Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — Q2 FY25 Earnings Presentation
42 slides from Anand Rathi Wealth's earnings presentation, Oct 10, 2024
Slide 1: Exchange submission cover letter
ANANDRATHI ~al , . , "omplicate Ref No:67/2024-25 Dated: 10th October, 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, Bandra - Kurla Complex, Band
Slide 2: Investor Presentation Q2 & H1 FY25
ANANDRATHI Private Wealth. uncomplicated - - ~· - - - .=::::::==:! , ....., . ~ ©.,, INVESTOR PRESENTATION Q u a r t e r & H a l f Y e a r l y E n d e d 3 0 th S e p t e m b e r 2 0 2 4
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: Index
INDEX 1 5 Consolidated highlights Strong growth momentum to continue …4-10 …31-40 2 Private wealth business …11-23 3 Future unlocking of India’s wealth story …24-27 4 New businesses …28-30 3 Holistic Wealth Solutions CREATION. PROTECTION.TRANSMISSION.
Slide 5: Consolidated Highlights
ANANDRATHI Ith. uncomplicated nsolidated ghlights
Slide 6: Quick glance: Consolidated performance
Quick glance: Consolidated performance (INR Crs.) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Total Revenue 178.4 189.1 187.3 197.2 245.4 249.6 Total Revenue y/y % 33.6 36.9 33.6 34.2 37.5 32.0 Revenue from Operations 175.0 182.6 182.4 184.3 237.6 242.5 Revenue from Operations y/y % 33.0 34.2 32.2 28.
Slide 7: Quick glance: Key metrics
Quick glance: Key metrices Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 AUM (Rs. Crs.) 43,413 47,957 55,057 59,351 69,018 75,084 y/y % 31.7 33.8 42.9 52.2 59.0 56.6 Active Client Families 8,747 9,212 9,641 9,911 10,382 10,977 y/y % 17.0 16.2 17.5 18.7 18.7 19.2 Client Attrition (% of AUM lost) 0.2 0.2
Slide 8: Strong Q2 FY25 Financial Performance
STRONG Q2 FY25 FINANCIAL PERFORMANCE Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) AUM (Rs. Crs.) & PAT Margins 32% Y/Y 69% Y/Y 32% Y/Y 57% Y/Y 75,084 30.5% 30.6% 106 250 76 189 47,957 58 62 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Sep-23 Sep-24 The Board of Director
Slide 9: Strong H1 FY25 Financial Performance
STRONG H1 FY25 FINANCIAL PERFORMANCE Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) Return On Equity (ROE)* & PAT Margins 35% Y/Y 70% Y/Y 35% Y/Y 533 bps 30.2% 30.2% 150 44.4% 495 195 111 368 39.1% 115 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 *Annualised
Slide 10: Performance Metrics for Q2 & H1 FY25
PERFORMANCE METRICS FOR Q2 & H1 FY25 Equity MF net inflows Product wise AUM mix Net inflows (Rs. Crs.) SIP flows (Rs. Crs.) (Rs. Crs.) 83% -33% 75% 47,957 75,084 2,336 167 1,533 14% 14% 1,274 1,025 96 26% 25% 6% 10% Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 128% 64% 69% 5,700 310 50% 55% 3,116 183 1
Slide 11: Equity Net Inflows: Industry vs ARWL
EQUITY NET INFLOWS : INDUSTRY VS ARWL Industry (Rs. Crs.) ARWL (Rs. Crs.) Share in Industry Net inflows of For SIP Net inflows - Equity MF SIP Net inflows - Equity MF Net inflows - growth / equity Period purchases SIP purchases net inflows purchases SIP purchases net inflows SIP purchases oriented s
Slide 12: Private Wealth Business
ANANDRATHI Ith. uncomplicated vate Wealth siness O} N >. i j (t aly Y 4 S
Slide 13: Focused on More Rewarding HNI Segment – Share in AUM
FOCUSED ON MORE REWARDING HNI SEGMENT – SHARE IN AUM 24.7% These were mostly HNIs when they were on-boarded and have subsequently elevated as UHNIs over a period (PY 19.0%) 53.8% Target Segment – slower and difficult to build but more sustainable and scalable (PY 53.0%) 21.5% Clients yet to allocate
Slide 14: Key Operational Highlights for Q2 FY25
KEY OPERATIONAL HIGHLIGHTS FOR Q2 FY25 Relationship Active Client AUM Per RM Clients Per RM AUM (Rs. Crs.) Managers (Nos.) Families (Nos.) (Rs. Crs.) (Nos.) 374 73,257 10,977 311 196 30 29 9,212 150 46,571 Sep-23 Sep-24 Sep-23 Sep-24 Sep-23 Sep-24 Sep-23 Sep-24 Sep-23 Sep-24 13 Holistic Wealth Solut
Slide 15: Advantages of Client Vintage and Stickiness
ADVANTAGES OF CLIENT VINTAGE AND STICKINESS Client Vintage (Nos.) Client (AUM) Vintage Client Attrition (% of AUM lost) 0.21% 9,212 10,977 0.18% 21% 21% 38% 41% Q2FY24 Q2FY25 0.41% 79% 79% 0.28% 62% 59% Sep-23 Sep-24 Sep-23 Sep-24 H1FY24 H1FY25 > 3 Year 0 to 3 Year > 3 year 0 to 3 year 14 Holistic W
Slide 16: Increasing Share of Higher Vintage Relationship Managers
INCREASING SHARE OF HIGHER VINTAGE RELATIONSHIP MANAGERS Vintage wise Relationship Managers (Nos.) Regret RM Attrition* 311 374 0.66% 175 148 39 44 0.00% 0.00% 0.00% 160 Q2FY24 Q2FY25 H1FY24 H1FY25 119 Sep-23 Sep-24 <3 Year 3 to 5 year >5 year One of the lowest regret RM attrition in the industry F
Slide 17: A Process Driven; Data Backed Approach
A PROCESS DRIVEN; DATA BACKED APPROACH As a leading wealth solutions provider, ARWL prioritises delivering financial success to our clients. Our team of over 137 research and specialist members work tirelessly, dedicating over 1,800 workforce hours annually, to refine our processes and offer uncompl
Slide 18: Sources of Growth
SOURCES OF GROWTH Wallet share New RMs Greater asset share Addition of new from the existing relationship managers - client families addition of new cities 1 2 3 4 New clients Organic Addition of new Return on investment client families gets added to AUM 17 Holistic Wealth Solutions CREATION. PROTEC
Slide 19: Geographical Presence
GEOGRAPHICAL PRESENCE Our- Company !has offoces in 17 major- I ndiian cities. co nstid eredtol::JE l-tl N hotspotsa:nd ai r-epr es:ent.ative office in Dubai_ t.f. b ~ ~ b ~- t. ' ,i;.:;) c:,. 6 I ~ ::)!!I N e lh i =6 ~ e rab a ~ a 6 o id a, u n: ;y,,, <;.!,;I C :m d j~l!I 6 .Jod hpur t ~ ,. c o- b e
Slide 20: Board of Directors
BOARD OF DIRECTORS Mr. Anand Rathi Mr. Pradeep Kumar Gupta Mr. Rakesh Rawal Chairman & Non-Executive Non-Executive Director Executive Director & CEO Director Mr. Mohan Tanksale Mr. Ramesh Chandak Mr. K. G. Somani Mrs. Sudha Navandar Independent Director Independent Director Independent Director Inde
Slide 21: 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 Bajaj In
Slide 22: Key Personnel – Business Heads
KEY PERSONNEL – BUSINESS HEADS Mr. Chethan Shenoy Mr. Chirag Muni Mr. Rajesh Bhutara Head – Product and Head – Business Chief Financial Research Process Officer (CFO) Mr. Niranjan Babu Mr. Sushil Goswami Ms. Tejal Shah Ramayanam Chief Marketing Chief Human Resource Chief Operating Officer Officer Of
Slide 23: Key Personnel – Unit Heads
KEY PERSONNEL – UNIT HEADS Mr. Arjun Guha Mr. Amitabh Lara Mr. Bharath Rathore Mumbai Mumbai Bengaluru Mr. Suraj Sinha Ms. Protima Dhawan Mr. Adil Chacko Bengaluru Hyderabad Delhi Mr. Manish Srivastava Mr. Swapan Chakraborty Mr. Subhendu Harichandan Delhi Pune Pune 22 Holistic Wealth Solutions CREAT
Slide 24: Key Personnel – Unit Heads
KEY PERSONNEL – UNIT HEADS Mr. Raj Vijeta Sharma Mr. Ashish Bhandia Mr. Ranjan Sarkar Dubai Kolkata Kolkata Mr. Krishanu Chaudhary Mr. Mukesh Kumawat Mr. Farooq Nabi Chennai Gurugram Noida Mr. Harpreet Punj Mr. Sudhir Hiran Chandigarh Rajasthan 23 Holistic Wealth Solutions CREATION. PROTECTION.TRANS
Slide 25: Future Unlocking of India's Wealth Story
Future Unlocking of India’s Wealth Story
Slide 26: 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 (Equity AUM to GDP Ratio (Rs. Lakh Crores) - India V/S Other Economies) 72.1% 67.1 49.0% 30.9% 30.3% 23.8 10.1% 7.3% 6.5% Mar-19 Sep-24 India Brazil Japan Germany UK USA
Slide 27: 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 Crs.) (Rs. Lakh Crs.) There is massive Interest in potential to equities has increase the share gone up as i
Slide 28: Financial Assets of Indian Households
FINANCIAL ASSETS OF INDIAN HOUSEHOLDS Total Equity Mutual Govt Small PF and financial Currency Deposits Equity mutual funds - Insurance securities savings pension assets funds others Rs. Lakh Crs. FY14 143.0 12.5 55.4 5.7 1.8 2.2 1.4 22.9 21.1 20.1 FY23 370.8 31.2 129.3 23.6 17.3 6.4 2.0 42.6 60.4 5
Slide 29: New Businesses
ANANDRATHI Private Wealth. uncomplicated New Businesses
Slide 30: 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.) Clients (Nos.) 1,826 5,454 1,387 4,475 Sep-23 Sep-24 Sep-23 Sep-24 29 Holistic Wealth Solutions CREATION. PROTECTION.TRANSMISSION.
Slide 31: 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.) Platform Assets (Rs. Crs.) Platform Clients (Nos. lakhs) 21 6,188 155,213
Slide 32: Strong Growth Momentum to Continue
Strong Growth Momentum to Continue
Slide 33: Consistent & Market Agnostic Performance
CONSISTENT & MARKET AGNOSTIC PERFORMANCE ARWL (Consolidated) Sr. No. Period Nifty Performance PAT (Rs. Crs) Growth (Y/Y %) 1 Q3FY22 32.00 144.2% -1.5% 2 Q4FY22 34.60 239.0% 0.6% 3 Q1FY23 39.71 33.6% -9.6% 4 Q2FY23 42.95 41.1% 8.3% 5 Q3FY23 43.23 34.9% 5.9% 6 Q4FY23 42.71 23.4% -4.1% 7 Q1FY24 53.23 3
Slide 34: Outperforming the Guidance
OUTPERFORMING THE GUIDANCE Guidance given Actuals for H1 Revised Achieved % of Particulars for FY25 FY25 Guidance guidance (Rs. Crs.) (Rs. Crs.) (Rs. Crs.) Revenue 910 495 54% 980 Profit after tax 280 150 53% 295 Asset under management (AUM) 72,000 75,084 80,000 Note: All the above numbers are on co
Slide 35: Consolidated Profit & Loss Summary
CONSOLIDATED PROFIT & LOSS SUMMARY Particulars (Rs. Crs.) Q2 FY24 Q2 FY25 Y/Y % H1FY24 H1FY25 Y/Y % MF – Equity & Debt 62.5 105.7 114.7 194.7 Distribution of financial products 118.7 135.2 240.2 282.3 IT enabled services 1.4 1.5 2.7 3.1 Others 6.5 7.2 9.9 15.0 Total revenue 189.1 249.6 32% 367.5 495
Slide 36: Consolidated Balance Sheet as on 30th September
CONSOLIDATED BALANCE SHEET AS ON 30th SEPTEMBER Assets (Rs. Crs) Sep-24 Mar-24 Equity & Liabilities (Rs. Crs) Sep-24 Mar-24 Non - Current Assets Total Equity Property Plant & Equipments 90.9 90.5 Share capital 20.8 20.9 CWIP 1.4 0.8 Other equity 532.9 627.9 Goodwill 2.9 2.9 Non-controlling interest
Slide 37: Historical Trends
HISTORICAL TRENDS Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) EPS (Rs.) AUM (Rs. Crs.) CAGR - 22% CAGR - 31% CAGR - 30% CAGR - 26% 752 226 54.10 59,351 284 59 14.64 18,393 FY19 FY24 FY19 FY24 FY19 FY24 FY19 FY24 All financial numbers are on Consolidated basis 36 Holistic Wealth Solutions CREATION
Slide 38: Historical Financials
HISTORICAL FINANCIALS Particulars (Rs. Crs.) FY20 FY21 FY22 FY23 FY24 MF – Equity & Debt 99.6 90.2 154.0 189.9 266.6 Distribution of financial products 227.7 170.6 258.8 353.9 452.1 IT enabled services 4.6 4.5 4.8 4.9 5.6 Others 4.6 13.9 7.7 10.3 27.6 Total revenue 336.4 279.2 425.2 558.9 752.0 Empl
Slide 39: Historical Balance Sheet
HISTORICAL BALANCE SHEET Assets (Rs. Crs) Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Equity & Liabilities (Rs. Crs) Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Non - Current Assets Total Equity Property plant & equipments 8.9 7.2 80.8 92.5 90.5 Share capital 13.5 13.8 20.8 20.8 20.9 CWIP 65.4 69.0 - 0.0 0.8 Other eq
Slide 40: ARWL Journey: 2002-18
ARWL JOURNEY: 2002-18 2002 2008 Certified as an AMFI- Established an office in registered Mutual Fund Delhi, launched Distributor. operations in Dubai. 2011 2015 Started Operations in Crossed the milestone of Chennai. Rs.5,000 Crs AUM. Set up an office in Pune. 2017 2018 Acquired two companies Cross
Slide 41: ARWL Journey: 2019-24
ARWL JOURNEY: 2019-24 2019 2020 Crossed the milestone of Rs.20,000 Crores of AUM. Expanded operations to Commenced operations in Chandigarh. Noida and Jodhpur. 2021 2022 Expanded presence into 4 Listed publicly on the new cities: Ahmedabad, NSE and BSE. Vishakhapatnam, Coimbatore and Nagpur. 2023 20
Slide 42: Anand Rathi Wealth Limited contact details
Anand Rathi Wealth Limited CIN: L67120MH1995PLC086696 Mr. Rajesh Bhutara, CFO Mr. Vishal Sanghavi, Head IR rajeshbhutra@rathi.com vishalsanghavi@rathi.com Tel: 022 6281 7003 +91 98920 52454