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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.”
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