Groww Q3 Results: Double-Digit Growth in Profit and Revenue
Billionbrains Garage Ventures Ltd., the parent company of Groww, has reported a double-digit sequential growth in revenue and profit in the third quarter of the current financial year. The company’s consolidated top line stood at Rs 1,216 crore in the October-December period, compared to Rs 1,018 crore in the preceding quarter, according to an exchange filing on Wednesday.
Revenue for the quarter was up 19.44% at Rs 1,216 crore, compared to Rs 1,018 crore in the previous quarter. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a significant increase, rising 19.37% to Rs 720.8 crore, compared to Rs 603.8 crore in the previous quarter.
The company’s EBITDA margin, however, saw a slight decline of three basis points to 59.27%, compared to 59.31% in the previous quarter. Net profit for the quarter stood at Rs 547 crore, accounting for gains of up to 16.13% compared to the previous quarter.
Stake Sale in Groww AMC
Along with the Q3 results, Groww also announced a stake sale in Groww AMC, shedding a stake of around 4.99% for Rs 580 crore. Groww AMC is a wholly-owned non-material subsidiary of Billionbrains Garage Ventures. State Street Global Advisors is set to acquire the selling stake in Groww AMC.
The stake sale is expected to have a positive impact on Groww’s financials, as it will help the company to reduce its debt and increase its cash reserves. This, in turn, will enable Groww to invest in its core business and expand its operations.
Market Reaction
After announcing its Q3 earnings, shares of Groww had fallen as much as 3.5% in trade on Wednesday. However, the stock has since recovered to Rs 164 levels. The market reaction to the Q3 results was muted, as investors were expecting a strong performance from the company.
Earlier in the day, Citi initiated coverage on Groww with a ‘buy’ rating and a target price of Rs 195. In its note, Citi highlighted that both Groww and Angel One have gone from being a market proxy to a one-stop shop for traders, although it pegged Angel One as the preferred pick.
The Q3 results of Groww are a testament to the company’s strong performance and its ability to navigate the challenges of the Indian stock market. With its robust financials and expanding operations, Groww is well-positioned to continue its growth trajectory and deliver value to its shareholders.
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Conclusion
In conclusion, the Q3 results of Groww are a testament to the company’s strong performance and its ability to navigate the challenges of the Indian stock market. With its robust financials and expanding operations, Groww is well-positioned to continue its growth trajectory and deliver value to its shareholders.
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