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Dhwani Mehta made post

Is it true that 5Paisa Capital has turned around to report a profit in the Jun-20 quarter?

Answer
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Khushi Patel answered.
3 weeks ago


5Paisa Capital, a part of the IIFL group, posted net profits of Rs.3.74 crore for the Jun-20 quarter as compared to a net loss of Rs.55 lakh in the quarter ended Jun-19. Interestingly, this is the first time that 5Paisa has reported quarterly profits since its launch in March 2016. The stock was locked in upper circuit in trading on 14 July.

For the Jun-20 quarter total revenues were up by 85% at Rs.42.44 crore. The company managed to improve revenue and profits during a tough quarter on the back of improved trading activity and a successful campaign to curtail costs and expenses. During the quarter, 5Paisa saw its highest ever level of customer acquisition at 1.60 lakhs.

Clearly, 5Paisa is being driven by digital growth and the rush of millennials to start trading in equities. Most of the new clients are extremely tech savvy and that is driving their predominantly app-based on and online trading engines. 5Paisa is a broker and also a DP. It essentially targets retail investors and volume traders on the low-cost DIY mode.