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Tag: Zerodha

  • Groww Clocks Rs 805 Crore Net Loss In FY24, Revenue Up 119 Per Cent | Economy News

    Bengaluru: Online brokerage firm Groww on Monday reported a net loss of Rs 805 crore in FY24, after paying about Rs 1,340 crore as a one-time tax on its domicile movement to India earlier this year. 

    The company clocked Rs 3,145 crore in revenue for the fiscal ending March 31, 2024, a 119 per cent growth from FY23 at Rs 1,435 crore. Groww said it maintained its operational profitability of Rs 535 crore for FY24 compared to Rs 458 crore for FY23.

    The full-stack financial services platform continued its growth trajectory with 2.2 times increase in scale on a consolidated basis for last fiscal. In comparison, its rivals Zerodha and Angel One reported revenues of Rs 8,370 crore and Rs 4,272 crore, respectively, in the last fiscal.

    Groww became the first stock broker in the country to cross 1 crore active investors earlier this calendar year. As of October, Groww’s active stock investor base stood at 1.2 crore.

    The online brokerage said it has emerged as the preferred mutual funds investing platform for retail investors, with nearly one in four new SIPs in the country happening via Groww.

    Last year, Groww ventured into consumer lending, payments, and asset management through subsidiary businesses.

    The top five discount brokers accounted for 64.5 per cent of total NSE active clients in September compared to 61.9 per cent in the same month last year.

    While online brokerage Zerodha reported a 1.1 per cent (on-month) increase in its client count to 8 million, with a 20bp fall in market share to 16.6 per cent, Groww reported a 3.1 per cent increase in its client count to 12.3 million, with a 15bp rise in market share to 25.6 per cent.

  • Zerodha Bracing For Big Revenue Hit Later This Year: CEO Nithin Kamath | Economy News

    New Delhi: Zerodha’s Co-founder and CEO, Nithin Kamath, said on Tuesday that the company is witnessing a plateau in revenue and profits and is preparing for a significant revenue hit later this year.

    In a blog post, Kamath mentioned that SEBI’s true-to-label circular will go live on October 1, 2024, and added, “We expect a 10 percent dip in revenue.”

    SEBI recently published a consultation paper on index derivatives, which was open for public comments.

    “We expect this paper to turn into regulation sometime in the next quarter. Currently, index derivatives constitute a significant portion of our revenue, and any changes will impact us. We anticipate a 30 to 50 percent drop in revenue,” said the Zerodha CEO.

    The Securities Transaction Tax (STT) will also increase from October 1.

    While the impact on options trading is minimal, “we anticipate a significant impact on futures trading.”

    “The amount of Annual Maintenance Charges (AMC) we collect will change with the new Basic Services Demat Account (BSDA) thresholds set by the regulator. Essentially, we can now charge full AMC from customers with demat holdings of Rs 10 lakh or more, compared to Rs 4 lakh today. Combined with the removal of the account opening fee, this will lead to a meaningful drop in revenue,” Kamath explained.

    Zerodha’s total current assets under custody, which include all assets held in its demat accounts, amount to Rs 5.66 lakh crore.

    “The exciting part of this figure is that our customers, as a whole, are sitting on unrealised profits of over Rs 1 lakh crore,” the CEO shared.

    Regarding the company’s IPO, Kamath emphasized that an IPO is not the end but rather a new beginning.

    “When retail investors enter the cap table, the company must be able to predict revenue to some extent. In the last 14 years, I have never once accurately predicted revenue growth or dips. Our business, while appearing strong based on financials, can change in an instant due to regulatory shifts or unfavorable market conditions,” Kamath explained.

  • Zerodha CEO Nithin Kamath Is On The Path To Recovery After Experiencing Mild Stroke | Companies News

    New Delhi: Zerodha’s Co-founder and CEO, Nithin Kamath, recently disclosed that he experienced a minor stroke approximately six weeks ago, leading him to question why someone as healthy as himself could be impacted.

    In a post shared on X (formerly Twitter), Kamath mentioned that factors ranging from inadequate sleep and fatigue to the recent loss of his father could have contributed to the occurrence.(Also Read: Mark Zuckerberg Learns Skill Of Traditional Japanese Sword Making; Watch Video)

    Around 6 weeks ago, I had a mild stroke out of the blue. Dad passing away, poor sleep, exhaustion, dehydration, and overworking out —any of these could be possible reasons.

    I’ve gone from having a big droop in the face and not being able to read or write to having a slight droop… pic.twitter.com/aQG4lHmFER


    — Nithin Kamath (@Nithin0dha) February 26, 2024

    “Around 6 weeks ago, I had a mild stroke out of the blue. Dad passing away, poor sleep, exhaustion, dehydration, and overworking out — any of these could be possible reasons,” he posted. (Also Read: MobiKwik Unveils ‘Pocket UPI’ For Payments Without Linking Bank Account)

    Kamath mentioned that he is currently recovering.

    “I’ve gone from having a big droop in the face and not being able to read or write to having a slight droop but being able to read and write more. From being absent-minded to more present-minded. So, 3 to 6 months for full recovery,” the Zerodha CEO added.

    He wondered why a person who’s fit and takes care of himself could be affected like this. “The doctor said you need to know when you need to shift the gears down a bit,” said Kamath, posting an image of him in the hospital.

    “Slightly broken, but still getting my treadmill count,” he added.

    Zerodha reported a revenue of Rs 6,875 crore and a profit at Rs 2,907 crore for the financial year 2022-23 (FY23), representing a 38.5 per cent and 39 per cent growth in revenue and profit, respectively, as compared to the previous financial year. In FY22, the company had reported revenue of Rs 4,964 crore and a profit of Rs 2,094 crore. (With Inputs From IANS)