Conference Call with Anand Rathi Wealth Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Capital Markets company Anand Rathi Wealth announced Q2FY25 results Fiinancial Highlights: Total Revenue: Rs 249.6 crore from Rs 189.1 crore (32% increase YoY) Profit Before Tax: Rs 102.2 crore from Rs 77.7 crore (31% increase YoY) Profit After Tax: Rs 76.3 crore from Rs 57.7 crore (32% increase YoY) Earnings Per Share (EPS): Rs 18.3 from Rs 13.8 (32% increase YoY) Assets Under Management (AUM): Rs 75,084 crore from Rs 47,957 crore (57% increase YoY) Mutual Fund distribution revenue increased by 70% YoY to Rs 195 crore. Net inflows grew by 128% YoY to Rs 5,700 crore. Equity Mutual Fund net inflows increased by 64% YoY to Rs 3,116 crore. Share of Equity Mutual Funds in AUM increased to 55% as of September 2024, compared to 50% as of September 2023. Return on Equity (ROE - Annualised) : 44%. The Board of Directors have declared an Interim Dividend of Rs 7 per Equity Share of Face Value of Rs 5 each of the Company (140% of Face Value). Other Highlights: Private Wealth (PW) (Holding Company) Number of Active client families increased by 19% YoY to 10,977. Number of RMs increased by 20% in last 12 months to 374. Zero regret RM attrition for last 15 months. Digital Wealth (DW) (Subsidiary Company) Total Revenue increased by 17% YoY to Rs 14 crore. AUM increased by 32% YoY to Rs 1,826 crore. Omni Financial Advisors (“OFA” ) (Subsidiary Company) Total Revenue increased by 15% YoY to Rs 4 crore. Technology platform provider to Mutual Fund Distributors (MFDs) with 6,188 subscribers (PY: 5,880 MFDs). Rakesh Rawal, Chief Executive Officer, commented on the H1 FY25 results stating: “We are thrilled to announce another exceptional financial result. In H1FY25 our total revenue grew by 35% YoY to Rs 495 crore and Profit after Tax was Rs 150 crore, representing growth of 35% YoY. Our Assets Under Management (AUM) has seen a significant increase of 57% to Rs 75,084 crore. In the first half of FY25, we welcomed 1,066 new client families, bringing our total count of client families to 10,977. In alignment with our policy of rewarding shareholders, we have declared an interim dividend of Rs 7 per share for FY25. India’s growth story is being celebrated as the global economy faces geopolitical challenges and slow growth. As the fastest-growing large economy, India is projected to achieve a 7% GDP growth for FY25, driven by strong domestic demand, government reforms and increased capital expenditure, which has also boosted its market capitalization. In light of such strong economic growth, the company’s prospects are positive, supported by the rising HNI population who are seeking a strategic approach to wealth creation.” Commenting on the same, Feroze Azeez, Deputy Chief Executive Officer said: “India’s strong economic fundamentals have driven increased interest from both domestic and foreign investors. This trend is reflected in consistent inflows into the equity markets, with new investments hitting record highs MoM. Such a positive momentum is expected to strengthen the Indian equity markets further, fostering an environment conducive to long-term capital appreciation and broadening of the investor base. During H1FY25 our total net inflows registered a remarkable YoY growth of 128%, reaching Rs 5,700 crore. Equity mutual fund net inflows achieved YoY growth of 64%, amounting to Rs 3,116 crore. Our client centric approach has resulted in 0.28% client attrition rate in terms of AUM lost during the first half of FY25. We take immense pride in achieving zero regret RM attrition for the fifth consecutive quarter—a true testament to our robust entrepreneurial work culture and unwavering commitment to our team’s growth and satisfaction.” Result PDF
Conference Call with Anand Rathi Wealth Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Capital Markets company Anand Rathi Wealth announced Q1FY25 results: Financial Highlights: AUM Rs 69,018 crore up by 59% YoY Revenue Rs 245 crore up by 38% YoY Profit Before Tax Rs 99 crore up by 40% YoY Profit After Tax Rs 73 crore up by 38% YoY Mutual Fund revenue increased by 70% YoY to Rs 89 crore Net inflows grew by 173% YoY to Rs 3,364 crore Equity Mutual Fund net inflows increased by 462% YoY to Rs 2,091 crore Share of Equity Mutual Funds in AUM increased to 54% as of June 2024, compared to 48% as of June 2023. Return on Equity (ROE - Annualised) : 42.8% Buyback of Rs 164.65 crore (excluding charges and taxes) successfully completed in June 2024. Operational highlights: Private Wealth (PW) (Holding Company) Number of Active client families increased by 19% YoY to 10,382 Number of RMs increased by 17% to 360 in last 12 months Digital Wealth (DW) (Subsidiary Company) Total Revenue increased by 13% YoY to Rs 6.89 crore AUM increased by 48% YoY to Rs 1,727 crore Omni Financial Advisors (“OFA” ) (Subsidiary Company) Total Revenue increased by 18% YoY to Rs 1.84 crore Technology platform provider to Mutual Fund Distributors (MFDs) with 6,064 subscribers (PY: 5,688 MFDs) Commenting on the Q1 FY25 Results, Rakesh Rawal, Chief Executive Officer said: “Indian economy is on a strong footing with GDP expected to grow at 7.2% for this year, making it the fastest growing market globally. In this backdrop, Indian markets have witnessed new all-time highs supported by strong performance of India Inc. With this, we anticipate a noticeable increase in the number of High Net-worth Individuals (HNIs) in the country and thus, creating a huge growth potential for the wealth business. The increase of financial assets in the total pie of household assets has also helped in growth of our AUM by 59% YoY to Rs 69,018 crore as on June 30, 2024. This has aided a revenue increase of 38% YoY to Rs 245 crore and PAT increase of 38% YoY to Rs 73 crore for this quarter. During Q1 FY25, we added 471 client families and crossed the milestone of 10,000 client families, further improving the financial goals of our clients. As part of our endevour to reward shareholders, we successfully concluded the buyback program of Rs 164.65 crore, excluding charges and taxes. With multiple growth drivers in place, we are confident that our company has the potential to grow by 20–25% in the long-term.” Commenting on the same, Feroze Azeez, Deputy Chief Executive Officer said: “India’s strong fundamentals continue to attract investments into the equity markets with incremental inflows recording new highs every month. During Q1 FY25, our equity mutual fund net inflows increased by 462% YoY to Rs 2,091 crore. This continued growth underscores the deep trust and confidence our clientele place in our value proposition. Our systematic and datadriven approach along with a realistic understanding of client needs and risks has been instrumental in achieving these results. Our client base is becoming more informed and data driven, so they understand simple and uncomplicated wealth approach to achieve the objective of around 14%. This is evident from just 0.1% client attrition in terms of AUM lost during the first quarter of FY25. We have successfully maintained our Zero regret attrition of relationship managers for a straight fourth quarter significantly because of the culture created in the organisation. With the Indian economy poised for continued growth, the future is promising and has large opportunities for wealth professionals.” Result PDF
Conference Call with Anand Rathi Wealth Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.