Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — Q3 FY23 Earnings Presentation
34 slides from Anand Rathi Wealth's earnings presentation, Jan 12, 2023
Slide 1: Submission of Investor Presentation
ANANDRATHI P1, J .... Weal ,. J ,complicated Ref No: 77 /2022-23 Dated: January 12, 2023 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Bondra Kurla Dalal Street, Mumbai -400 001 Complex
Slide 2: Investor Presentation
Investor Presentation Qu arter & N in e M ont h s E n d ed 3 1 st D ec emb er 2 0 2 2
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Anand Rathi Wealth Limited (the “Company ”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Strong 9M FY23 Financial Performance (Consolidated)
STRONG 9M FY23 FINANCIAL PERFORMANCE (Consolidated) Profit Before Tax (Rs. Crs.) Profit After Tax (Rs. Crs.) & Total Revenue (Rs. Crs.) AUM (Rs. Crs.) & PBT Margins PAT Margins 3 2 % Yo Y 3 7 % Yo Y 3 7 % Yo Y 2 0 % Yo Y 39.8% 41.0% 30.6% 412 29.7% 38,517 169 126 32,171 311 124 92 9MFY22 9MFY23 9MFY
Slide 5: Private Wealth Business
ANANDRATHI Private Wealth. uncomplicated
Slide 6: One of the Leading Private Wealth Solutions Firm in India
ONE OF THE LEADING PRIVATE WEALTH SOLUTIONS FIRM IN INDIA Who we are… Presence across India One of the leading non-bank sponsored B-C wealth solutions firms in India & have P been ranked amongst the top three non -bank sponsored mutual fund distributors in India by gross commission Started in 2002,
Slide 7: Focused on More Rewarding HNI Segment
FOCUSED ON MORE REWARDING HNI SEGMENT S h a re i n C u r re n t AU M ( % ) * T h e s e we re m o stl y H NIs w h e n th ey we re o n - b o a rd ed a n d h ave s u bs e quently e l evate d a s U H NIs R s . 5 0 C ro re s 16.6% o ve r a p e ri o d o f ti m e (PY 16.4%) a n d a b o ve R s . 5 C ro re s
Slide 8: Offer End-to-End, Process Driven, Standardized & Well Researched Solution
O F F ER EN D - TO- END, P RO CES S D R I V EN , STA N DA R D IZED & WEL L R ES EA RCHED S O LU TI ON Standardized Solution Client goals Discussion with clients on investment Consistent client outcomes principles, risk and portfolio strategy Provide comparative investment options Ability to build an
Slide 9: Key Highlights for 9M FY23 – Private Wealth Business
KEY HIGHLIGHTS FOR 9M FY23 – PRIVATE WEALTH BUSINESS Profit Before Tax (Rs. Crs.) Profit After Tax (Rs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) & PBT Margins & PAT Margins 42.2% 31.5% +33% +27% 41.0% 30.6% 397 135 299 107 +37% +37% 168 125 123 91 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23
Slide 10: Key Highlights for Q3 FY23 – Private Wealth Business
KEY HIGHLIGHTS FOR Q3 FY23 – PRIVATE WEALTH BUSINESS Profit Before Tax (Rs. Crs.) Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) & PBT Margins & PAT Margins 40.9% 42.8% 43.0% 32.0% 31.9% 30.6% 133 135 48 45 41 104 57 58 43 43 43 32 Q3FY22 Q2FY23 Q3FY23 Q3FY22 Q2FY23 Q3
Slide 11: Private Wealth Performance Metrics
PRIVATE WEALTH PERFORMANCE METRICS Product Wise AUM Mix (Rs. Net Flows (Rs. Crs.) AUM per RM Crs.) & Avg. AUM Yield* 1.51% 1.37% +94% 135 124 12% 12% 3,715 30% 29% 9MFY22 9MFY23 13% 11% 1,914 +74% 1,241 Clients per RM 45% 48% 712 Dec-21 Dec-22 Q3FY22 Q3FY23 9M FY22 9M FY23 30 27 Others Market Linked
Slide 12: Advantages of Client Vintage and Stickiness
ADVANTAGES OF CLIENT VINTAGE AND STICKINESS Client Attrition Client Vintage (Nos.) Client (AUM) Vintage Net Client Addition (Nos.) (% of AUM lost)* 6,910 8,202 274 0.98% 0.93% 232 25% 21% 39% 45% Q3FY22 Q3FY23 Q3FY22 Q3FY23 1,120 1.43% 75% 79% 1.17% 801 61% 55% Dec-21 Dec-22 Dec-21 Dec-22 9MFY22 9MF
Slide 13: Increasing Share of Higher Vintage Relationship Managers
INCREASING SHARE OF HIGHER VINTAGE RELATIONSHIP MANAGERS Vintage Wise Relationship 253 277 Managers (Nos.) 96 125 277 66 60 2 4 R M s i n c re a s e d 91 92 in last 12 months Dec-21 Dec-22 > 5 Year 3 to 5 Year <3 Year 2.47% Regret RM Attrition* 1.09% O n e o f t h e l o w e s t re g re t 0.41% R M a
Slide 14: Outperforming the Guidance
OUTPERFORMING THE GUIDANCE Guidance given for FY23 Actuals for 9M FY23 Particulars* % Achieved Revised Guidance (Rs. Crs.) (Rs. Crs.) Asset Under Management 39,000 37,500 96.2% 40,000 (AuM) Revenue 495 397 80.2% 525 80.6% Profit After Tax 155 125 165 *PWM Vertical 13
Slide 15: Ranked Amongst the Top Three Non-Bank Sponsored Mutual Fund Distributors
RANKED AMONGST THE TOP THREE NON -BANK SPONSORED MUTUAL FUND DISTRIBUTORS Anand Rathi Wealth Limited has been ranked amongst the top three non-bank sponsored mutual fund distributors firms in India Gross Rank based on Gross Yield (%)* for Rank based on Name of Distributor^ Commission Gross Commissio
Slide 16: India's Wealth Story to unlock in coming years
India’s Wealth Story to unlock in coming years… A n an d R at h i We al t h : We l l , p o i s e d to g ro w ex p o n e nt iall y
Slide 17: Industry Growth Drivers
INDUSTRY GROWTH DRIVERS Increasing Penetration of Mutual Fund Market in India Assets managed by the Penetration of MF Industry Indian mutual fund industry (AUM to GDP Ratio - India V/S Other (Rs. Lakh Crores) Economies) Further, India accounts for less than 2% of the global mutual fund industry, r
Slide 18: Huge Market Potential
HUGE MARKET POTENTIAL Strong macro-economic trends and a growing HNI families expected to drive growth in the Indian wealth solutions space Individual’s Financial Assets (INR trillion) 2025E INR 97.3 Trillion 21.93% Financial assets as Mutual fund assets to CAGR % of total assets to 512.2 grow 2.3x
Slide 19: Digital Wealth - New Age Business
Digital Wealth - New Age Business
Slide 20: Digital Wealth – Strategy, Philosophy & Opportunities
1. DIGITAL WEALTH – STRATEGY, PHILOSOPHY & OPPORTUNITIES Leveraging technology to cater to the mass affluent segment through a Phygital Model Comprehensive packaged solution delivered through a fully variable and scalable business model, leveraging technology DW – A Holistic Solution Algo driven rea
Slide 21: Digital Wealth: Scaling Up with the Use of Technology
DIGITAL WEALTH : SCALING UP WITH THE USE OF TECHNOLOGY Customer Segment : Mass Affluent having existing financial assets: Rs. 10 lakhs – Rs. 5 crores AuM (Rs. Crs.) Unique Approach to Wealth Solutions +24% +7% 949 1,017 823 Dec-21 Sep-22 Dec-22 Delivers service Seeks to build a Attempts to build a t
Slide 22: Omni Financial Advisor (OFA) – New Age Business
Omni Financial Advisor (OFA) – New Age Business
Slide 23: OFA – Provides a Technology Platform to the MFDs & Their Clients
2. OFA – PROVIDES A TECHNOLOGY PLATFORM TO THE MFDs & THEIR CLIENTS Target Segment – ARN Holder (Certified Mutual Fund Distributors) Top 3 Pain Points of The Anand Rathi OFA Our solution MFD’s Advantages Lack of Infrastructure & Mobile –led Tech Tech with small MFDs Superior Technology Infrast
Slide 24: OFA – Leveraging Technology to Cater to the Retail Segment
OFA – LEVERAGING TECHNOLOGY TO CATER TO THE RETAIL SEGEMENT Key Functionalities : Subscription Model, MFD and his Clients get access to our platform. (MFD – Web + Mobile, MFD’s Clients – Mobile) Mutual Fund Distributors (Nos.) 5,439 5,669 Client Business 5,164 engagement dashboard Goal planning Dec-
Slide 25: Leadership Team
ANANDRATHI Private Wealth. uncomplicated
Slide 26: Board of Directors
BOARD OF DIRECTORS Mr. Anand Rathi Mr. Pradeep Kumar Gupta Mr. Rakesh Rawal Chairman & Non-Executive Director Non-Executive Director Executive Director & CEO Mr. Mohan Tanksale Mr. Ramesh Chandak Mr. K. G. Somani Mrs. Sudha Navandar Independent Director Independent Director Independent Director Inde
Slide 27: Key Leadership Personnel
KEY LEADERSHIP PERSONNEL Mr. Rakesh Rawal Mr. Feroze Azeez Mr. Jugal Mantri Chief Executive Officer Deputy Chief Executive Officer Group Chief Financial Officer • Master’s Degree in management studies from • Post Graduate Diploma in Management – majors • Rank holder Chartered Accountant and Senior t
Slide 28: Key Personnel – Business & Financial Heads
KEY PERSONNEL – BUSINESS & FINANCIAL HEADS Mr. Chethan Shenoy Mr. Rajesh Bhutara Mr. Niranjan Babu Ramayanam Director & Head – Product & Chief Financial Officer Chief Operating Officer Research Mr. Arjun Guha Mr. Bharath Rathore Ms. Protima Dhawan Executive Director & Unit Head, Executive Director &
Slide 29: Strong Growth Momentum…To Continue
Strong Growth Momentum…To Continue
Slide 30: Consolidated Profit & Loss Summary
CONSOLIDATED PROFIT & LOSS SUMMARY Particulars (Rs. Crs.) Q3 FY23 Q3 FY22 Y-o-Y Q2 FY23 Q-o-Q 9M FY23 9M FY22 Y-o-Y MF – Equity & Debt 50.0 42.5 46.9 141.1 111.2 Distribution of Financial 86.8 62.1 88.0 260.9 190.3 Products IT Enabled Services 1.2 1.1 1.2 3.6 3.5 Others 2.2 3.0 2.0 6.2 5.9 Total Rev
Slide 31: Historical Trends
HISTORICAL TRENDS Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) EPS (Rs.) AUM (Rs. Crs.) 426 127 30.49 32,906 224 15,264 46 11.07 FY18 FY22 FY18 FY22 FY18 FY22 Mar-18 Mar-22 R s . 4 2 6 c ro re s R s . 1 2 7 c ro re s R s . 3 0 . 4 9 p e r s h are R s . 3 2 , 9 06 c ro re s 17% CAGR 29% CAGR 29% CA
Slide 32: Historical Financials
HISTORICAL FINANCIALS Particulars (Rs. Crs.) FY19 FY20 FY21 FY22 H1 FY23 MF – Equity & Debt 104.0 99.6 90.2 154.0 91.2 Distribution of Financial Products 169.0 227.7 170.6 258.8 174.2 IT Enabled Services 3.6 4.6 4.5 4.8 2.4 Others 7.5 4.6 13.9 8.1 4.0 Total Revenue 284.1 336.4 279.2 425.7 271.6 Empl
Slide 33: Historical Balance Sheet
HISTORICAL BALANCE SHEET Assets (Rs. Crs) Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Equity & Liabilities (Rs. Crs) Mar-19 Mar-20 Mar-21 Mar-22 Sep-22 Non - Current Assets Total Equity Property Plant & 7.5 8.9 7.2 80.8 91.4 Share Capital 13.5 13.5 13.8 20.8 20.8 Equipments CWIP - 65.4 69.0 - - Other Equity
Slide 34: Thank You!
THANK YOU ! Company: Anand Rathi Wealth Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L67120MH1995PLC086696 CIN: U74140MH2010PTC204285 Mr. Rajesh Bhutara, CFO / Vishal Sanghavi – Head IR Mr. Deven Dhruva / Mr. Abhishek Shah rajeshbhutra@rathi.com / vishalsanghavi@rathi