IIFL Wealth Management announced Q2FY23 results: IIFL Wealth Management Ltd reported a Consolidated Profit After Tax of Rs 173 crore for the quarter, up 23% YoY and 8% QoQ, and Rs 333 crore for the half year ended, up 28% YoY Operating Profit Before Tax stood at Rs 410 crore for the half year ended, up 51% YoY Total Revenues stood at Rs 405 crore, up 12% YoY and 10% QoQ, and Rs 774 crore for the half year ended, up 16% YoY Revenue from Operations stood at Rs 382 crore, up 22% YoY and 2% QoQ, and Rs 757 crore for the half year ended, up 27% YoY Annual Recurring Revenues stood at Rs 261 crore up 17% YoY and 5% QoQ, and Rs 508 crore for the half year ended, up 23% YoY Mr. Karan Bhagat, MD & CEO, IIFL Wealth & Asset Management: "Despite a weak global geopolitical and macro environment, our AUM witnessed healthy net flows, coupled with a positive MTM impact during the quarter. Annual Recurring Revenue Assets stood at Rs 155 K crore up 17% YoY and 8% QoQ. This was primarily driven by our efforts in creating and adhering to an optimal asset diversification strategy, complemented by a strong process-driven investment approach. This has helped our clients navigate the volatility of the current investment landscape. The current Quarter has seen more than Rs 6,100 crore of net new flows and strong Profit after Tax (PAT) of Rs 173 crore, growing 8% QoQ. ARR Revenues are steady at Rs 261 crore for the quarter, up 5% QoQ and continue to grow - with more than 68% of Total Operating Revenues being recurring in nature. Our retentions hold steady with wealth management retention at 54 bps, asset management retention at 79 bps and aggregate retention at 59 bps. Our cost to income in the current quarter has remained steady at ~44% as we continue to keep a sharp focus across all expense heads. The wealth management landscape is evolving at a fast clip as a host of factors pave the way to create new opportunities for wealth managers. Some of the early trends that we identified in terms of the changing contours of the industry, inter-generational wealth transfer, and the growth in wealth in Tier 2 cities is now playing out. We are well-positioned to optimally leverage these trends and further lead the industry with our advisory proposition. Additionally, our focus on alternative investments has held us in good stead as clients are increasingly looking to enhance the risk-adjusted returns of their portfolios through strategies like Credit and Multi-Asset. This quarter, our Tangible ROE has further improved to 28%. In addition, we are happy to report our third interim dividend of Rs 17 and remain committed to our dividend pay-out strategy. In the near term, we are cognizant of the global volatility, which can provide both, challenges as well as opportunities. We continue to look out for exciting new products and opportunity areas, while remaining relatively cautious in our approach. In addition, people and technology remain our key investment themes – we continue to add new talent and deep expertise to the organization." Result PDF