The broking industry is set to clock around ₹28,000 crore revenue for the current financial year (FY22), which is a boost of 30% over last year, according to an announcement by rating agency Icra.
However, after a record run, the business is fixed for a muted growth next fiscal despite the outlook being stable, Icra announced.
According to the agency, this expansion illustrates into a net addition of 28.33 lakh accounts per month in the present fiscal, which doubled the monthly addition of 11.91 lakh in FY21 and 4.1 lakh a month in FY20.
Other than the raised trading volume, the average investment by investors also boosted during the year, directing to higher revenues, as the broking fee is founded on trading volume. For instance, among the retail-focused brokerages, the average revenue per effective client rose 25 per cent to ₹12,788 in FY21 from ₹10,238 in FY20.
The report is founded on 18 brokerages which on average witnessed revenue growth of around 38%. The influx of retail investors to the demand is also evident from the 179% boost in trading volumes during the early nine months of FY22.
Average daily turnover surged 126 per cent to ₹63.07 lakh crore during the first nine months of FY22 from ₹27.92 lakh crore in FY21 and ₹14.39 lakh crore in FY20, announces the report, adding however the market will be very volatile following fiscal amid several domestic and international headwinds.
An inspection of the 10 top retail-oriented broking firms indicates that aggregate capital market loan book comprising margin funding, loan against securities, employee stock ownership plan funding, increased by 141% to ₹11,076 crore as of March 2021 from ₹4,591 crore in March 2020, and followed to ₹18,643 crore as of September 2021, bobbing at 68% on-year.
Among the sample of retail-focused brokerages, average revenue per active client increased to 25% to ₹12,788 in FY21 from ₹10,238 in FY20.