Shares of broking company, Angel One reeled under selling pressure on April 17 and dropped over 6% as investors dumped the stock following its disappointing Q4 earnings. The company’s Q4 results were marked by a sharp fall in the company’s net profit as well as revenue which hit investor sentiment.
The company’s net profit for the March quarter nearly halved on year to Rs Rs 174.5 crore, down from the Rs 340 crore that it reported in the same period of the previous fiscal.
Revenue also dropped over 22% on year to Rs 1,056 crore, as against the Rs 1,357.3 crore that was clocked in the same quarter last year.
Making matters worse, the company’s operating margins also eroded sharply during the quarter under review. EBITDA margins contracted to 32.5% in the March quarter, sharply below the 39%, a year ago.
“FY25 was a transformative year for India’s capital markets, as the industry witnessed some headwinds from the implementation of F&O regulations alongside a volatile geopolitical backdrop,” said Dinesh Thakkar, Chairman & Managing Director in an exchange filing.
Moreover, the company’s gross client acquisition also fell nearly 44% on year to 1.6mn whereas the number of orders slipped 30.5% to 327mn. The drag on client acquisition and number of orders also coincided with the sharp market downturn which had weighed heavily on investor sentiment.
The company also stated that its FY25 numbers subsumes regulatory changes and softer market conditions.
The tough market conditions and crackdown on F&O regulations by SEBI has weighed down heavily on shares of Angel One in recent times. In that backdrop, the stock has lost nearly 25% of its value in the year till date.
Meanwhile, trading volumes in the counter were heavy today, furthering adding pressure on the stock. As much as 16 lakh shares of Angel One changed hands on the exchanges, already higher than the one-month daily traded average of 13 lakh shares.
