Angel One confident of maintaining pace of client acquisition

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mumbai-based fintech player Angel One is confident of maintaining a robust growth in client acquisition, projecting a Compound Annual Growth Rate (CAGR) of 55-60%.

Dinesh Thakkar, Chairman and Managing Director of Angel One, in an interview with CNBC-TV18 pointed out that over the past four or five years, the CAGR for client acquisition has been 77%.

“We do not see any slowdown in new acquisition in fact, this quarter we did around 29 lakh customers which is higher than previous quarter. If you look at like customers that we are acquiring, they are for the same kind of demographic of mostly coming from tier-two and beyond which is around 85 to 90% of our clients that we acquire. So, overall I see this healthy trend.”

The monthly customer acquisition will be supported by strategic initiatives such as sponsorship of the Indian Premier League (IPL) and intensified branding activities.

The profit after tax (PAT) has also experienced a CAGR of approximately 68%.

This lag effect is a common occurrence when acquiring customers. However, over a span of four or five years, the impact of client acquisition becomes evident in the overall growth trajectory.

“Currently, in new client acquisition, our market share is 23% and when we talk about active client, which is based on NSE formula, which is client who has traded once in a year, we stand at around 15%.”

The company on April 17 reported a 27.3% year-on-year (YoY) growth in net profit at ₹340 crore for the fourth quarter that ended March 31, 2024.

The company’s revenue from operations jumped 64.3% to ₹1,357.2 crore against ₹826 crore in the corresponding period of the preceding fiscal.

The earnings before interest, tax, depreciation, and amortisation (EBITDA) margin stood at 39% in the reporting quarter. Thakkar stated that they are comfortable in maintaining 45-50% operating margin.

The company, which has a market capitalisation of ₹24,305.43 crore, has seen its shares gain 113% over the last year.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow