Trying to gauge down the Float Income earned by Angel, found the following:
From FY 22 Balance Sheet:
Trade Payables - This mostly includes Client Deposit Money + some Settlement Payables to Exchanges - 4046 Cr
Cash Equivalents - 4452 Cr
In the Cash Equivalents the most important Item is Fixed Deposits under Lien with Stock Exchanges - 3165 Cr because this maps directly to a P&L entry. This is major constituent of Float Income in my opinion which is under attack from ASBA implementation.
From P&L:
Total Interest Income - 365 Cr
MTF - 252 Cr
Lending Activities - 12.6 Cr
Interest on fixed deposits under lien with stock exchanges - 67.2 Cr
Interest on Deposit with Banks - 32 Cr
For FY23 the total Interest Income is - 519 Cr up by 42%
MTF Average Size for FY22 - 1484 Cr
MTF Average for FY23 - 1490 Cr
Avg ADTO FY22 - 6476 Cr
Avg ADTO FY23 - 13608 Cr
Trying to establish that a larger ADTO leads to larger Margin & Deposit Requirements and thus larger Float Income. Thus a major trigger for the Interest Income in FY23 can safely be concluded to be the Float Income from Fixed Deposits under lien with Stock Exchanges.
With Upstreaming of Client Funds applicable from 1/07/23 the impact is ~ 60 Cr. Add tax benefit PAT impact (50Cr).
Thus Cumulative Float Income under Impact can be said to be 200Cr. While this number relatively looks huge on PAT of 890 Cr there is a way out for Brokers which many decline now to implement but most likely will in the future.
Gross Broking is roughly 70% of Total Revenue - 2080 Cr. A 10% increase in this number can cover for the Float Loss which again directly flows to the bottom line due to Operating Leverage.
For Traders the biggest charge is STT & Exchange Turnover charges. Broking is relatively a small amount in the total cost for an order.
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