Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — Q1 FY25 Earnings Presentation
40 slides from Anand Rathi Wealth's earnings presentation, Jul 11, 2024
Slide 1: Submission of Investor Presentation to exchanges
ANANDRATHI Priva e Wealth. uncomplicafe Ref No: 46/2024-25 Dated: 11 th July, 2024 The Manager, The Manager, Listing Department, Listing Department, The NaHonal Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, 5th Floor, Plot C/1, G Block, Phlroze Jeejeebhoy Tower, Bondre• Kurla Complex, B
Slide 2: Investor Presentation Quarter Ended 30th June 2024
ANANDRATHI Private Wealth. uncomplicated INVESTOR - - ~· - - - =====::! , PRESENTATION ....., . Q u a r t e r E n d e d 3 0 th J u n e 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 …4-9 …30-38 2 Private wealth business …10-22 3 Future unlocking of India’s wealth story …23-26 4 New businesses …27-29 3 Holistic Wealth Solutions CREATION. PROTECTION.TRANSMISSION.
Slide 5: Consolidated Highlights
ANDRATHI AN WeaIth· uncomplicated Private Consolidated Highlights ,. f D 0
Slide 6: Quick glance: Consolidated performance
Quick glance: Consolidated performance (INR Crs.) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Total revenue 178.4 189.1 187.3 197.2 245.4 Total revenue y/y % 33.6 36.9 33.6 34.2 37.5 Revenue from operations 175.0 182.6 182.4 184.3 237.6 Revenue from operations y/y % 33.0 34.2 32.2 28.9 35.8 Total cost 107.5
Slide 7: Quick glance: Key metrices
Quick glance: Key metrices Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 AUM (Rs. Crs.) 43,413 47,957 55,057 59,351 69,018 y/y % 31.7 33.8 42.9 52.2 59.0 Active client families 8,747 9,212 9,641 9,911 10,382 y/y % 17.0 16.2 17.5 18.7 18.7 Client attrition (% of AUM lost) 0.2 0.2 0.3 0.3 0.1 Relationship manage
Slide 8: Strong Q1 FY25 Financial Performance
STRONG Q1 FY25 FINANCIAL PERFORMANCE Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) AUM (Rs. Crs.) & PAT Margins : ----------------------~ I 0 38% Y/Y : I 0 70% Y/Y 0 38% Y/Y 0 59% Y/Y I I 89 69,018 29.8% 29.9% 245 73 178 52 43,413 53 I I I I I I I I I I I '-----------
Slide 9: Performance Metrics for Q1 FY25
PERFORMANCE METRICS FOR Q1 FY25 Equity MF net inflows Product wise AUM mix Net inflows (Rs. Crs.) SIP flows (Rs. Crs.) (Rs. Crs.) 43,413 69,018 173% Y/Y 462% Y/Y 63% Y/Y 13% 15% 143 12% 3,364 2,091 28% 24% 7% 11% 88 54% 1,230 48% 372 Jun-23 Jun-24 Equity MF Debt MF Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24
Slide 10: Equity Net Inflows: Industry vs ARWL
EQUITY NET INFLOWS : INDUSTRY VS ARWL Industry (Rs. Crs.) ARWL (Rs. Crs.) Share in Industry Net inflows of SIP Net inflows - Equity MF SIP Net inflows - Equity MF Net inflows - Period growth / equity purchases SIP purchases net inflows purchases SIP purchases net inflows SIP purchases oriented schem
Slide 11: Private Wealth Business
ANANDRATHI Private Wealth. uncomplicated Private Wealth Business
Slide 12: Focused on More Rewarding HNI Segment – Share in AUM
FOCUSED ON MORE REWARDING HNI SEGMENT – SHARE IN AUM 25.2% These were mostly HNIs when they were on-boarded and have subsequently elevated as UHNIs over a period (PY 18.1%) 52.7% This is the target segment of HNI clients for on-boarding by ARWL (PY 51.2%) Slower and difficult to build, but 22.1% mor
Slide 13: Key Operational Highlights for Q1 FY25
KEY OPERATIONAL HIGHLIGHTS FOR Q1 FY25 Relationship Active Client AUM Per RM Clients Per RM AUM (Rs. Crs.) Managers (Nos.) Families (Nos.) (Rs. Crs.) (Nos.) 187 29 360 67,291 10,382 137 28 42,246 8,747 308 Jun-23 Jun-24 Jun-23 Jun-24 Jun-23 Jun-24 Jun-23 Jun-24 Jun-23 Jun-24 12 Holistic Wealth Solut
Slide 14: Advantages of Client Vintage and Stickiness
ADVANTAGES OF CLIENT VINTAGE AND STICKINESS Client Vintage (Nos.) Client (AUM) Vintage Client Attrition (% of AUM lost) 8,747 10,382 41,764 66,799 0.2% 20% 20% 38% 40% 79% 0.1% 80% 80% 62% 60% Jun-23 Jun-24 Jun-23 Jun-24 ■ > 3 Year ■ 0 to 3 Year ■ > 3 year ■ 0 to 3 year Q1FY24 Q1FY25 13 Holistic Wea
Slide 15: Increasing Share of Higher Vintage Relationship Managers
INCREASING SHARE OF HIGHER VINTAGE RELATIONSHIP MANAGERS Vintage wise Relationship Managers (Nos.) Regret RM Attrition* 308 360 0.7% 167 144 33 0.0% 45 Q1FY24 Q1FY25 160 119 Jun-23 Jun-24 □ <3 Year ■ 3 to 5 year □ >5 year One of the lowest regret RM attrition in the industry. For last twelve months
Slide 16: 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 135 research and specialist members work tirelessly, dedicating over 1,800 workforce hours annually, to refine our processes and offer uncompl
Slide 17: 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 16 Holistic Wealth Solutions CREATION. PROTEC
Slide 18: Geographical Presence
GEOGRAPHICAL PRESENCE Our- Company has. offoc·es. in 17 major- Indian cities.. c.onsideredto bE HNI hots.pots..rnd a r-epre-s:entative offiC!e in Dubai. J.-, -1 b e· ~ t ,;.:;, 6 nn oi 6 a l e:,:, c!:, N e1.v e lh i =6 ct , ~-=±'e r :!l b e,- ct e'd e :!lid 4:> Vi~o h i:,<rtn ~ ne C!3 t o id ai 4:>
Slide 19: 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 20: 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 21: 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 Hum
Slide 22: 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 21 Holistic Wealth Solutions CREAT
Slide 23: 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 22 Holistic Wealth Solutions CREATION. PROTECTION.TRANS
Slide 24: Future Unlocking of India's Wealth Story
ANANDRATHI Private Wealth. uncomplicated MIDDLE CLASl2S BECOMING ~oM c Sc RICHT RICH 1IA MIDDLE CLASS HIGH INCOME HIGH INCOME @ Future Unlocking of India’s Wealth Story ~~ $ ·~ (j J., ~ ~ ~rt", ~ ~~ ~~~~ it&_
Slide 25: 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% 61.2 r · -·-·---: 49.0% r · -·-·---: I I 30.9% 30.3% 23.8 10.1% 7.3% 6.5% I I . I I Mar-19
Slide 26: 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 27: 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 28: New Businesses
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Slide 29: 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.) 5,106 1,727 1,167 4,305 Jun-23 Jun-24 Jun-23 Jun-24 28 Holistic Wealth Solutions CREATION. PROTECTION.TRANSMISSION.
Slide 30: 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) 6,064 1,41,124 2
Slide 31: Strong Growth Momentum to Continue
ANDRATHI AN Wea Ith· uncomplicated Private Strong Growth Momentum to Continue
Slide 32: Consistent Quarterly Performance
CONSISTENT QUARTERLY PERFORMANCE ARWL (Consolidated) Sr. No. Period PAT (Rs. Crs) Growth (Y/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% 10 Q4FY24 56.9 33.1%
Slide 33: Outperforming the Guidance
OUTPERFORMING THE GUIDANCE Guidance given for Actuals for Q1 FY25 Achieved % of Particulars FY25 (Rs. Crs.) (Rs. Crs.) guidance Revenue 910 245 27% Profit after tax 280 73 26% Asset under management (AUM) 72,000 69,018 Note: All the above numbers are on consolidated basis 32 Holistic Wealth Solution
Slide 34: Consolidated Profit & Loss Summary
CONSOLIDATED PROFIT & LOSS SUMMARY Particulars (Rs. Crs.) Q1 FY24 Q1 FY25 Y/Y % FY23 FY24 Y/Y % MF – Equity & Debt 52.2 89.0 189.9 266.6 Distribution of financial products 121.5 147.1 353.9 452.1 IT enabled services 1.3 1.5 4.9 5.6 Others 3.4 7.8 10.3 27.6 Total revenue 178.4 245.4 38% 558.9 752.0 3
Slide 35: 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 34 Holistic Wealth Solutions CREATION
Slide 36: 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 37: 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 38: 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 39: 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 40: Anand Rathi Wealth Limited
.~ ANANDRATHI Private Wealth. uncomplicated .:/ .• ,1- • • • Anand Rathi Wealth Limited CIN: L67120MH1995PLC086696 Mr. Rajesh Bhutara, CFO 1, Mr. Vishal Sanghavi, Head IR rajeshbhutra@rathi.com vishalsanghavi@rathi.com Tel: 022 6281 7003 • • • • • • - 11 • @ ~ ::::::::::::::::::::::::=:--r=-:;;===~~