BENGALURU (Reuters) – Indian stockbroker Angel One Ltd reported a 30.4% rise in its quarterly profit on Monday, helped by a surge in trading volumes and orders.
The company, which offers various trading apps, said its total client base rose 49.5% to 13.8 million during the three months ended March 31.
Angel One’s consolidated profit rose to 2.67 billion rupees ($32.6 million) for the fourth quarter, compared with 2.05 billion rupees a year ago.
The benchmark Nifty index fell 4.1% in the first three months of the year.
Traditional stockbrokers like Angel One are seeing a strategic shift towards spending more on technology and new price packages as they face heated competition from emerging private players like Zerodha, Groww, Upstox, which offer attractive charges, analytical features and easy interfaces for trading.
While active trading accounts have declined to 33.5 million in Jan. 2023 from 36.6 million in June 2022 as the pandemic driven euphoria waned, derivative volumes remained elevated, especially with increased appetite for options from retail category, analysts at ICICI Securities said.
Average daily turnover amplified 114.3% to 18.5 trillion rupees during the quarter, from 8.6 trillion rupees a year ago.
However, Angel’s active client ratio, which indicates the number of clients trading regularly, fell to 31% from 39.7% year ago.
The Indian government in March raised securities transaction tax on futures and options and the impact due to that is expected to be seen during the first quarter >> said who?
The company’s shares closed 1.04% higher on Monday, ahead of results. They are down 2.63% so far this year.
($1 = 82.0400 Indian rupees)
(Reporting by Kashish Tandon)
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Source: The Print
