Quarterly Results Analysis: Angel One

 

Quarterly Results Analysis: Angel One (Period Ending December 31, 2024)

Revenue & Profit

Angel One reported revenue from operations of ₹12,622.06 million, showcasing a 19.21% year-over-year (YoY) growth compared to ₹10,590.46 million in Q3 FY2023. However, on a quarter-over-quarter (QoQ) basis, revenue declined by 16.68% from ₹15,147.06 million in Q2 FY2024.

The Profit After Tax (PAT) stood at ₹2,814.72 million, reflecting an 8.12% YoY increase from ₹2,603.26 million in Q3 FY2023. However, it declined by 31.89% QoQ from ₹4,133.80 million in Q2 FY2024.

Key Metrics

• Net Profit Margin: The net profit margin for the quarter was 23.85%, down from 26.35% in the year ending March 2024.
• Earnings Per Share (EPS): Basic EPS was reported at ₹31.25, maintaining stability with ₹31.02 in Q3 FY2023.

Expenses

• Employee Benefits: Expenditures on employee benefits surged to ₹2,373.22 million, marking a significant increase from ₹1,415.92 million YoY. This reflects higher recruitment, compensation adjustments, or incentives.
• Other Expenses: Other expenses amounted to ₹3,344.02 million, slightly lower than ₹3,713.31 million in Q2 FY2024 but higher YoY. Sponsorship and marketing costs, such as IPL sponsorships, were key contributors to this expense.

Market Expectations

Angel One’s YoY growth remains robust, underpinned by its operational efficiency and market presence. However, the QoQ decline in revenue and PAT, alongside rising expenses, might differ from market expectations. Higher costs related to employee benefits and branding initiatives have weighed on profitability.

Strategic Updates

1. Dividend Declaration: The company announced an interim dividend of ₹11.00 per equity share, reaffirming its shareholder-centric approach.
2. Leadership Change: The appointment of Mr. Ambarish Kenghe as Group CEO signifies a strategic focus on innovation and scaling. With a rich background in fintech and e-commerce, Mr. Kenghe’s leadership is expected to drive the company’s growth ambitions.

Outlook

Angel One continues to demonstrate solid YoY growth. Strategic investments in branding, leadership, and employee initiatives underscore the company’s long-term vision. However, challenges such as rising costs and a QoQ decline in profitability warrant close monitoring. Investors should keep an eye on expense trends, macroeconomic conditions, and market dynamics.

Angel One’s commitment to innovation and scaling, coupled with its strong financial foundation, positions it well for sustained growth. As the company navigates cost pressures, its strategic initiatives aim to deliver consistent value to shareholders in the long run.