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Angel One Ltd., a leading brokerage and financial services company, has announced its financial results for the third quarter of the fiscal year 2024-25 (Q3FY25).
The company reported a net profit of ₹281 crore, marking an 8% increase compared to the corresponding quarter last year.
However, the results also revealed a significant sequential decline of 33.5% from the previous quarter’s ₹423.38 crore.
Revenue from operations during Q3FY25 stood at ₹1,263.27 crore, a 19% year-on-year increase but an 11.2% decrease compared to the previous quarter.
The sequential decline in revenue and profit has been attributed to the impact of tighter regulations in the derivatives sector, which led to a reduction in trading volumes.
Key Performance Highlights:
- Net Profit: ₹281 crore, up 8% YoY, down 33.5% QoQ.
- Revenue from Operations: ₹1,263.27 crore, up 19% YoY, down 11.2% QoQ.
- Client Base Expansion: The company’s client base grew by nearly 52% year-on-year to reach 29.5 million by the end of Q3FY25.
- Trading Volumes: Angel One’s average daily turnover dropped by approximately 12% sequentially, reflecting the challenges posed by regulatory changes in the derivatives market.
Regulatory Impact on Trading Volumes
The sequential drop in profit and revenue underscores the challenges posed by recent regulatory measures targeting the derivatives market.
These measures have curtailed trading activity, leading to a 12% decline in Angel One’s average daily turnover compared to the second quarter.
Continued Client Base Growth
Despite the challenges in trading volumes, Angel One reported robust growth in its client base. The company now serves 29.5 million clients, reflecting a strong 52% increase compared to the same quarter last year.
This growth underscores Angel One’s ability to attract and retain customers in a competitive market.
Leadership Transition
During the quarter, Angel One appointed Ambarish Kenghe, a former Vice President at Google Pay, as its Group CEO.
The strategic hire is expected to strengthen the company’s leadership team and enhance its digital offerings.
Outlook
The mixed results highlight both opportunities and challenges for Angel One. While the company has demonstrated resilience through steady client base growth, regulatory hurdles and market volatility have impacted its financial performance.
With the new leadership in place, Angel One is expected to focus on innovation and digital transformation to navigate the evolving financial landscape.
Market Response
The announcement of Q3FY25 results has garnered significant attention from investors and analysts.
As Angel One adapts to regulatory changes and leverages its expanding client base, its performance in the coming quarters will be closely monitored.
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