Broking Platform GrowwImage Credit source: ai generated
The balance sheet of 'Billionbrains Garage Ventures', the parent company operating the country's leading online stock broking platform 'Groww', turned green with strong profits. In the March quarter, Grow's consolidated net profit has crossed Rs 686 crore, a huge jump of 122 per cent on an annual basis. At the same time, the company's operating income (Revenue from operations) has also increased by 87 percent to Rs 1,505 crore. EBITDA has jumped by 142 percent to Rs 939 crore. In fact, the company's infrastructure expenditure remained almost constant, while the income grew very rapidly. In the language of the corporate world, this is called getting the benefit of 'operating leverage' and this plan has given such strength to the profit margin of the company.
Huge earnings from derivatives (F&O)
There was tremendous turmoil in the stock market due to continuous selling by foreign institutional investors (FIIs) and geopolitical tensions. In such an environment, investors took risks and made huge deals in derivatives (Futures & Options) and commodities. As a result, the share of equity derivatives in Growo's total earnings has increased from 53.5% in the previous quarter to 54.6% now. Apart from this, new options like Margin Trading Facility (MTF) have also gained momentum. However, due to extreme volatility, the company also had to increase its expenditure on risk management, CSR and administrative functions.
Growing craze of SIP
On one hand, trading volume in derivatives was increasing, while on the other hand, the confidence of long-term investors also remained intact. At present, the number of users transacting on Grow's platform has increased by 25% to 2.16 crore, while the active users are 1.67 crore. Total customer assets have jumped by 36% to reach Rs 3 lakh crore. However, it registered a slight decline compared to the previous quarter due to mark-to-market losses due to the recent market crash. Despite this, the performance of the mutual funds segment was excellent. There was a huge increase of 61.5% in new SIP registrations and net investment of Rs 25,000 crore came into the platform, which is much better than the growth of the entire industry.
Gro has entered the loan business
Groww is no longer limited to just a broking app. Its new loan (credit) business is also expanding and its share in total profit has reached 4.1%. The management hopes that it will increase further in future. But there are some challenges in the long race. The company's subsidiary 'Fisdom' and its own asset management (AMC) business are still in the initial investment phase, where they have suffered losses of Rs 10 crore and Rs 21 crore respectively during the quarter.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
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