Shares of Angel One took a significant hit in the opening trade on January 16, dropping nearly 10 percent. This decline came after the broking company reported a sharp margin contraction in the October-December quarter. Angel One’s operating margin fell to 37.60 percent in the third quarter, down from 43.3 percent in the same period the previous year.
Motilal Oswal Financial Services, a brokerage firm, attributed the decline in profitability to higher operational expenditure resulting from increased client acquisition. Despite the weak operational performance, Angel One managed to achieve a 14 percent year-on-year rise in its consolidated net profit, reaching Rs 260.3 crore. Additionally, the company experienced a significant increase in revenue, which surged 41.9 percent to Rs 1,059 crore compared to the corresponding quarter last year.
Angel One’s client base also expanded by 55.5 percent from the previous year, reaching 1.95 crore. The company’s share in India’s dematerialized account base improved by 241 basis points, reaching 14 percent.
Angel One chairman expressed that the acquisition of over a million clients in a month and 2.5 million clients in a quarter, accounting for nearly a quarter of the industry’s net client addition, was a significant achievement for the company.
Despite the decline in shares due to the margin contraction, Angel One remains optimistic about its growth prospects and the potential of its expanding client base.
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