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Zerodha, one of India's largest online brokers, has reported a growth of 60% in its profits and revenues for FY22, founder and CEO of Zerodha, Nithin Kamath said.
Zerodha is one of the most popular retail brokerages in India. It started operations in 2010 with the intent to make the process of dealing in securities simpler. Founder Nithin Kamath founded the brokerage service to break down all hurdles that Indian investors face while investing in terms of cost, support, and technology.
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Where new-age tech companies like Paytm, BharatPe, etc. are struggling to break even, Zerodha has reported growth in profits for 2 consecutive years.
Last financial year, the company reported profits of Rs 1,122 crores and revenues of Rs 2,729 crores. For FY22, its profits grew 60% to Rs 1,800 crores and its revenues grew 58% to Rs 4,300 crores.
Moreover, the client base of the company grew from 3.6 million to 6.2 million users in a year. The company, according to NSE, clocks in 10-12 million orders on a daily basis. The company said that market volatility and a high number of IPOs in FY22 brought in more clients for them.
However, the CEO said that the company is preparing for a downturn with a slowdown in the public markets, "We might probably see growth slowing down in the next 3-6 months. I don't see any companies going for an IPO in the next 3-6 months too, maybe apart from the LIC IPO,” he said.
Moreover, the company is working towards the development of its own Order Management System (OMS). The company currently leverages third-party OMS called Refinitiv. This step comes after the company's OMS froze during trading hours last year, bringing the fury of several investors. Their in-house OMS is set to be active at the beginning of next year.
The company is also awaiting the final nod of the market regulator SEBI for setting up its own Asset Management Company (AMC).
Article by Aman Agarwal.
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