Stockrabit · Analysts
Questions across 6 calls

Dinesh Thakkar

Firm not listed in source transcripts

Angel One Limited

Angel One Limited CC-Jul25.pdf · 2025-07-17
So in terms of current trend on order and revenue, you can see in this quarter, already we have seen growth of around -- in terms of revenue around 7% to 8%. So what we saw that, okay, if you see that FIIs were absent for like last year third quarter and fourth quarter and this first quarter, for first 2 months, they were positive and they had a positive inflow. And we can clearly see an impact of like momentum in the market and FIIs has strong correlation between retail activity and their orders. So we believe as this macro will improve and FIIs and retail will come back, we will see some kind of like good earning momentum and all that, we are very hopeful that we will be able to exit quarter 4 with a decent visibility on OPM that we were speaking about. So we are confident that our OPM is going to return back to normal by exit of quarter 4, looking at the trend of customer acquisition and looking at activity of customers, which is increasing on our platform. On client acquisition trend, again, payback period depends on market conditions and engagement of retail in that particular 6, 8 months and all that. But we are confident, we focus more on cost to revenue. If at all, revenue justifies cost and we are able to see that, okay, that will result in OPM 40-45%. We would not like to leave any growth on the table. And on new businesses, Vineet, if you can take that on new businesses contribution and impact of this thing on our margins and all that.
And on fourth point, cash broking, yes, it would be impact of because margin trading book is really picking up. So people who invest through margin trading, their ticket size is a bit higher. So realization per order would be higher.
Angel One Limited CC-Mar25.pdf · 2025-04-17
So Swarnabha, on this variable cost as our industry is cyclical, always we say we have some buffers, which are variable, which we can play with. So when we set our targets, we set certain variable portion. If we missed that this time because of regulatory changes and all that, we were unable to reach our targets, so definitely, there is a reversal of variable cost. But going forward, always this is the practice, we do some projection based on that, we work out fixed and variable pay. So for coming year also, same system would be followed. So on second question on customer acquisition, I will ask Arief to address this later. On your cohort level revenue and all that, we don't disclose much on that unless -- Amit, do we disclose cohort level revenue?
Okay. One second. You can take that later. And on breakeven impact, we believe that if we look at customers' wallet share, that has not shrunk. So their engagement in this market will, in fact, going to improve. So except for the temporary phase that we are seeing because of regulatory change and macro getting weak and all that, we are seeing this impact. But otherwise, I believe that we will be able to maintain this breakeven of between 6 to 9 months. So Arief, you can take that customer acquisition cost and then Amit, you can take that cohort level.
Angel One Limited CC-Mar24.pdf · 2024-04-18
First, I’ll just answer in terms of increase in orders. If you see when we started this financial year, we were clocking around 42 lakh orders per day, which in Q4 was 86 lakh orders per day. Parallelly, if you look customers that we were acquiring was around 4, 4.2 lakh per this thing a month which by Jan and Feb we were clocking around 10 lakh client per month, that is we’re acquiring around 10 lakh clients per month. So, this new set of customers, when they come in, definitely they are active and what orders we get from our vintage clients and new cohorts also are of a similar kind of a nature when they are onboarded, within 10 to 15 days they are active on our platform. So, primarily it is because we have acquired a huge set of customer much beyond growth that we regularly clock and due to kind of like vintage clients also being active on our customer as we explained in Slide #9 and #10, combined with new set of customers, we saw activity growing up. And second proportion of order of BSE, we don’t disclose that, but that is not a significant proportion. It is proportionate to whatever order we clock on NSE and all that. It is not that BSE has contributed in a big way, although we have a decent market share across NSE, BSE and all other segments. On branding spend, yes, what we have shown, it includes IPL. Vineet would be the right person to walk you through this number. And on Slide #10, specifically, Amit or Vineet, you can take this question.
Just to add over here, see, this branding cost and when we are acquiring more customer than what we acquired in previous quarter, it will appear there is an impact. As I always said, this is kind of an upfront cost. If you refer to Slide #9, we are clearly showing that all vintage customers across five years have given us revenue. So, best way would be that till the time this phase of growth continues and we are hopeful it will continue for many more years, whenever in a quarter we acquire m ore than what we acquired in previous quarter, that will appear as a suppression of margin. But that is only upfronted cost which if at all you want to know, annual ised kind of an OPM that will help you to remove it for time being. And if you are taking it, you divide it by five years because you would have apportioned 12.5% of due kind of like cost that we have taken because lifetime value of a customer as shown in Slide #9, it is five years and beyond. So, this all cost that we are taking upfronted in terms of acquiring more customer and getting more market share is making our business model more stronger.
Angel One Limited CC-Dec23.pdf · 2024-01-16
Yes, excellent questions. See, on the tariff part, as repeatedly, we have told that we are actually market makers. We are able to expand market. So we have to go into kind of different geographies, different profile of customers and check what are the offerings which will attract them to onboard in this industry. So time and again, we have been kind of like coming out with lots of kind of like tariff structures and all that, where we are able to attract new set of customers. But what guides us, what we look at is that what is the cost of acquisition and what kind o f a lifetime value we can derive from this set of customers. So that is the prime reason that we -- all the time being first kind of like mo ver in this market to acquire new profile of customers. We have to try out different ways to onboard this customer. But what we have seen, once the customer is on-boarded, almost lifetime value is just -- that justifies cost of equation to the tune where we want to maintain an OPM of 50% and above. So we look at that. Second, on ancillary revenue and all that, I would ask Vineet to cover it later. Let me just complete on your -- the cost of acquisition and LTV side, although I have covered. So our cost of acquisition has not increased, first of all. As I said that we go for different profiles, and every profile we try to map what an LTV achieved. If you look at all the profiles that we are acquiring customers from open market, our cost to LTV has remained steady and we still maintain that breakeven of 6 months. Vineet, if you can just answer on ancillary revenue and expense side?
Yes, sure. As I said, our overall metrics, is cost of acquisition to LTV has not changed. But what happens like this quarter was full of seasons and all that. So when we take LTV of a customer is 5 years and beyond. So there will be a few quarters where clients are not active because, as you know, Diwali, Christmas, New Year and all that, activity are a bit lower. And plus this quarter, if you see, we had 3 less working days. So overall, we don't see any impact on margin. But what will happen? If you get an opportunity to acquire more customers, it's an upfronting cost. So the impact will show a lower margin for that quarter. But if we extrapolate business model, that whole OPM has not changed. There are a few quarters when you get more opportunity to acquire more customer. You see that quarter, you may see OPMs less because of upfronting costs on acquiring customers, on -boarding customers, expanding our techno logy capabilities and all that. So this quarter was more about investing in new of customers. If you look at our customer base has grown almost by 16.5% quarter-on-quarter. That is a huge. There's a cost of acquiring a customer. And revenue is going to come in the next five, six years. So if I look at the metrics of cost of acquisition and LTV, it is almost like similar to what it was the previous quarter. So overall, I don't see that this impact on margin, what we are seeing in this quarter, is permanent. It is something that we got an opportunity to acquire more customers. We acquire, we invested on expanding our kind of like technology capabilities and all that. So there's a cost of cloud, there is a cost of on -boarding a customer. So overall, I can tell you that our cost of acquisition and LTV hasn't changed. So there is no impact on long-term guidance that we say that we would like to remain in that zone of 45% to 50%. But if we look at our cost of acquisition to lifetime value, what slide we show, it appears to be around in the range of 75% to 80%. Slowly, you will see that, okay, this will play out once kind of like India reaches a level where there is not a huge opportunity to grow but we are more trying to get more wallet share of our customer. That is where a true reflection of OPM would be visible. But currently, as we are growing, as we see more opportunity to acquire customers, we may see impact in a quarter or 2. And then again, if at all opportunity stabilizes, you'll see we're going back to the same OPM. Plus, we are investing in new businesses. So that new businesses will have impact in terms of we have to take upfront costs in the new businesses. But if I talk about broking, we have been maintaining this kind of like cost to LTV, but new business addition that we are doing, incremental investment that we have to do is not going to impact margin in a big way.