Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — Q3 FY22 Earnings Presentation
31 slides from Anand Rathi Wealth's earnings presentation, Jan 7, 2022
Slide 1: Exchange filing cover letter
ANANDRATHI Private Wealth. uncomplicated Ref_No: 09/2021-22 Dated: January 07, 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 Ba
Slide 2: Anand Rathi Wealth Limited Investor Presentation Q3 FY22
Anand Rathi Wealth Limited Investor Presentation Q3 FY22
Slide 3: Highlights
Highlights • Consolidated total Revenue for Q3 FY22 was Rs. 108.66 Cr, recording a healthy growth of 55% YoY. Revenue for 9M FY22 was at Rs. 310.88 Cr, recorded growth of 54% YoY • Consolidated PAT for Q3 FY22 was Rs.32.04 Cr, up by 144% YoY and for 9MFY22 was at Rs. 92.20 Cr, higher by 168% YoY. •
Slide 4: Comparative Consolidated Business Summary
Comparative Consolidated Business Summary Particulars (INR Cr) Q2FY22 Q3FY22 QoQ Q3FY21 YoY 9MFY21 9MFY22 YoY AUM (INR Cr) 30,989 32,171 3.8% 25,119 28.1% 25,119 32,171 28.1% MF – Equity & debt 18,069 18,899 4.6% 13,643 38.5% 13,643 18,899 38.5% Other securities 9,469 9,488 0.2% 8,919 6.4% 8,919 9,4
Slide 5: Consolidated Performance Overview
Consolidated Performance Overview Strong growth in AUM Revenue Trends INR Cr INR Cr 32,171 26,670 336 311 284 279 18,393 18,355 224 15,264 FY18 FY19 FY20 FY21 9MFY22 FY18 FY19 FY20 FY21 9MFY22 PAT Trends Best-in-class ROE INR Cr 92 59% 55% 59 61 41% 46 45 37% 20% FY18 FY19 FY20 FY21 9MFY22 FY18 FY19
Slide 6: Private Wealth Vertical – Key Highlights
Private Wealth Vertical – Key Highlights
Slide 7: One of the leading private wealth practices in India
One of the leading private wealth practices in India Overview Presence across India AuM Growth We are one of the leading non-bank wealth solutions firms in 11 offices across all major Indian cities INR 31,348 Cr India and have been ranked amongst the top three non-bank INR 14,986 Cr + mutual fund
Slide 8: Provides wealth solutions to the more sustainable HNI segment
Provides wealth solutions to the more sustainable HNI segment Share in Current AuM* (%) These were mostly HNIs when they were on-boarded and have 16.4% subsequently elevated as UHNIs over a period of time 50.8% Slower and difficult to build, but far more sustainable with long term profitability 32.8
Slide 9: Offers end-to-end, process driven, standardized and well researched solution
Offers end-to-end, process driven, standardized and well researched solution... Standardized Solution Client goals Consistent client Discussion with clients on investment principles, outcomes risk and portfolio strategy Provide comparative investment options Ability to build and train RM pool intern
Slide 10: Private Wealth Performance Metrics
Private Wealth Performance Metrics AUM Split Revenue Split 26,058 31,348 INR Cr 254 295 102 INR Cr 10% 1% 1% 1% 12% 36% 30% 65% 63% 59% 17% 13% 36% 44% 34% 36% 40% FY21 9MFY22 FY21 9MFY22 Q3FY22 Equity MF Debt MF Other securities Others MF Other securities Others Yield Analysis Trail Income coverage
Slide 11: AUM Movement and Net Flows Analysis
AUM Movement and Net Flows Analysis AUM Bridge (9M FY22) 3,376 31,348 INR Cr 1,088 (279) 1,105 26,058 -1.07%* 12.95%* 20.30%* 4.18%* 4.24%* Op. AUM (Apr-21) Net Flow – new Net Flow – existing AUM loss due to MTM movement Cl. AUM (Dec-21) clients clients client attrition *as % of opening AUM Net Flow
Slide 12: Client Metrics
Client Metrics Net Client Addition Client Vintage (#) 6,109 6,910 48% 45% 988 801 52% 55% 249 FY21 9MFY22 FY21 9MFY22 Q3FY22 > 3 Year 0 to 3 Year Client Vintage (AUM) Client Attrition (% of AUM lost) 2.54% 28% 25% 72% 75% 1.07% FY21 9MFY22 > 3 Year 0 to 3 Year FY21 9MFY22 10
Slide 13: Relationship Manager (RM) Metrics
Relationship Manager (RM) Metrics Increasing share of higher vintage RMs Vintage wise AUM per RM 169 INR Cr 233 253 148 46 12 69 45 70 66 33 30 82 96 FY21 9MFY22 FY21 9MFY22 > 5 Year 3 to 5 Year 1 to 3 Year 0 to 1 Year > 3 Year 0 to 3 Year AMs promoted to RMs Regret RM Attrition Accolades 38 3.50% G
Slide 14: Growth Guidance – Private Wealth Business
Growth Guidance – Private Wealth Business INR Cr Target Target Particulars FY21 9M FY22 FY22 FY23 Net Flows 1,110 1,914 2,600 3,500 Revenue 262 295 400 490 Profit After tax 44 91 122 152 12
Slide 15: DW and OFA Vertical – Key Highlights
DW and OFA Vertical – Key Highlights
Slide 16: Anand Rathi Digital Wealth - Leveraging technology to cater to the mass affluent segment
Anand Rathi Digital Wealth - Leveraging technology to cater to the mass affluent segment through a phygital model Performance as of Innovative Product Key Highlights December 31, 2021 Core Revenue Model: Started in Sep-2016, DW is a fin-tech extension AuM of INR 805 Cr Commission on Mutual Fund (MF)
Slide 17: DW Vertical – Key Highlights
DW Vertical – Key Highlights AUM and Yield Trends No. of Client Engagement Partners (CEPs) INR Cr 1.25% 1.03% 823 319 612 294 FY21 9MFY22 FY21 9MFY22 AUM Yield No. of Clients 3,517 3,111 FY21 9MFY22 15
Slide 18: Harnessing the market opportunity
Harnessing the market opportunity Challenges faced by Customer Segment Our Solutions AR advantage Customers Poor Quality of advice and service due Closed architecture packaged solution – Leverage PWM model and experience Mass Affluent to inadequately skilled, low eliminating potential miss sell Exis
Slide 19: Investment Highlights
Investment Highlights Uncomplicated customer education, Strategy & reporting Fully variable Comprehensive and scalable packaged solution business model – select MFs + Other securities DWM – A holistic solution Algo driven real- WM Track time portfolio Record restructuring and rebalancing Access to p
Slide 20: Digital Wealth (DW) – Application Snapshots
Digital Wealth (DW) – Application Snapshots DWM App Partner app on iPads Mobile client app Partner CRM CEP Income Graph Dashboard Wealth Strategy Transact Content 18
Slide 21: Anand Rathi OFA - Leveraging technology to cater to the retail segment through a B2B2C model
Anand Rathi OFA - Leveraging technology to cater to the retail segment through a B2B2C model Key Information Key metrics as of Key Functionalities December 31, 2021 Subscription Revenue from IFAs – On Acquired a company providing financial planning 5,164 IFAs subscription, the IFAs receive access to
Slide 22: OFA Vertical – Business KPIs
OFA Vertical – Business KPIs No. of Independent Financial Advisors (IFAs) Platform Assets (Value) INR Cr 5,164 84,596 5,011 54,699 FY21 9MFY22 FY21 9MFY22 Platform Clients (# mn) 17 16 FY21 9MFY22 20
Slide 23: Provides a technology platform to the IFAs & their clients for reporting & transaction services
Provides a technology platform to the IFAs & their clients for reporting & transaction services Customer Segment Top 3 Problems OFA - Our Solutions AR advantage Certified MF & Insurance Agents / Lack of Infrastructure & Tech with small Mobile –led Tech Infrastructure Network vs sub-broker distributo
Slide 24: Omni Financial Advisor (OFA) – Application Snapshots
Omni Financial Advisor (OFA) – Application Snapshots OFA App Partner app Client app 22
Slide 25: Annexure
ANANDRATHI Private Wealth. uncomplicated
Slide 26: Market Potential
Market Potential 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 % of total assets to CAGR CAGR Other financial grow 2.3x from FY20 to grow from 57% in Equity linked assets FY25 262.9 assets FY20 to
Slide 27: Leadership & Key Resources
Leadership & Key Resources Mr. Rakesh Rawal Mr. Feroze Azeez CEO Dy. CEO Mr. Chethan Shenoy Mr. Rajesh Bhutra Mr. Niranjan Babu Ramayanam Director & Head – Product & Research CFO Head – Operations Mr. Arjun Guha Mr. Bharath Rathore Mr. Amitabh Lara Executive Director & Unit Head, Executive Director
Slide 28: Board of Directors
Board of Directors Anand Rathi Mohan Tanksale Independent Director Chairman & Non-Executive Director (Ex CMD – Central Bank of India) Ramesh Chandak Pradeep Gupta Independent Director (Ex MD - KEC International Ltd.) Non-Executive Director Kishan Gopal Somani Independent Director Amit Rathi (Ex-Pres
Slide 29: Awards and Accolades
Awards and Accolades Great Place to Work Customer Service Fastest Growing Amity Corporate (Small and Mid-Sized Excellence Award Wealth Management Excellence Award Organizations category) 2020 Organization 2019 2021 & 2020 2020 Great Place to Work World BFSI Congress World BFSI Congress Amity Institu
Slide 30: Disclaimer
Disclaimer This document is for the personal information of the authorised recipient(s) and does not construe to be an offer or solicitation of an offer to buy/sell any securities. It does not construe to be any investment, legal or taxation advice or recommendation in relation to holding, purchasin
Slide 31: Thank You
ANANDRATHI Thank You