Angel One Shares Slump 13% After Sequential Decline In Q3 Profit, Ebitda

Shares of Angel One Ltd. slumped 13% on Tuesday after its third-quarter profit declined sequentially due to higher operating expenses.

The company's consolidated net profit fell 14.5% quarter-on-quarter to Rs 260.30 crore in the quarter ended December, according to an exchange filing. Ebitda declined 13% to Rs 364.1 crore during the same period.

Higher operating expenses due to a larger client base, growth in cash orders, and modifications in the intraday tariff structure led to the sequential fall, the company said in its investor presentation.

Angel One's gross client acquisition increased 16.2% quarter-on-quarter.

However, despite a sequential fall, the company reported 15.92% annual growth in its net profit.

"The cost-to-income ratio increased significantly to 56% (vs. our estimate of 48.8%), an increase of 730 basis points sequentially. Expenses came in 13% higher than our estimates. This is because admin and other expenses came in 17% higher than expectations," said Motilal Oswal.

The brokerage said it will review the target price of the stock while maintaining a 'buy' rating on Angel One.

• Total Income up 1% at Rs 1,060.8 crore.

• Net profit down 14.5% at Rs Rs 260.30 crore.