Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — Q1 FY24 Earnings Presentation
33 slides from Anand Rathi Wealth's earnings presentation, Jul 12, 2023
Slide 1: Exchange submission letter for Investor Presentation
ANANDRATHI Ref No: 37 /2023-24 Dated: July 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, Bandra - Kurla Complex, Sandra {E), Dalal Street, Mumb
Slide 2: Investor Presentation Quarter Ended 30th June 2023
Great Place To Work® Certified OCT 2022 - OCT 2023 INDIA Private Wealth. uncomplicated Investor Presentation Qu a r te r E n d e d 3 0 th J u n e 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: Strong Q1 FY24 Financial Performance (Consolidated)
STRONG Q1 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 34% YoY 34% YoY 34% YoY 32% YoY 39.6% 39.7% 29.7% 29.8% 178 43,413 71 53 134 32,961 53 40 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q
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 18.1% above (PY 16.3%) Rs. 5 Crores – Rs. 50 Crores 52.1% (PY 50.4%) 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, • risk and portfolio strategy • Consistent client outcomes Provide comparative investment options • Ability to build and train RM pool inter
Slide 9: Key Highlights for Q1 FY24 – Private Wealth Business
KEY HIGHLIGHTS FOR Q1 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% 30.7% 30.7% 30.5% 40.7% 40.9% +17% +32% 171 50 47 141 42 129 - -CY +33% ♦ 70 - -CY+33% ♦ 52 53 59 39 43 Q1
Slide 10: Private Wealth Performance Metrics
PRIVATE WEALTH PERFORMANCE METRICS Product Wise AUM Mix (Rs. Crs.) & Net Flows (Rs. Crs.) AUM per RM Avg. AUM Yield* 1.67% 1.59% 137 119 12% 13% 1,355 1,221 30% 29% Jun-22 Jun-23 12% 11% Clients per RM 46% 47% Jun-22 Jun-23 Q1FY23 Q1FY24 28 28 •• Others Non-Principle Protected Structured Products (N
Slide 11: Advantages of Client Vintage and Stickiness
ADVANTAGES OF CLIENT VINTAGE AND STICKINESS Client Vintage (Nos.) Client (AUM) Vintage Client Attrition (% of AUM lost)* D7,477 D8,747 1.15% 23% 20% 42% 38% 0.83% 77% 80% 58% 62% Jun-22 Jun-23 Jun-22 Jun-23 Q1FY23 Q1FY24 • 0 to 3 Year • > 3 Year • 0 to 3 Year • > 3 Year *Annualized As on 30 th June
Slide 12: Increasing Share of Higher Vintage Relationship Managers
INCREASING SHARE OF HIGHER VINTAGE RELATIONSHIP MANAGERS Vintage Wise Relationship 308 271 Managers (Nos.) 144 120 37 RMs 45 54 increased in last 97 119 12 months Jun-22 Jun-23 • > 5 Year • 3 to 5 Year • <3 Year 0.67% Regret RM Attrition* 0.37% One of the lowest regret RM attrition in the industry Q
Slide 13: 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 14: India's Wealth Story to Unlock in Coming Years
ANANDRATHI India’s Wealth · - e Wealth. uncomplica ted Story to unlock in coming years… II II Ill 1111 0,J 01, ,I I 05 I II 111 OIi 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 15: 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% ------ ---------. I 39.4 +13% I I I I I 84% I I I 21.4 63% I I I I I I I I 16% I ----- I I I I -- I
Slide 16: 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 (Rs. Lakh Equity Mutual Fund (Rs. Lakh Crores) Crores) There is massive Interest in potential to Equities has increase the share +17.8% g
Slide 17: Digital Wealth - New Age Business
ANAN DRAT HI Private Wealth. uncomplicated " If A .. II Digital Wealth - " ) J ) ) ft New Age Business I n. n. I 0 ' .-,, 0 .. A . fl II A n I fl J J n o n I n ~ II 0
Slide 18: 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 19: 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.) 1,167 Unique Approach to Wealth Solutions 1,051 819 • • • I Jun-22 Mar-23 Jun-23 Delivers service Seeks to build a Attempts to build Cl
Slide 20: Omni Financial Advisor (OFA) – New Age Business
ANAN DRAT HI Private Wealth. uncomplicated " If A .. Omni Financial " II Advisor (OFA) – ) J ) ) I ft n. n. I New Age Business 0 ' .-,, 0 .. A . fl II A n I fl J J n o n I n ~ II 0
Slide 21: 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 22: 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.) 5,368 5,677 5,688 Client Business engagement dashboard Goal planning Jun-
Slide 23: Leadership Team
ANAN DRAT HI Private Wealth. uncomplicated Leadership Team
Slide 24: 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 25: 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 Jamna
Slide 26: Key Personnel – Business & Financial Heads
KEY PERSONNEL – BUSINESS & FINANCIAL HEADS Department Mr Chethan Mr Chirag Mr Rajesh Mr Niranjan Babu Mr Agraj Heads Shenoy Muni Bhutara Ramayanam Gupta Director and Head – Associates Director & Chief Financial Head Chief Human Product and Research Head - Business Process Officer Operations Resource
Slide 27: Strong Growth Momentum…To Continue
ANANDRATHI Private Wealth. uncomplicated Strong Growth Momentum…To Continue
Slide 28: Outperforming the Guidance
OUTPERFORMING THE GUIDANCE ~··································· Guidance given for FY24 Actual for Q1 FY24 Particulars* Achieved % of Guidance (Rs. Crs)* (Rs. Crs.)* Revenue 661 178 27% Profit After Tax 205 53 26% Asset Under Management (AUM) 47,000 43,413 - ~--■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ Note:
Slide 29: Consolidated Profit & Loss Summary
CONSOLIDATED PROFIT & LOSS SUMMARY Particulars (Rs. Crs.) Q1 FY24 Q1 FY23 Y-o-Y Q4 FY23 Q-o-Q MF – Equity & Debt 52.2 44.2 48.7 ... ... ..... ~ Distribution of Financial Products 121.5 86.2 93.0 IT Enabled Services 1.3 1.2 1.3 Others 3.4 1.9 4.1 .... ....•; -.. Total Revenue 178.4 133.5 33.6% 147.1
Slide 30: Historical Trends
HISTORICAL TRENDS Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) EPS (Rs.) AUM (Rs. Crs.) 559 169 40.46 38,993 224 15,264 46 11.07 FY18 FY23 FY18 FY23 FY18 FY23 Mar-18 Mar-23 Rs. 559 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
Slide 31: 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 10.3 Total Revenue 284.1 336.4 279.2 425.2 558.9 Emplo
Slide 32: 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 33: 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