Release Date: October 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- 5paisa Capital Ltd (NSE:5PAISA, Financial) reported a 15% year-on-year growth in profit after tax, achieving a lifetime highest ever profit margin of 22%.
- The company experienced a 20% year-on-year growth in customer acquisition, reaching a total customer base of 46.28 lakh.
- 5paisa Capital Ltd (NSE:5PAISA) launched new web trading platforms and improved user experience, reducing latency and enhancing performance.
- The company's mutual fund assets under management doubled, reaching INR 1333 crore.
- 5paisa Capital Ltd (NSE:5PAISA) has implemented cost optimization strategies, resulting in a 12% to 13% reduction in customer acquisition costs.
Negative Points
- There was a 9.9% decline in the client funding book, impacting the company's financial performance.
- The company's allied income decreased by 2% due to a minor drop in the client funding book.
- Regulatory changes by SEBI, such as limiting transaction charges and changes in index derivatives, may impact revenue.
- The market share for both cash and derivatives segments remained stagnant at 2% to 2.5%, indicating limited growth in market penetration.
- The company's MTF (Margin Trading Facility) book has declined due to competitive pricing pressures from new market entrants.
Q & A Highlights
Q: Can you provide an update on the product upgrades mentioned last quarter?
A: The revamped user experience has been fully rolled out for iOS users, and the FNO 360 is now available on iOS. The Android rollout will be completed by the end of this month. Major changes and improvements have been implemented as committed. - Ameya Agnihotri, Whole-Time Director & CTO
Q: How do you see customer acquisition growth over the next few quarters?
A: We aim to acquire quality customers, focusing on those relevant to our industry. We expect to increase customer acquisition quarter on quarter for the next three to four quarters. - Gourav Munjal, Whole-time Director & CFO
Q: What is the expected financial impact of recent regulatory changes?
A: The first change could impact industry-level income by 10%, but we have taken actions to mitigate this. The second change, effective from November 20, may slightly drop revenue, but we will review the situation post-implementation. - Gourav Munjal, Whole-time Director & CFO
Q: What is your strategy regarding the MTF book, which has declined recently?
A: We are making several improvements, including app changes, increasing limits, and reducing rates. We aim to grow the book size significantly in the future. - Gourav Munjal, Whole-time Director & CFO
Q: Can you provide an update on the first-year revenue from customers?
A: While I can't disclose exact numbers, there has been an increase in first-year revenue due to our focus on quality customer acquisition. We are in line with industry standards. - Gourav Munjal, Whole-time Director & CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
