Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — Q3 FY24 Earnings Presentation
38 slides from Anand Rathi Wealth's earnings presentation, Jan 12, 2024
Slide 1: Submission of Investor Presentation to exchanges
ANANDRATHI Private Afealth . uncomplicated Ref No: 81 /2023-24 Dated: January 12, 2024 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 Comp
Slide 2: Investor Presentation Quarter & Nine Months Ended 31st December 2023
Investor Presentation Qu a r te r & N i n e M o n th s E n d e d 3 1 st De c e 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 s
Slide 4: Consolidated Highlights
ANANDRATHI Consolidated Highlights
Slide 5: Strong Q3 FY24 Financial Performance
STRONG Q3 FY24 FINANCIAL PERFORMANCE Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) AUM (Rs. Crs.) & PAT Margins 34% YoY 43% YoY 34% YoY 43% YoY 30.8% 31.0% 187 55,057 72 58 140 38,517 43 50 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Dec-22 Dec-23 4 Data Driven Decision
Slide 6: Strong 9M FY24 Financial Performance
STRONG 9M FY24 FINANCIAL PERFORMANCE Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) AUM (Rs. Crs.) & PAT Margins 35% YoY 32% YoY 34% YoY 43% YoY 30.6% 30.5% 555 55,057 186 169 412 38,517 141 126 9MFY23 9MFY24 9MFY23 9MFY24 9MFY23 9MFY24 Dec-22 Dec-23 5 Data Driven Deci
Slide 7: Performance Metrics
PERFORMANCE METRICS Equity MF Net Flows Product Wise AUM Mix (Rs. Net Flows (Rs. Crs.) SIP Flows (Rs. Crs.) (Rs. Crs.) Crs.) & Avg. AUM Yield* +124% +388% +41% 2,907 1,948 111 1.5% 1.5% 79 12% 15% 1,298 29% 24% 399 11% 9% Q3FY23 Q3FY24 Q3FY23 Q3FY24 Q3FY23 Q3FY24 52% +41% +85% +35% 48% 5,411 3,854 2
Slide 8: Private Wealth Business
ANANDRATHI Private Wealth. uncomplicated Private Wealth Business
Slide 9: Focused on More Rewarding HNI Segment
FOCUSED ON MORE REWARDING HNI SEGMENT Share in Current AUM (%)* 22.4% (PY 16.6%) 51.9% • These were mostly HNIs when they were on-boarded (PY 51.8%) and have subsequently elevated as UHNIs over a period 25.7% (PY 31.6%) • Slower and difficult to build, but far more sustainable with long term profita
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 principles, Consistent client outcomes risk and portfolio strategy Provide comparative investment options Ability to build and train RM pool internally
Slide 11: Key Operational Highlights for 9M FY24
KEY OPERATIONAL HIGHLIGHTS FOR 9M FY24 Relationship Active Client AUM (Rs. Crs.) AUM Per RM Clients Per RM Managers (Nos.) Families (Nos.) 43% +16% +18% 53,566 322 9,641 166 30 30 277 8,202 135 37,500 Dec-22 Dec-23 Dec-22 Dec-23 Dec-22 Dec-23 Dec-22 Dec-23 Dec-22 Dec-23 10 Data Driven Decision-Makin
Slide 12: Net Flows Industry vs ARWL
NET FLOWS INDUSTRY VS ARWL Industry ARWL Net Inflows of Net Inflows - SIP Equity MF Net Net Inflows - SIP Period Growth / Equity SIP Contribution SIP Contribution Contribution Inflows Contribution Oriented Schemes FY:2020-21 (25,966) 96,080 (1,22,046) 125 170 (45) FY:2021-22 1,64,405 1,24,566 39,839
Slide 13: Advantages of Client Vintage and Stickiness
ADVANTAGES OF CLIENT VINTAGE AND STICKINESS Client Vintage (Nos.) Client (AUM) Vintage Client Attrition (% of AUM lost) 8,202 9,641 0.29% 0.23% 21% 20% 39% 39% Q3FY23 Q3FY24 0.88% 79% 80% 0.71% 61% 61% Dec-22 Dec-23 Dec-22 Dec-23 9MFY23 9MFY24 0 to 3 Year > 3 Year 0 to 3 Year > 3 Year As on 31 st De
Slide 14: Increasing Share of Higher Vintage Relationship Managers
INCREASING SHARE OF HIGHER VINTAGE RELATIONSHIP MANAGERS Vintage Wise Relationship 277 322 Managers (Nos.) 155 125 60 38 45 RMs added in 92 129 last 12 months Dec-22 Dec-23 > 5 Year 3 to 5 Year <3 Year Regret RM Attrition* 1.10% One of the lowest regret RM attrition in the industry. 0.65% For Q3 FY2
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… Ana nd R a t h i We a lth : We l l, po i se d t o g ro w e x po nentially
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) (Equity AUM to GDP Ratio - India V/S Other Economies) 64% 39.4 44% 21.4 30% 27% 10% 5% 6% Mar-18 Mar-23 India Brazil Japan Germany UK USA World India h
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: Financial Assets of Indian Households
FINANCIAL ASSETS OF INDIAN HOUSEHOLDS Financial Mutual Govt Small PF and Currency Deposits Equity Insurance Assets Total Funds Securities Savings Pension Rs. Lakh Crore 2012 128.5 11.5 44.8 4.4 8.8 1.2 21.7 17.9 18.2 2023 370.8 31.2 129.3 23.6 23.7 2.0 42.6 60.4 58.0 % Share 2012 100.0 8.9 34.9 3.4
Slide 20: Digital Wealth - New Age Business
Digital Wealth - New Age Business
Slide 21: 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 22: 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.) 1,491 Unique Approach to Wealth Solutions 1,017 Dec-22 Dec-23 Delivers service Seeks to build a Attempts to build Clients (Nos.) throug
Slide 23: Omni Financial Advisor (OFA) – New Age Business
Omni Financial Advisor (OFA) – New Age Business
Slide 24: 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 25: 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.) 5,669 5,932 Client Business engagement dashboard Goal planning Dec-22 Dec
Slide 26: Leadership Team
ANANDRATHI Private Wealth. uncomplicated Leadership Team
Slide 27: 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 28: 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 29: Key Personnel – Business & Financial Heads
KEY PERSONNEL – BUSINESS & FINANCIAL HEADS Department Mr Chethan Shenoy Mr Chirag Mr Rajesh Mr Niranjan Babu Mrs. Tejal Shah Heads Executive Director and Muni Bhutara Ramayanam Chief Human Head – Product and Associates Director & Chief Financial Chief Operating Resources Officer Research Head - Busi
Slide 30: Strong Growth Momentum…To Continue
Strong Growth Momentum…To Continue
Slide 31: Outperforming the Guidance
OUTPERFORMING THE GUIDANCE Revised Guidance given Actual for 9M FY24 Particulars for FY24 % Achieved (Rs. Crs.) (Rs. Crs) Revenue 720 555 77% Profit After Tax 220 169 77% Asset Under Management (AUM) 51,000 55,057 - Note: All the above numbers are on consolidated basis Data Driven Decision-Making fo
Slide 32: Consistent Quarterly Performance
CONSISTENT QUARTERLY PERFORMANCE ARWL (Standalone) Sr. No. Period PAT (Rs. Crs) Growth (Y-o-Y) 1 Q3FY22 32.0 144.2% 2 Q4FY22 34.6 239.0% 3 Q1FY23 39.7 33.6% 4 Q2FY23 43.0 41.1% 5 Q3FY23 43.2 34.9% 6 Q4FY23 42.7 23.4% 7 Q1FY24 53.2 34.0% 8 Q1FY24 57.7 34.3% 9 Q3FY24 58.0 34.3% Mean 33.7% Based on las
Slide 33: Consolidated Profit & Loss Summary
CONSOLIDATED PROFIT & LOSS SUMMARY Particulars (Rs. Crs.) Q3 FY24 Q3 FY23 Y-o-Y Q2 FY24 Q-o-Q 9M FY24 9M FY23 Y-o-Y MF – Equity & Debt 71.5 50.0 62.5 186.2 141.1 Distribution of Financial Products 109.5 86.8 118.7 349.7 260.9 IT Enabled Services 1.4 1.2 1.4 4.1 3.6 Others 4.8 2.2 6.5 14.7 6.2 Total
Slide 34: 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 35: 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 36: 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 37: 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 38: 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