Stock-broking giant Zerodha has again made the news. The firm has reported a massive 86% increase in profit to Rs 2,094 crore against the revenue of Rs 4,964 crore in the financial year 2021-22.
Comparing these numbers with the previous financial year, Zerodha had reported Rs 1,122 crore in profit against the revenue of Rs 2,729 crore.
Employee benefit expenditure in FY22 surged 45.3% to Rs 459 crore, including Rs 77.5 crore in share-based payments to employees, Entrackr reported, citing the company’s consolidated annual financial statements with the Registrar of Companies (RoC).
The company makes money from brokerage fees, the sale of its premium offerings such as Kite Connect API, user onboarding collections, and exchange transaction charges collected from clients on behalf of various securities exchanges.
The earnings from these collections went up by 83.3% to Rs 4,129 crore in FY22 from Rs 2,252 crore in FY21.
Its interest income increased 43.4% to Rs 614.5 crore in FY22, while it also cornered Rs 220.5 crore from other operations, which include dividend income and net gain on fair value changes.
“While we are on track to do as much revenue and profits as last year, even this year, we think we will be unable to match the current revenues and profitability from the next financial year for a few more years,” said Nithin Kamath in his blog post.
“This is not just because we see a dip in new account openings and a drop in the bull market momentum, but also because we think we have temporarily hit a plateau in terms of the target market, customers who have sufficient savings to invest in the markets, and an ability to generate revenue for the brokerage firm,” Nithin Kamath wrote.