Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — FY2022 Earnings Presentation
33 slides from Anand Rathi Wealth's earnings presentation, Apr 13, 2022
Slide 1: Submission of Investor Presentation cover letter
ANANDRATHI Private Wealth. uncomplicated Ref No: 06/2022-23 Dated: April 13, 2022 BSE Limited National Stock Exchange of India Limited Department of Corporate Services Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Dalal Street, Mumbai — 400 001 Band
Slide 2: Investor Presentation Quarter & Year Ended 31st March 2022
Investor Presentation Quarter & Year Ended 31st March 2022
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 se
Slide 4: Excellent Performance of all Businesses
Excellent Performance of all Businesses Revenue (Rs. Crs.) PAT (Rs. Crs.) AUM (Rs. Crs.) Particulars Business FY22 FY21 Growth FY22 FY21 Growth FY22 FY21 Growth Anand Rathi Wealth Ltd. Private Wealth 408.95 262.25 56% 125.45 44.22 184% 32,054 26,058 23% (Holding Company) AR Digital Wealth Pvt. Ltd.
Slide 5: Private Wealth Business
ANANDRATHI Private Wealth. uncomplicated Private Wealth Business
Slide 6: Key Highlights for Financial Year 2021-22 – Private Wealth Business
Key Highlights for Financial Year 2021-22 – Private Wealth Business AUM (Rs. Crs.) Trail Revenue (Rs. Crs.) Total Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) +23% 32,054 +71% 148 +56% 409 125 +184% 26,058 86 262 44 Mar-21 Mar-22 FY21 FY22 FY21 FY22 FY21 FY22 Return on Equity Active Client Familie
Slide 7: Key Highlights for Q4 FY22 – Private Wealth Business
Key Highlights for Q4 FY22 (Jan to Mar 2022) – Private Wealth Business Trail Revenue (Rs. Crs.) Total Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) 41 110 34 27 70 8 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 52% 57% 335% 6
Slide 8: One of the leading Private Wealth practices in India
One of the leading Private Wealth practices in India One of the leading non-bank wealth solutions firms in India & have been ranked amongst the top three non-bank mutual fund distributors in India by gross commission Started in 2002 as an AMFI registered mutual fund distribution (MFD) business – and
Slide 9: Focused on More Rewarding HNI Segment
Focused on More Rewarding HNI Segment Share in Current AuM* (%) These were mostly HNIs when they were 17.2% on-boarded and have subsequently elevated as UHNIs over a period of time 50.1% Slower and difficult to build, but far more sustainable with long term profitability 32.7% *As on 31st March 2022
Slide 10: Offer end-to-end, process driven, standardized & well researched solution
Offer end-to-end, process driven, standardized & well researched solution Standardized Solution Client goals Discussion with clients on investment Consistent client outcomes principles, risk and portfolio strategy Provide comparative investment options Ability to build and train RM pool internally C
Slide 11: Private Wealth Performance Metrics
Private Wealth Performance Metrics Product Wise AUM Mix (Rs. Crs.) Net Flows (Rs. Crs.) Trail Income coverage as % of Fixed Cost* 26,058 32,054 2,754 36% 46% 17% 80% 12% 1,110 50% 36% 30% 10% 12% FY21 FY22 FY21 FY22 FY21 FY22 Equity MF Debt MF Other Securities Others *including all operating costs e
Slide 12: Advantage of Client Vintage and Stickiness
Advantage of Client Vintage and Stickiness Client Vintage (Nos.) Client Vintage (AUM) 6,109 7,082 52% 57% 72% 77% 48% 43% 28% 23% FY21 FY22 FY21 FY22 > 3 Year 0 to 3 Year > 3 Year 0 to 3 Year Net Client Addition (Nos.) Client Attrition (% of AUM lost) 988 973 2.55% 1.49% Mar-21 Mar-22 FY21 FY22 57.1
Slide 13: Increasing Share of Higher Vintage Relationship Managers
Increasing Share of Higher Vintage Relationship Managers (RMs) Vintage Wise Relationship Managers (Nos.) RMs’ Trail Revenue 40%+ (Nos.) Regret RM Attrition* 271 132 3.50% 233 99 82 81 1.98% 68 70 104 81 FY21 FY22 FY21 FY22 FY21 FY22 > 5 Year 3 to 5 Year <3 Year *RM with 5 Year+ Vintage 12
Slide 14: Outperforming the Growth Guidance
Outperforming the Growth Guidance Guidance given for FY22 Actuals for FY22 Guidance - FY23 Particulars (Rs. Crs.) (Rs. Crs.) (Rs. Crs.) Asset under Management (AuM) 31,900 32,054 39,000 Revenue 400 409 495 Profit After Tax (PAT) 122 125 155 13
Slide 15: India's Wealth Story to unlock in coming years
India’s Wealth Story to unlock in coming years Anand Rathi Wealth : Well poised to grow exponentially
Slide 16: Industry Growth Drivers
Industry Growth Drivers Increasing Penetration of Mutual Fund Market in India Increase in HNI population in India Assets managed by the Indian Penetration of MF Industry In the past three decades, per capita incomes have multiplied mutual fund industry (India V/S Others Economies) (Rs. Trillion)
Slide 17: 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 2025E INR 97.3 Trillion INR 414.8 Trillion Financial Assets (INR trillion) 512.2 Financial assets as 21.93% 12.84% Mutual fund assets to Other % of
Slide 18: Digital Wealth – New Age Business
Digital Wealth – New Age Business
Slide 19: Digital Wealth – Strategy, Philosophy & Opportunities
1. Digital Wealth – Strategy, Philosophy & Opportunities Leveraging technology to cater to the mass affluent segment through a Phygital Model DW – A Holistic Solution Challenges faced by Customers Poor Quality of advice and service due to inadequately skilled, low inexperienced & high attrition ch
Slide 20: Digital Wealth: Scaling up with use of Technology
Digital Wealth : Scaling up with use of Technology Customer Segment : Mass Affluent having existing financial assets: Rs. 10 lakhs – Rs. 5 crores AuM (Rs. Crs.) Total Revenue Client Engagement (Rs. Crs.) PAT (Rs. Crs.) Clients (Nos.) Partners (Nos.) 852 10.8 11.2 0.25 294 316 3,907 3,111 612 0.05 FY
Slide 21: Omni Financial Advisor (OFA) – New Age Business
Omni Financial Advisor (OFA) – New Age Business
Slide 22: OFA - Provides a technology platform to the IFAs & their clients
2. OFA - Provides a technology platform to the IFAs & their clients Target Segment – ARN Holder (Certified Mutual Fund Distributors) with Rs. 5-50 crores of AUM Top 3 Pain Points of IFAs OFA - Our Solutions The Anand Rathi Advantage Lack of Infrastructure & Tech with small IFAs Mobile –led Tech
Slide 23: OFA - Leveraging technology to cater the retail segment
OFA - Leveraging technology to cater the retail segment Key Functionalities : Subscription Model, IFA and his Clients get access to our platform. (IFA – Web + Mobile, IFA’s Clients – Mobile) OFA enables IFAs with unique features such as: OFA provides a co-branded mobile first integrated technology p
Slide 24: Leadership Team
ANANDRATHI Private Wealth. uncomplicated Leadership Team
Slide 25: Board of Directors
Board of Directors Mr. Anand Rathi Mr. Amit Rathi Mr. Pradeep Kumar Gupta Mr. Rakesh Rawal Chairman & Non Executive Director Non Executive Director Non Executive Director Executive Director & CEO Mr. Mohan Tanksale Mr. Ramesh Chandak Mr. K. G. Somani Mrs. Sudha Navandar Independent Director Independ
Slide 26: 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 • MBA in Marketing and Finance from JBIMS, • Post Graduate Diploma in Management – majors in • Rank holder Chartered Accountant and SMP fro
Slide 27: Key Personnel – Business & Financial Heads
Key Personnel – Business & Financial Heads Mr. Chethan Shenoy Mr. Rajesh Bhutra Mr. Niranjan Babu Ramayanam Director & Head – Product & Research CFO Head – Operations Mr. Bharath Rathore Mr. Arjun Guha Mr. Manish Srivastava Executive Director & Unit Head, Executive Director & Unit Head, Mumbai Direc
Slide 28: Strong Growth Momentum… To Continue
Strong Growth Momentum… To Continue
Slide 29: Consolidated Business Summary
Consolidated Business Summary Particulars (Rs. Crs.) Q4 FY22 Q3 FY22 Q-o-Q Q4 FY21 Y-o-Y FY22 FY21 Y-o-Y MF – Equity & debt 19,434 18,899 2.8% 14,559 33.5% 19,434 14,559 33.5% Other Securities 9,591 9,488 1.1% 9,408 2.0% 9,591 9,408 2.0% Others 3,881 3,783 2.6% 2,703 43.6% 3,881 2,703 43.6% AUM 32,9
Slide 30: Historical Trends
Historical Trends AUM (Rs. Crs.) Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) EPS (Rs.) 32,906 426 127 30.49 224 15,264 46 11.07 Mar-18 Mar-22 FY18 FY22 FY18 FY22 FY18 FY22 21% 17% 29% 29% Growth is on CAGR basis All financial numbers are on Consolidated Basis 29
Slide 31: Historical Financials
Historical Financials Particulars (Rs. Crs.) FY22 FY21 FY20 FY19 FY18 MF – Equity & debt 19,434 14,559 11,068 12,862 11,050 Other securities 9,591 9,408 5,797 3,966 2,640 Others 3,881 2,703 1,490 1,565 1,575 AUM 32,906 26,670 18,355 18,393 15,264 Particulars (Rs. Crs.) FY22 FY21 FY20 FY19 FY18 MF –
Slide 32: Historical Balance Sheet
Historical Balance Sheet Assets (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Equity & Liabilities (Rs. Crs) Mar-22 Mar-21 Mar-20 Mar-19 Non - Current Assets 279.0 245.6 258.5 118.4 Total Equity 355.4 253.2 185.5 123.9 Property Plant & Equipments 80.8 7.2 8.9 7.5 Share Capital 20.8 13.8 13.5 13.5 CWIP - 69.
Slide 33: Thank You!
THANK YOU ! Company: Anand Rathi Wealth Limited Investor Relation Advisors: Strategic Growth Advisors Pvt. Ltd. CIN: L67120MH1995PLC086696 CIN: U74140MH2010PTC204285 Mr. Rajesh Bhutra, CFO / Vishal Sanghavi – EVP Mr. Deven Dhruva / Mr. Abhishek Shah Finance deven.dhruva@sgapl.net / abhishek.shah@sga