Thread by @TYMFinance

Angel One Ltd conduced the conference for Q3 today at 11:00 AM.

Here are the conference call highlights
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Business Updates:

• 35% of payout given as interim dividend.
• Client Activation increased to 39% from 37% in Q2 FY22.
• Build new digitize app, for increasing client experience. New app is in beta and is expected to launch soon.
• Acquired 3.8Mil client in current year.

Industry Update:

• India has open 10 Million new account in Q3, taking total count of 81 Million.
• Mgmt expect this growth to be sustainable.
• Total trade volumes had increased even in the correction market.
• Industry shifted from charging turnover base to order base.

Market Presence:

• Share of commodity market has increased continuously.
• Cash market got impacted due to changing norms by SEBI leading to impact in margins.
• Commodity market share is high because of trust build by Angel, and uptime on both the shifts given by Angel

Clients:

• Active client ratio increased to 3.1 Million
• Number of order grew 6x reaching to 180 Million.
• Commodity segment has remain at all time best.
• Avg. client funding book reached to ~Rs 16.4 Billion.
• Avg revenue per client has grew by 5.8x.

Data:

• Cost to income are at 49% and mgmt expect it to be sustainable.
• With increasing market share, mgmt expect margin to be sustainable. Increasing margin would be devoted to technology spend.
• ARPU decline to 528Rs. But. co. focus on increasing margin, ARPU may decline

Super App:

• With new app co. focuses on first customer to easily place the order.
• New app will be usable across country, with low bandwidth, vernacular in language, and different financial instrument will be added.
• This will be started with MF, Insurance first.

Technology spend:

• Any technology expense related to development will be capitalize.
• Tech spend in 9 months is 100cr of which CAPEX is 6cr.
• New app will bundle all the financial service for the customer in need.
• App will be based on AI / ML with knowledge feature.

Focus:

• Mgmt focus on increasing the market share & increase in margin.
• This may lead to decline in ARPU, but focus may remain on adding clients, which will increase ARPU in future.
• Break even has remain 4-5 months
• Revenue Share in int. income & broking are increasing

Why change to new app?

• Over past 3 years, there is lot more customer shift in the industry.
• With increasing data, new customer looks for such services, hence new app is taken.
• While new services of ML will be in need for future which will be used come in industry soon.