Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — H1 FY2024 Earnings Presentation
36 slides from Anand Rathi Wealth's earnings presentation, Oct 12, 2023
Slide 1: Submission of Investor Presentation cover letter
Ref No: 63/2023-24 Dated: October 12, 2023 The Manager, The Manager, Listing Department, Listing Department, The National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, 5th Floor, Plot C/ 1, G Block, Phiroze Jeejeebhoy Tower, Sandra - Kurla Complex, Sandra (E), Dalal Street, Mumbai - 400
Slide 2: Investor Presentation Quarter & Half Year Ended 30th September 2023
Investor Presentation Qu a r te r & H a l f Ye a r E n d e d 3 0 th S e pte mbe r 2 0 2 3 Data Driven Decision-Making for Wealth Creation.
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Anand Rathi Wealth Li mited (the “Company”) , have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any
Slide 4: Strong H1 FY24 Financial Performance (Consolidated)
STRONG H1 FY24 FINANCIAL PERFORMANCE (Consolidated) Profit Before Tax (Rs. Crs.) Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) AUM (Rs. Crs.) & PBT Margins & PAT Margins 35% YoY 35% YoY 34% YoY 34% YoY 40.7% 40.4% 30.4% 30.2% 368 47,957 149 111 272 35,842 110 83 H1FY23 H1FY24 H1FY23 H1FY24 H1
Slide 5: Private Wealth Business
ANANDRATHI Private Wealth. uncomplicated Private Wealth Business
Slide 6: One of the Leading Private Wealth Solutions Company in India
ONE OF THE LEADING PRIVATE WEALTH SOLUTIONS COMPANY IN INDIA Who we are… Presence across India One of the leading non -bank sponsored B -C wealth solutions firms in India & have been ranked amongst the top three non -bank sponsored mutual fund distributors in India by gross commission Started in 200
Slide 7: Focused on More Rewarding HNI Segment
FOCUSED ON MORE REWARDING HNI SEGMENT Share in Current AUM (%)* These were mostly HNIs when they were on-boarded and have subsequently elevated as UHNIs over a period of time Rs. 50 Crores and 19.0% above (PY 16.8%) Rs. 5 Crores – Rs. 50 Crores 53.0% (PY 50.7%) Slower and difficult to build, but far
Slide 8: 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 principles, Consistent client outcomes risk and portfolio strategy Provide comparative investment options Ability to build and train RM pool internally
Slide 9: Key Highlights for H1 FY24 – Private Wealth Business
KEY HIGHLIGHTS FOR H1 FY24 – 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 41.8% 41.5% 31.3% 31.0% +34% +25% 352 109 +33% +33% 262 88 146 109 110 82 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1F
Slide 10: Key Highlights for Q2 FY24 – Private Wealth Business
KEY HIGHLIGHTS FOR Q2 FY24 – 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 42.8% 32.0% 42.1% 31.2% +6% +20% 30.7% 40.9% 181 60 171 +9% +8% 50 45 76 57 133 70 52 57 43 Q2FY23 Q1FY24 Q2FY24
Slide 11: Private Wealth Performance Metrics
PRIVATE WEALTH PERFORMANCE METRICS Product Wise AUM Mix (Rs. Crs.) & Net Flows (Rs. Crs.) AUM per RM Avg. AUM Yield* -1% 1.62% 2,474 +10% 2,447 1.55% 1,226 150 1,119 129 12% 13% 29% 27% Q2FY23 Q2FY24 H1FY23 H1FY24 Sep-22 Sep-23 11% 10% Equity MF Net Flows Market Share* (%) (Rs. Crs.) Clients per RM
Slide 12: Advantages of Client Vintage and Stickiness
ADVANTAGES OF CLIENT VINTAGE AND STICKINESS Client Vintage (Nos.) Client (AUM) Vintage Client Attrition (% of AUM lost ) 7,928 9,212 0.36% 21% 21% 0.21% 41% 38% Q2FY23 Q2FY24 0.64% 79% 79% 59% 62% 0.41% Sep-22 Sep-23 Sep-22 Sep-23 H1FY23 H1FY24 0 to 3 Year > 3 Year 0 to 3 Year > 3 Year As on 30 th S
Slide 13: Increasing Share of Higher Vintage Relationship Managers
INCREASING SHARE OF HIGHER VINTAGE RELATIONSHIP MANAGERS Vintage Wise Relationship 271 311 Managers (Nos.) 148 122 59 44 40 RMs added in 90 119 last 12 months Sep-22 Sep-23 > 5 Year 3 to 5 Year <3 Year Regret RM Attrition* 1.11% One of the lowest regret RM 0.74% attrition in the industry. 0.66% For
Slide 14: Historic Quarterly Performance – Private Wealth Business
HISTORIC QUARTERLY PERFORMANCE – PRIVATE WEALTH BUSINESS Profit After Tax (Rs. Crs.) +152% +335% +34% +41% +35% +27% +33% +33% 56.6 52.4 42.6 42.9 43.2 39.5 34.0 31.9 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Consistent Y-o-Y Growth 13 Data Driven Decision-Making for Wealth Creation
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 a n d R a t h i W e a lth : W e l l, p o i s e d t o g r o w e x p o n en tially
Slide 17: Increasing Penetration of Mutual Fund Market in India
INCREASING PENETRATION OF MUTUAL FUND MARKET IN INDIA Assets managed by the Indian mutual fund industry Penetration of MF Industry (Rs. Lakh Crores) (AUM to GDP Ratio - India V/S Other Economies) 140% 39.4 84% 21.4 63% 16% Mar-18 Mar-23 India United States Brazil Global Average India has a huge scop
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 Indian Market Cap Data Equity Mutual Fund (Rs. Lakh Crores) (Rs. Lakh Crores) There is massive Interest in potential to increase Equities has gone the share of
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 Algo driven real-time portfolio restruct
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.) 1,387 Unique Approach to Wealth Solutions 1,167 949 Sep-22 Jun-23 Sep-23 Delivers service Seeks to build a Attempts to build Clients (N
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 The Anand Rathi OFA Our solution of MFD’s Advantages ✓ Lack of Infrastructure & ✓ Mobile –led Tech ✓ Superior Technology Tech with small MFDs 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 5,688 5,880 Client Business engagement dashboard Goal planning Sep-
Slide 25: Leadership Team
ANANDRATHI Private Wealth. uncomplicated Leadership Team
Slide 26: Board of Directors
BOARD OF DIRECTORS Mr. Anand Rathi Mr. Pradeep Kumar Gupta Mr. Rakesh Rawal Chairman & Non -Executive Executive Director & CEO Non-Executive Director Director Mr. Mohan Tanksale Mr. Ramesh Chandak Mr. K. G. Somani Mrs. Sudha Navandar Independent Director Independent Director Independent Director Ind
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 • Post Graduate Diploma in Management – • Rank holder Chartered Accountant and from the Jamnalal Ba
Slide 28: Key Personnel – Business & Financial Heads
KEY PERSONNEL – BUSINESS & FINANCIAL HEADS Department Mr Chethan Shenoy Mr Chirag Mr Rajesh Mr Niranjan Babu Mr Agraj Heads Executive Director and Muni Bhutara Ramayanam Gupta Head – Product and Associates Director & Chief Financial Chief Operating Chief Human Research Head - Business Process Office
Slide 29: Strong Growth Momentum…To Continue
Strong Growth Momentum…To Continue
Slide 30: Outperforming the Guidance
OUTPERFORMING THE GUIDANCE Guidance given for Actual for H1 FY24 Particulars FY24 % Achieved Revised Guidance (Rs. Crs.) (Rs. Crs) Revenue 661 368 56% 720 Profit After Tax 205 111 54% 220 Asset Under Management 47,000 47,957 - 51,000 (AUM) Note: All the above numbers are on consolidated basis Data D
Slide 31: Consolidated Profit & Loss Summary
CONSOLIDATED PROFIT & LOSS SUMMARY Particulars (Rs. Crs.) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q H1 FY24 H1FY23 Y-o-Y MF – Equity & Debt 62.5 46.9 52.2 114.7 91.2 Distribution of Financial Products 118.7 88.0 121.5 240.2 174.2 IT Enabled Services 1.4 1.2 1.3 2.7 2.4 Others 6.5 2.0 3.4 9.9 4.0 Total Rev
Slide 32: Consolidated Balance Sheet as on 30th September
CONSOLIDATED BALANCE SHEET AS ON 30 th SEPTEMBER Assets (Rs. Crs) Sep-23 Mar-23 Equity & Liabilities (Rs. Crs) Sep-23 Mar-23 Non - Current Assets Total Equity Property Plant & Equipments 92.3 92.5 Share Capital 20.9 20.8 CWIP - - Other Equity 532.2 447.4 Goodwill 2.9 2.9 Non-Controlling Interest 12.
Slide 33: Historical Trends
HISTORICAL TRENDS Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) EPS (Rs.) AUM (Rs. Crs.) 558 169 40.46 38,993 224 15,264 46 11.07 FY18 FY23 FY18 FY23 FY18 FY23 Mar-18 Mar-23 Rs. 558 crores Rs. 169 crores Rs. 40.46 per share Rs. 38,993 crores 20% CAGR 30% CAGR 30% CAGR 21% CAGR All fin an cial n u m
Slide 34: Historical Financials
HISTORICAL FINANCIALS Particulars (Rs. Crs.) FY19 FY20 FY21 FY22 FY23 MF – Equity & Debt 104.0 99.6 90.2 154.0 189.9 Distribution of Financial Products 169.0 227.7 170.6 258.8 353.9 IT Enabled Services 3.6 4.6 4.5 4.8 4.9 Others 7.5 4.6 13.9 7.7 9.7 Total Revenue 284.1 336.4 279.2 425.2 558.3 Employ
Slide 35: Historical Balance Sheet
HISTORICAL BALANCE SHEET Assets (Rs. Crs) Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Equity & Liabilities (Rs. Crs) Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Non - Current Assets Total Equity Property Plant & Equipments 7.5 8.9 7.2 80.8 92.5 Share Capital 13.5 13.5 13.8 20.8 20.8 CWIP - 65.4 69.0 - - Other Equity
Slide 36: 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