Good afternoon, ladies and gentlemen. I'm Soumya, moderator for the conference call. Welcome to 5paisa Capital Limited Q1 FY 2025 earnings conference call. We have with us today Mr. Gourav Munjal, Whole-Time Director and CFO, Mr. Ameya Agnihotri, Whole-Time Director and CTO, and Mr. Mehul Jain, Product Head from 5paisa Capital Limited. As a reminder, all participants will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone telephone. Please note, this conference is recorded. I would now like to hand over the floor to the management. Thank you, and over to you.
Hello, everyone. Good afternoon, and welcome to our Q1 FY 2025 earnings call. On this call, I'm joined with Mr. Ameya Agnihotri, Whole-Time Director and CTO, and Mr. Mehul Jain, our Product Head. quarter one FY 2025 has been an excellent quarter for the investors as well as broking industry. During this quarter, both indices, Nifty and Sensex, has touched all-time high and generated good return for the investors. Also, overall industry saw a significant addition of more than 11 million demat accounts. The total demat accounts of this country now stood at INR 16.22 crores. In quarter one FY 2025, we also acquired 2.34 lakh customers, reflecting a 116% growth year-on-year, and our total customer base has reached to 44.7 lakhs.
This small drop in acquisition is a result of our conscious goal that we took from last, from one to two months to improve the quality of customers, which we are acquiring. During the quarter, our ADTO, which stands for Average Daily Turnover, grew to INR 3.67 trillion, a growth of 27% year-on-year. Our client funding book stood at INR 271 crore, a growth of 20% year-on-year, and our mutual fund AUM reaches to INR 1,124 crore, a 90% growth YoY. Coming to our financial performance, in quarter one FY 2025, our broking revenue has grown to INR 40 crore, a growth of 11% year-on-year. Allied income grow to INR 29.7 crore, a growth of 27% year-on-year.
Overall, our total revenue stood at INR 102 crore, which is a growth of 21% YoY. Our employee benefit expense of INR 13.6 crore includes the impact of annual increment of employees, RSU, ESOP cost, and proportionate of annual variable performances incentives. In this quarter, this also includes a one-time positive impact of INR 8.66 crore with respect to unvested ESOP and RSU costs as per Indian Accounting Standard 102. With focused approach on quality customer acquisition, product improvement, and cost optimization, we are happy to report that we have achieved our lifetime highest ever PAT of INR 20.1 crore, which is a growth of 248% quarter-on-quarter and 39% year-on-year, along with PAT margins of 20%.
At last, I want to assure investors that we will continue to work towards product development, investment in technology, customer experience, cost optimization, and we are confident that the same will accelerate our revenue and profitability in coming quarters. Mr. Ameya Agnihotri, our CTO, will now take you through our technology and product key initiatives, and after that, we will be happy to answer your all questions. Ameya, over to you.
Hi, everyone. I am Ameya Agnihotri, CTO and Whole-Time Director of 5paisa Capital Limited. When it comes to products, our primary focus is development is to prioritize digital innovation and maintain a technology-first approach. We continue to make significant advances in our technology and product. Our mobile app now offers enhanced features for option traders, including straddle chains, bulk order placement from the option chain, and seamless execution of custom option strategies. In our FNO 360 product, which is our dedicated platform for derivatives, users can access basket strategy, advised by our technical research team, with defined parameters like max profit, max loss, and break-even points, and execute them in single click. We have also introduced a new feature for our web platform users, scan and pay via QR code, for quick and easy fund transfers using our UPI app.
It's designed to make adding funds faster and more convenient than ever. In our pursuit to provide best-in-class product experience to our users, we have made significant progress there as well. We are happy to report that our revamped mobile app for both iOS and Android will be live and available to our users by end of Q2 FY 2025. Trade Station 2.0, our revamped web platform previously in beta, is now accessible to all users, offering enhanced user interface and a smoother experience for high-end traders. We'll continue our pursuit of technical excellence and modernize application and infrastructure in coming quarters. With summary of our performance as explained by Gourav and me, I open the floor for further discussion. Please feel free to ask questions if you have any. Operators, you may proceed.
Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question.... If you would like to withdraw your request, you may do so by pressing star and one again. We will wait for a moment while the question queue assembles. I repeat, ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. Our first question comes from Vidur Dayal, an individual investor. Please go ahead. Please go ahead with your question, sir. There is no response from the line. Our next question comes from Aaliya Sarnobat, from MOFL. Please go ahead.
Yeah, I wanted to know what is the market share of cash on F&O?
Our market share stand between 2%-2.5% for both cash segment as well as FNO segment.
Yeah. Thank you so much.
Thank you. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. We have a follow-up question from Vidur Dayal, an individual investor. Please go ahead. Vidur, sir?
Yeah.
There is no response from the line. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. We will wait for a moment while the question queue assembles. I repeat, ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. Our next question comes from Sumit Jangra, an individual investor. Please go ahead.
Thank you for providing the opportunity. My question is related to lending. Some players are entering into the lending business. So going forward, for next five to 10 years, how do you see this business growing in terms of broking along with the broking business for cross-selling income, in terms of cross-selling income?
So yes, it is important, you know, aspect for the cross-selling, but right now, 5paisa is fully concentrated on the broking business. As of now, there is no plan to do any lending business, and that's our stand as of now.
Okay. Thank you, sir.
Thank you, sir. Our next question comes from Vidur Dayal, an individual investor. Please go ahead.
Hello?
Please go ahead with your question, sir.
Can you hear me?
Yes, sir, we can hear you.
Yes, yes.
Yeah. My first question is, could you help us understand the circumstances around the departure of Narayan Gangadhar, and is he still part of the IIFL Group? Second question is that the ESOP reversal that has happened, is this linked to the ESOPs that were given to Narayan Gangadhar? And the third question I had was that, you know, in one of the conference calls, he had said that we are looking to double our market share from 3.3%. Then the following quarter, our market share, I think, dipped to 2.5%. So are we still aiming at that 6%-7% sort of market share?
My final question is that, you know, all this regulatory action around high-frequency traders and options trading and curbing of all this, you know, we haven't really been able to grow the company very well in the last four years when the market has exploded, right? So in case there are curbs, do we have any strategies for diversification of our revenue? Because if the market itself starts to slow down in terms of customer acquisitions, then how are we going to play this market? Thank you.
Okay. So, Mr. Narayan Gangadhar is still a part of, you know, IIFL Group, and we have disclosed in, as per, in our exchange, filing also. And, yes, the major portion of the, in this quarter, reversion effect of RSU is related to the Mr. Narayan Gangadhar, sir, and some other employees also. Regarding the regulatory changes, yes, actually, we do have a 16 crore demat account in the industry, and it is growing 30% annually. So regulators are bound to create these kind of steps, but we have seen in the past that whatever the changes has happened, it has not impacted much on volumes, rather it has grown up in the past also.
If you see our, you know, that peak margin, then segregation of client securities, then upstreaming of clients, and then quarterly payout, and now we have another regulations may come. But we have seen in every step, the volume has grown up. Coming to the this regulation side, which, you know, anticipated that now there is, there will be a INR 20 lakh minimum value will be required for option selling to enter into option contract, and there will be a few expiries. We feel that, yes, it can impact our volume, but we need to see at what extent it is going to impact.
Lastly, yes, we were, we had the 3%-3.5% of market share earlier, and over the last one year it has fallen to 2%-2.5% . We are still continue to working towards 6% market share, and for that, we understand that only the quality acquisition will work. We don't want to acquire customers just for the sake of the numbers. And, we are really having a diversified strategy internally and the key metrics in terms of RPC, CAC, so that our ADTO market share will grow in future. I hope, Vidur, I answered all the questions.
Yes. Can you still hear me?
Yes. Yes.
Yeah, just one final question for the Ameya, that, you know, Narayan also spoke about how our product had not seen any investment for a long time. You know, the iOS and the Android app didn't work in sync and were, you know, separately built up. The web application and the website also didn't work very well. So is there any update on the product? Are we... Do, do we think we have a robust product, or we still think that we're lagging in terms of having a, you know, product which we can target for the 6%, 7% market share that you're talking about?
Yes.
You know, I understand the answers that you're giving, but please understand that the company has been dropping market share for a while. You know, generic comments don't inspire confidence. Is there a search for a new CEO? When is the new CEO expected?
Sure. So I will answer the technological questions. Yeah, I will answer the tech-related part. The CEO-related part, Gourav will take up. So like, Narayan had mentioned earlier, we did not have updated apps for iOS and Android. As articulated earlier, our mobile app for iOS and Android are ready and are in sync. And by end of Q2 FY 2025, they will both be available for all the retail users. And the effort has already been underway, and they are ready. So that is a good progress that we have made there.
Apart from that, in terms of our web experience, Trade Station 2.0, which is our revamped web platform, previously in beta, is now available for all the users, and that also is an enhanced user experience and smoother experience for high-end traders. So in terms of, you know, revamping and investing in our technology, particularly user experiences for mobile as well as for web, we have made significant progress. Over to you, Gourav.
Second, regarding that CEO, yes, the search is on, and we will update the investors as soon as we got the clarification on that.
Okay. Thank you.
Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. I repeat, ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. We will wait for a moment while the question queue assembles. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. There are no further questions. Now I hand over the floor to the management for closing comments.
Yeah. Thank you for joining us on the call today. I hope we have been able to answer all your queries. If you require any assistance or have further queries, please feel free to get in touch and mail us at ir@5paisa.com.
Thank you, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using-