Groww Q1 Results: Topline performance subdued but margins expand from previous quarter

Shares of Billionbrains Garage Ventures Ltd., parent company of the trading platform Groww, fell from the day’s high on Wednesday, July 15, in response to its first quarter results, which were subdued on a sequential basis on the topline front. However, the stock recovered soon after and surged to the day’s high.

Groww’s revenue remained flat on a sequential basis at ₹1,501 crore compared to ₹1,505 crore in the March quarter. Net profit for the quarter grew by 7% to ₹735 crore from ₹686 crore last year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹970 crore, which is a 3.4% growth from the March quarter figure of ₹938 crore, while EBITDA margins expanded by 230 basis points sequentially to 64.6% from 62.3% earlier led by lower other expenses.

The lower other expenses more than offset the rise in employee benefit expenses, which grew by 5% from the previous quarter.

Shares of Groww are now trading 2.8% higher on Wednesday after the earnings announcement at ₹209.48. The stock still trades 100% above its issue price of ₹100 per share.

Groww’s Cash Market share fell 0.7% during the June quarter due to the risk tightening measures. The company highlighted that secured lending via LAS now forms 30% of its overall loan book.

The Margin Trading Facility’s Average Client Funding Book grew 34% on a sequential basis in the June quarter to ₹3,775 crore. Groww AMC’s Assets Under Management (AUM) also grew 32% from the previous quarter to ₹5,491 crore.

This story will be updated with more details.