Groww Q2 Results: Profit Surges 25%, Total Income Rises 13%
Groww's parent company Billionbrains Garage Ltd.'s profit rises 24.6% to Rs 471 crore in the second quarter of this financial year. This is in comparison to profit of Rs 378 crore in the previous quarter of this fiscal, according to its stock exchange notification on Friday.
Groww's total income rose 13% in the quarter ended September to Rs 1,071 crore in comparison to Rs 948 crore in the previous quarter.
Revenue advanced by 12.7% quarter-on-quarter for the three months ended September, reaching Rs 1,019 crore. The advance in the revenue was on the back of active users and activity by the existing customers. The company's active users rose 3.2% quarter-on-quarter, led by growth in new user acquisition.
Operating income, or earnings before interest, taxes, depreciation, and amortization rose 25%quarter-on-quarter to Rs 1019 crore. The Ebitda margin expanded to 59.3%.
Groww Q2 Highlights (Cons, QoQ)
Total Income rose 13% to Rs 1,071 crore versus Rs 948 crore.
Net Profit rose 24.6% to Rs 471 crore versus Rs 378 crore.
Revenue rises 12.7% to Rs 1,019 crore versus Rs 904 crore.
Ebitda up 25% to Rs 604 crore versus Rs 483 crore.
Margin at 59.3% versus 53.4%.
In addition revenue per broking order stood at Rs 19.8 in the quarter under review in comparison to Rs 18 in the second quarter of the previous fiscal, the company said in its investor presentation.
MTF book rose to Rs 1,668 crore from Rs 1,036 crore in the first quarter of this fiscal. Disbursements by in-house NBFC in the quarter ended September grew to Rs 144 crore.
Cost increase was largely due to branding related activities, the company explained. However, this was partially offset by lower performance marketing spend.
The company also added that it had generated Rs 471 crore in cash during the second quarter.
Groww Share Price Today
The scrip rose as much as 7.45% to Rs 168.39 apiece on Friday, highest since Nov. 19. It pared gains to trade 6.09% higher at Rs 166.25 apiece, as of 10:43 a.m. This compares to a 0.46% decline in the NSE Nifty 50 Index.
It has risen 24.66% since its listing earlier this month. The relative strength index was at 47.25.
Groww's post-listing dream run hit turbulence this week. The stock had fallen nearly 20% from record highs, wiping out over Rs 22,000 crore in market capitalisation in just two sessions.
The slide comes amid valuation concerns, profit-booking, and the stock's brief entry into the auction segment due to excessive volatility.
Despite the sell-off, Groww still trade well above its IPO price of Rs 114, giving comfort to long-term investors but raising questions about whether the peak froth has cooled.
However, the stock on Friday reversed the decline and reclaimed Rs 1lakh crore market capitalisation.
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