angel One’s NSE Active Client Base (Mn) 338 4.9 4.4 4.2 4.2 4.3 263 4.0 249 3.7 230 226 211 207 3.1 180 2.5 152 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 3rd 3rd 4
Slide 38: FinTech Model Successfully Weathering Market Volatility
FinTech Model Successfully Weathering Market Volatility Angel’s Average Daily Orders Increased In 22 Out Of 26 Instances, Where Either Index Corrected By >5% Over The Last 54 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 Overall Equity Market Share (%) 22.8% 24.5% 26.2% 21.2% 20.9% 21.0% 20.8% 21.7% 21.5% 1.2x Growth Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 F&O Market Share (%) 22.8% 24.6% 26.2% 21.3% 20.9% 21.1% 20.8% 21.7% 21.6% 1.2x Growth Q2 '22 Q3 '
Slide 40: FinTech Business Drives Multifold Increase In Client Activity
FinTech Business Drives Multifold Increase In Client Activity Flat Fee Dominates Overall ADTO 5% 5% 4% 4% 4% 3% 2% 3% 2% Traditional Plan 95% 95% 96% 96% 96% 97% 98% 97% 98% Flat Fee Q2 '22 Q3 '22 Q4 '22 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Strong Growth In Overall ADTO 40,000 Overall ADTO (₹ B
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) 60 70 35,000 300 350 14 59 62 264 55 11 12 57 60 30,000 300 12 50 250 215 48 48 9 10 50 25,000 199 250 1
Slide 42: Company and Investor Relations Advisors
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