Arihant Capital Clocks 18% Intraday Gain As PAT Jumps 54.28% YoY In Q1

Arihant Capital Markets Ltd. (BSE: 511605, NSE: ARIHANTCAP), a leading financial services firm, has announced its unaudited financial results for the first quarter ended on 30 June 2023.

For the quarter ended 30 June 2023 (consolidated), the company reported a growth of 23.04% YoY in revenue from operations, which rose from Rs. 3477.87 Lakhs (Q1FY23) to Rs. 4279.23 Lakhs (Q1FY24). PAT jumped 54.28% YoY, from Rs. 744.94 Lakhs (Q1FY23) to Rs. 1157.74 Lakhs (Q1FY24).

Q1FY24 Highlights:

Client Onboarding: The company has successfully increased its client acquisition rate through a digital-first approach. By implementing an in-house EKYC portal, it aims to achieve complete automation and a seamless onboarding journey, significantly improving user experience. With ambitious goals, it is confident in achieving exponential growth and aspire to onboard 5 lacs (500,000) new customers.

MTF Book: To cater to customers' investment needs in equities markets, the company is intensifying its focus on the funding book. The company plans to raise funds externally to meet the ongoing demand from existing customers and scale its book.

Interest Income: In the quarter ended 30th June FY23, the company's interest income (standalone) amounted to Rs. 1229 lacs, compared to Rs. 1171 lacs in Q1, FY 2023. This further expected to increase continuously out of internal accruals.

R&D Cost: The company is significantly investing in technology to drive operational efficiency, thereby reducing incremental business costs. It expects that the expenditure on technology will be offset by incremental revenue.

Merchant Banking Division Highlights: Revenues for Q1 ended 30th June 2023 stood at Rs. 60.37 lacs, as compared to Rs. 16.96 lacs in Q1, FY 2023, and Rs. 11.86 lacs in Q1, FY 2022. The company is positive about the outlook for FY 2024, having achieved a major breakthrough by securing the mandate for a Main Board IPO. With additional opportunities on the horizon, including a mainboard IPO and a major Open Offer, it foresees a strong income trend continuing from the June quarter.

Institution Highlights: The company's Institution Division experienced notable growth, with revenues reaching Rs. 172 lacs in Q1 ended 30th June 2023, up from Rs. 115 lacs in Q1, FY 2023. The company added distinguished FIIs as clients, with more potential partnerships in the pipeline. The company's upgraded ratings from some Mutual Funds clients attest to their commitment to service excellence. Planning to further expand their clientele, including marquee family offices, corporates, and PMS, it aims to achieve double-digit growth in the current year. The company was also ranked among the top 25 ratings in the Institutional setup last year by Asia Money, demonstrating their ongoing efforts to ascend further in the rankings.

Established in 1992 by Mr. Ashok Kumar Jain, Arihant Capital Group had its origins as a boutique stock broking firm operating in Central India. Over the years, the company has grown exponentially, and today, it stands as a prominent financial services entity in India under the name Arihant Capital Markets Limited.

Arihant Capital Markets Limited has diversified its offerings, providing a comprehensive range of financial products and services. These encompass equities, commodities, currency trading, financial planning, depository services, personalized portfolio management (PCG) services, merchant banking, and investment banking solutions. By catering to individuals, corporations, and financial institutions alike, the company is dedicated to providing prudent financial guidance and facilitating wealth generation for its clients.

With a wide-reaching presence, Arihant Capital Markets Limited extends its services to over 2 lakh customers across more than 200 cities through a network of 750 plus investment centers. The company's widespread footprint is a testament to its commitment to reaching out to a diverse clientele and delivering top-notch financial services across the nation.

On Monday, the shares of Arihant Capital Markets closed on the BSE at Rs 59.19 apiece up by 17.98% from the previous close of Rs 50.17. The stock made a 52-week-high of Rs 87.00 on (12/09/2022) and a 52-week-low of Rs 33.01 on (27/03/2023).