Angel One Q3 results, dividend announcement today; eyes on Anand Rathi bonus

Two financial companies- Angel One Ltd and Anand Rathi Wealth Ltd- are set to announce their results for the quarter and nine-months ended on December 31, 2024 on Monday, January 13, 2025. These companies, along with the earnings may announce other corporate actions for the shareholders following the board meetings.

Angel One's board is likely to consider and approve dividend, while Anand Rathi Wealth may announce a bonus issue for its shareholders in the ratio approved by the board of directors. Brokerages tracking these companies are expecting a muted performance on a quarter-on-quarter (QoQ) basis, while the year-on-year (YoY) growth is seen strong for both the companies.

Market participants believe that brokerage's ecosystem achieved strong growth across parameters with a ramp up in volumes and number of contracts till mid-November, post which the market has seen a drop in F&O volumes due to lower numbers of weekly expiries. This would be a key impact on the revenue stream of discount brokers geared towards F&O segment.

B&K Securities expects Angel One to clock an operational income of Rs 292.1 crore, up 24.2 per cent YoY but down 13.1 per cent sequentially. Ebitda margins may have surged 820 basis points (bps) to 52.3 per cent in Q3FY24, which stood at 44.1 per cent in the year ago period. Net profit is penciled at Rs 376.5 crore, surging 44.1 per cent YoY but falling 11.1 per cent QoQ.

YES Securities expects order volume growth for the whole of 3QFY25 to be broadly along similar lines. "We estimate order volume to decrease by 12 per cent QoQ, based on fees and commission income de-growth of 12 per cent QoQ. The average client funding book is estimated to have grown by 3.6 per cent QoQ, while, for FDs we have assumed a 2 per cent QoQ growth," it said.

It assumes decrease in fees and commission expense in line with the respective revenue items, while making suitable assumptions for other operating expenses, to arrive at 25.6 per cent QoQ degrowth in operating profit. "We finally arrive at a PAT de-growth of 27 per cent QoQ, YES Securities said.

On the other hand, the MF distributor industry continued to witness sustained SIP inflows due to lower redemptions and stable flows over the past few months. However, slight yield compression may persist due to the scheme-level TER framework and cost structures are likely to remain relatively stable over time.

Equirus Securities flattish QoQ growth in revenue from operations at Rs 284 crore, but it may rise 36.3 per cent YoY. Ebitda is likely to come in at Rs 64.1 crore, falling 4.6 per cent QoQ but up 32.2 per cent YoY. PAT is seen at Rs 48.1 crore, down 6.7 per cent QoQ but may increase 34.6 per cent YoY. Revenue yield 7 bps to 91.1 for the reported quarter.

Equirus expects MF AUM growth to decline sequentially owing to MTM losses. It expects Rs 1,450 crore of primary MLD issuances during the quarter and ebitda margin in excess of 40 per cent as it builds in 24 per cent earnings YoY growth. Trends in Opex, AUM mix along with revenue yield comments on mobilization of structured products are key things to watch.