> Angel One Q2 FY25 earnings call highlights

• Regulatory changes like true to label, weekly index derivative product to one per exchange, increased contract sizes for index derivatives and a 2% increase in the ELM on expiry day.(Extreme Loss :This margin is calculated on the notional value of a position to cover any significant market shocks or extreme losses. It is designed to add a layer of protection against market volatility).*
• Will result in the near term softness but the management said they will be no change in the life time value of a customer
• Due to permanent impact of the true-to-label transition charges, angel one implemented several proactive tariff adjustments, including introduction of brokerage on cash delivery orders and the imposition of interest on disproportionate non-cash collateral offered as margin exceeding ₹ 50,000
• This quarter gross broking revenue grew by 2% sequentially, where they did not charge clients during the quarter. be negated we have to look Q3 results to understand how the introducing the brokerage pans out as they are other discount brokers ie,zerodha,dhan,etc offer 0 charge on delivery on equity
• By their rough estimate there will be 13-14% impact from broking related revenues but due to the run rate of 50 – 60% this impact will be negated in less than 2 quarters.
• ASBA in secondary market or UPI block, this is mandatory offering for QSBs from January onwards mgmt says there won’t be much impact
• So, about the loan distribution business angel one charge one time fee for a loan taken by the customer and if same person take another loan then they charge again and angel one is just a distributor so they don’t take NPA in case of default.
• Mgmt guided that EBITA margins still be ~43%
• Mgmt said AMC licence still on final stage and they could get it on any day.