ICICI Direct: 5Paisa Reports First Time Profit In Q1; Client Addition Remains Robust
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ICICI Direct Report
5Paisa Capital Ltd reported a healthy performance on all fronts.
Revenue grew a strong 85% YoY, 20% QoQ to Rs 42 crore in Q1 FY21, largely led by improving average daily turnover, increasing client base. Robust on-boarding of clients took total customer count to approximately 7 lakh in Q1 FY21 (approximately 5.4 lakh in Q4 FY20 and 4.2 lakh customers in Q3 FY20).
ADTO increased YoY to Rs 28,500 crore though decline in derivatives volume led to marginal decline in overall ADTO QoQ. Healthy growth in margin funding kept traction in interest income steady. Steady opex led operating leverage kicked in leading the company to report profit for the first time at Rs 3 crore verses a loss of Rs 1.8 crore in Q4 FY20.
Covid-19 led lockdown coupled with lower fixed brokerage and user-friendly mobile apps supported the ongoing pace of aggressive client acquisition. In Q1 FY21, customer addition surged to 1.6 lakh taking total customer base to 7 lakh compared to ~5.4 lakh as of March 2020, implying continued gain in active client’s market share at ~5%. Led by lower brokerage, active client to total client is expected to be better compared to traditional brokers. While client acquisition remained robust, ADTO saw a sequential decline led by higher volume in cash segment witnessed in the industry.
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