Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — Q1 FY2023 Earnings Presentation
30 slides from Anand Rathi Wealth's earnings presentation, Jul 12, 2022
Slide 1: Anand Rathi - Submission of Investor Presentation
ANANDRATHI Private Wealth. uncomplicated Ref No: 33/2022-23 Dated: July 12, 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 Bandr
Slide 2: Investor Presentation Quarter Ended 30th June 2022
Investor Presentation Quarter Ended 30th June 2022
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: Private Wealth Business
ANANDRATHI Private Wealth. uncomplicated Private Wealth Business
Slide 5: Key Highlights for Q1FY23 – Private Wealth Business
Key Highlights for Q1FY23 – Private Wealth Business Trail Revenue (Rs. Crs.) Total Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) Return on Equity +36% +34% +42% +3% +17% +16% 41 42 129 39 39.9% 36.5% 39.4% 110 34 30 95 29 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22
Slide 6: One of the leading Private Wealth Solutions Firm in India
One of the leading Private Wealth Solutions Firm in India One of the leading non-bank wealth solutions firms in India & have been ranked amongst the top three non-bank mutual fund distributors in India by gross commission Started in 2002 as an AMFI registered mutual fund distribution (MFD) business
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 16.3% on-boarded and have subsequently elevated as UHNIs over a period of time 50.4% Slower and difficult to build, but far more sustainable with long term profitability 33.3% *As on 30th June 2022
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 Consistent client outcomes principles, risk and portfolio strategy Provide comparative investment options Ability to train and build RM pool internally C
Slide 9: Private Wealth Performance Metrics
Private Wealth Performance Metrics Product Wise AUM Mix (Rs. Crs.) Net Flows (Rs. Crs.) Trail Income coverage as % of Fixed Cost* 27,887 32,054 32,142 1,355 39% 46% 46% 840 16% 85% 12% 12% 82% 70% 33% 30% 30% 273 11% 12% 12% Jun-21 Mar-22 Jun-22 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Equity MF De
Slide 10: Advantage of Client Vintage and Stickiness
Advantage of Client Vintage and Stickiness Client Vintage (Nos.) AUM Vintage 6,371 7,082 7,477 54% 57% 58% 73% 77% 77% 46% 43% 42% 27% 23% 23% Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 > 3 Year 0 to 3 Year > 3 Year 0 to 3 Year Net Client Addition (Nos.) Client Attrition (% of AUM lost)* 395 1.68% 1.
Slide 11: Increasing Share of Higher Vintage Relationship Managers (RMs)
Increasing Share of Higher Vintage Relationship Managers (RMs) Vintage Wise Relationship Managers (Nos.) Regret RM Attrition* 223 271 271 1.32% 1.15% 99 120 85 68 54 68 0.37% 104 97 70 Jun-21 Mar-22 Jun-22 Q1FY22 Q4FY22 Q1FY23 > 5 Year 3 to 5 Year <3 Year *RM with AUM greater than Rs. 40 crores 10
Slide 12: India's Wealth Story to unlock in coming years
India’s Wealth Story to unlock in coming years Anand Rathi Wealth : Well, poised to grow exponentially
Slide 13: Industry Growth Drivers
Industry Growth Drivers Increasing Penetration of Mutual Fund Market in India Increase in HNI population in India Assets managed by the Indian Penetration of MF Industry ✓ In the past three decades, per capita incomes have multiplied mutual fund industry (AUM to GDP Ratio - India V/S Other (Rs. Tril
Slide 14: 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 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 Other % of
Slide 15: Digital Wealth – New Age Business
Digital Wealth – New Age Business
Slide 16: Digital Wealth – Strategy, Philosophy & Opportunities
1. Digital Wealth – Strategy, Philosophy & Opportunities Leveraging technology to cater to the mass affluent segment through a Phygital Model DW – A Holistic Solution Challenges faced by Customers ✓ Poor Quality of advice and service due to inadequately skilled, low inexperienced & high attrition ch
Slide 17: Digital Wealth: Scaling up with use of Technology
Digital Wealth : Scaling up with use of Technology Customer Segment : Mass Affluent having existing financial assets: Rs. 10 lakhs – Rs. 5 crores AuM (Rs. Crs.) Clients (Nos.) 852 819 3,907 4,021 674 3,348 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Core Revenue Model Unique Approach to Wealth Solutio
Slide 18: Omni Financial Advisor (OFA) – New Age Business
Omni Financial Advisor (OFA) – New Age Business
Slide 19: 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) with Rs. 5-50 crores of AUM Top 3 Pain Points of MFDs OFA - Our Solutions The Anand Rathi Advantage ✓ Lack of Infrastructure & Tech with small MFDs ✓ Mobile –led Tech
Slide 20: OFA - Leveraging technology to cater the retail segment
OFA - Leveraging technology to cater the retail segment Key Functionalities : Subscription Model, MFD and his Clients get access to our platform. (MFD – Web + Mobile, MFD’s Clients – Mobile) OFA enables MFDs with unique features such as: OFA provides a co-branded mobile first integrated technology p
Slide 21: Leadership Team
ANANDRATHI Private Wealth. uncomplicated Leadership Team
Slide 22: Board of Directors
Board of Directors Mr. Anand Rathi Mr. Amit Rathi Mr. Pradeep Kumar Gupta Mr. Rakesh Rawal Chairman & Non-Executive Director Non-Executive Director Non-Executive Director Executive Director & CEO Mr. Mohan Tanksale Mr. Ramesh Chandak Mr. K. G. Somani Mrs. Sudha Navandar Independent Director Independ
Slide 23: 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 from the • Post Graduate Diploma in Management – majors in • Rank holder Chartered Accountant and S
Slide 24: Key Personnel – Business & Financial Heads
Key Personnel – Business & Financial Heads Mr. Chethan Shenoy Mr. Rajesh Bhutra Mr. Niranjan Babu Ramayanam Director & Head – Product & Research CFO Head – Operations Mr. Bharath Rathore Mr. Arjun Guha Mr. Manish Srivastava Executive Director & Unit Head, Executive Director & Unit Head, Mumbai Direc
Slide 25: Strong Growth Momentum… To Continue
Strong Growth Momentum… To Continue
Slide 26: Consolidated Business Summary
Consolidated Business Summary Particulars (Rs. Crs.) Q1 FY23 Q1 FY22 Y-o-Y Q4 FY22 Q-o-Q FY22 MF – Equity & debt 19,281 16,056 20.1% 19,434 -0.8% 19,434 Other Securities 9,853 9,341 5.5% 9,591 2.7% 9,591 Others 3,827 3,164 21.0% 3,881 -1.4% 3,881 AUM 32,961 28,561 15.4% 32,906 0.2% 32,906 Particular
Slide 27: Historical Trends
Historical Trends Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) EPS (Rs.) AUM (Rs. Crs.) 426 127 30.49 32,906 224 15,264 46 11.07 FY18 FY22 FY18 FY22 FY18 FY22 Mar-18 Mar-22 17% 29% 29% 21% Growth is on CAGR basis All financial numbers are on Consolidated Basis 26
Slide 28: Historical Financials
Historical Financials Particulars (Rs. Crs.) FY18 FY19 FY20 FY21 FY22 MF – Equity & Debt 88.9 104.0 99.6 90.2 154.0 Other securities 130.4 169.0 227.7 170.6 258.8 IT Enabled Services 1.7 3.6 4.6 4.5 4.8 Others 2.7 7.5 4.6 13.9 8.1 Total Revenue 223.7 284.1 336.4 279.2 425.6 Employee costs 104.2 132.
Slide 29: Historical Balance Sheet
Historical Balance Sheet Assets (Rs. Crs) Mar-19 Mar-20 Mar-21 Mar-22 Equity & Liabilities (Rs. Crs) Mar-19 Mar-20 Mar-21 Mar-22 Non - Current Assets 84.7 259.1 245.6 279.0 Total Equity 135.0 197.9 253.2 355.3 Property Plant & Equipments 7.5 8.9 7.2 80.8 Share Capital 13.5 13.5 13.8 20.8 CWIP - 65.4
Slide 30: 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