5PAISA - 5paisa Capital Limited Share Price

Management provided an outlook reflecting optimism despite recent challenges in the capital markets. Mr. Gaurav Seth, MD & CEO, noted that while the implementation of SEBI's new F&O regulations resulted in reduced trading volumes and new customer participation, this creates opportunities for long-term sustainable growth. The overall customer base stood at 4.83 million.

Key forward-looking points include:

• The broking revenue for Q4 FY '25 decreased by 23% quarter-on-quarter, primarily due to a drop in derivative volumes influenced by regulatory changes.
• For the entire fiscal year FY '25, revenue was reported at INR 360 crores, down 9% year-on-year, while profit increased 25% year-on-year to INR 68 crores, enhancing margins from 14% to 19%.
• The average daily turnover (ADTO) fell by 36% to INR 1.93 trillion in Q4 FY '25.
• The company successfully acquired 91,000 new customers in Q4 FY '25 but noted a 19% decline in customer acquisition compared to the previous quarter.
• The client funding book remained stable at INR 260 crores, indicating robust demand despite market conditions.
• The mutual fund AUM increased to INR 1,392 crores, highlighting a shift towards mutual funds amidst increased risk aversion in trading.
• The rollout of new products, including the AI-powered IntraEdge platform, is in the pilot phase, with full deployment expected by early Q2 FY '26.

Management is focused on investing in technology to enhance customer experience and improve product offerings, aiming for a return to historical profitability and performance levels.

Question 1: Prathik Mohra - "What's the reason behind that the quarterly brokerage has been fallen by 22%?"

Answer: You're right. Yes, quarterly brokerage has been reduced by 22%. The primary reasons are twofold: first, this was the quarter where we fully felt the impact of the SEBI F&O regulations, which started in Q3. Second, market activity was muted during Q4, contributing to the decline.

Question 2: Prathik Mohra - "Any planning for increasing of mutual fund AUM?"

Answer: Our hypothesis is that people are becoming more risk-averse, particularly those in F&O trading, leading some to withdraw from the market. These shifts have allowed individuals to put more money into mutual funds, taking advantage of opportunities in quality equities, which is why we've seen an increase in our mutual fund AUM during this period.

Question 3: Rajvansh Bhatia - "Just wanted to find about that IntraEdge platform which is the AI-powered one. So, what is the development there and how are we looking upon like, when are we going to introduce that?"

Answer: IntraEdge is in the pilot phase, and we expect a full rollout shortly. It should be ready by early Q2. We believe it will enhance customer experience and can positively impact our overall broking revenue.

Question 4: Rajvansh Bhatia - "Do you think that would give you the edge in terms of both revenue and other broking?"

Answer: While enhancing features like IntraEdge is crucial for providing our customers with a better experience, the impact on revenue won't be solely reliant on one feature. It aims to serve our existing intraday traders better, and we believe it will have a positive effect on overall broking revenue.