Nithin Kamath says Zerodha earned 4,700 crore in FY24, ₹1 lakh crore profit of traders
Zerodha's FY24 profit soared 62% to ₹4,700 crore, with revenue up 21% to ₹8,320 crore but regulatory changes may lead to a revenue drop of 30% to 50%.
Zerodha saw its FY24 profit rise 62% to ₹4,700 crore, while its revenue grew 21% to ₹8,320 crore in the last financial year, Nithin Kamath said. During the same period, traders on the platform are sitting on unrealized profits of more than ₹1 lakh crore, he shared.
Read more: Zerodha is expecting a major revenue dip soon, Nithin Kamath shares
"Zerodha’s total current assets under custody, i.e., the total assets held in our demat accounts, stand at ₹5.66 lakh crores. By the way, this equals ten crore rows of holdings. The credit goes to the roaring bull market, massively increased retail participation, and a super hot IPO market, and the trust of our clients. The exciting bit about this number is that our customers as a whole are sitting on an unrealised profit of more than one lakh crores," Nithin Kamath said in a blog post.
"Given the profitability of the last three years, our networth is almost ~40% of the customer funds that we manage. It makes us one of the safest brokers to trade with," he said.
Read more: Zerodha's Nithin Kamath is loving ‘ghar-wapsi’ of Indian firms: ‘How the tables turn’
But owing to regulatory changes, Zerodha is also bracing for a big revenue hit later this year, he said, adding, “Index derivatives today are a significant portion of our revenue, and any change will impact us. We anticipate a 30% to 50% drop in revenue.”
{{/usCountry}}But owing to regulatory changes, Zerodha is also bracing for a big revenue hit later this year, he said, adding, “Index derivatives today are a significant portion of our revenue, and any change will impact us. We anticipate a 30% to 50% drop in revenue.”
{{/usCountry}}"The amount of Annual Maintenance Charges (AMC) we collect changes with the new Basic Services Demat Account (BSDA) thresholds set by the regulator. Essentially, we can charge full AMC from customers with a demat holding of ₹10 lakhs and more, as opposed to 4 lakhs today. Combined with us removing the account opening fee, this would be a meaningful drop in revenue," he said.
Read more: Nithin Kamath warns of fake trading apps that are ‘too good to be true’: ‘Always remember…’
{{/usCountry}}"The amount of Annual Maintenance Charges (AMC) we collect changes with the new Basic Services Demat Account (BSDA) thresholds set by the regulator. Essentially, we can charge full AMC from customers with a demat holding of ₹10 lakhs and more, as opposed to 4 lakhs today. Combined with us removing the account opening fee, this would be a meaningful drop in revenue," he said.
Read more: Nithin Kamath warns of fake trading apps that are ‘too good to be true’: ‘Always remember…’
{{/usCountry}}Assuring that Zerodha is prepared for such a scenario, Nithin Kamath said, “We are well covered to get over the lull period with a lean team, efficient expenses and infrastructure and material costs, and a strong net worth. Even today, the overall team size stands at 1,200, with the core team responsible for running the business being a small fraction of it.”
