Tiger Global-backed Groww's quarterly profit more than doubles on trading surge Discount brokerage Groww reported a significant surge in quarterly profits, with its consolidated net profit more than doubling to Rs 6.86 billion ($73.73 million) for the quarter ended March 31. This marks a substantial increase from Rs 3.1 billion recorded a year earlier, driven by heightened trading activity in derivatives and commodities amid market volatility sparked by the Middle East conflict. The company, backed by Tiger Global, attributed the growth to increased demand for trading services amid geopolitical tensions, though it issued a cautionary note about potential risks from prolonged market weakness. The firm warned that if the market remains in a weak state due to persistent selling by foreign investors, it could negatively impact investor sentiment, slow the addition of new users, and reduce asset inflows. Despite these concerns, Groww’s transacting user base expanded to 16.7 million during the quarter, representing a 20% year-over-year increase and a 4.7% sequential rise. However, total customer assets declined by 1.1% compared to the previous quarter, indicating a potential shift in user behavior or market conditions. Analysts had previously raised concerns about tightening central bank lending norms and collateral requirements, which could strain brokerage funding and prompt operators to seek additional capital. Higher transaction taxes were also seen as a factor that might curb derivatives trading. Yet, the numbers for the equity derivatives segment showed resilience, with average orders per user rising 43.1% from the previous year. This segment accounted for 55% of Groww’s total income, highlighting its critical role in the company’s financial performance.#middle_east_conflict #angel_one #groww #citi #tiger_global
