Angel One shares nosedive after mixed Q3 results; worst day for investors in 20 months

Angel One shares suffered their biggest intraday loss in more than 20 months on Tuesday, a day after the stockbroker reported a mixed set of quarterly numbers wherein a 580-basis-point fall in its margin. The stock weakened by Rs 546.4, or 14.1 per cent, for the day to end at Rs 3,328.3 apiece on BSE, after falling by as much as Rs 594.7, or 15.3 per cent, to Rs 3,280 apiece during the session—its worst intraday drop since May 6, 2022. 

In a regulatory filing post-market hours on Monday, Angel One reported a consolidated net profit of Rs 260 crore for the October-December period, an increase of 14 per cent on a year-on-year basis.

However, the company said its net profit decreased 14 per cent sequentially due to higher growth in cash segment orders, modification in cash intraday tariff structure, and as higher client acquisition led to higher opex. 

Its revenue grew 41.4 per cent to Rs 1,059 crore for the fiscal third quarter while EBITDA increased about 23 per cent to Rs 398 crore.

The company's quarterly margin, a key measure of profitability, contracted to 37.6 per cent as against 43.4 per cent a year ago, according to the filing.   

”Angel One has always focused its efforts to offer clients the most suitable products, in a seamless and efficient manner, by harnessing the power of data and technology. Our digital assets are continuously evolving, (and) enriched with innovative features to ensure an unparalleled investing experience. We undertook process improvements, to ease the onboarding experience and incorporated some unique features, for both new and experienced clients, thus simplifying their investment journey on the app," said Dinesh Thakkar, Chairman and Managing Director, Angel One. 

The company said it acquired more than a million clients in a month and 2.5 million clients in a quarter for the first time, accounting for nearly a quarter of the net client addition in the industry.

The broking firm announced an interim dividend of Rs 12.70 per share with a record date of January 23.

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