Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — Q3 FY2025 Earnings Presentation
43 slides from Anand Rathi Wealth's earnings presentation, Jan 13, 2025
Slide 1: Exchange submission letter for investor presentation
Ref No:101/2024-25 Dated:13th January, 2025 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, Bandra (E), Dalal Street, Mumbai - 400
Slide 2: Investor Presentation: Quarter & Nine Months Ended 31st December 2024
INVESTOR PRESENTATION Q u a r t e r & N i n e M o n t h E n d e d 3 1 st D e c 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 …32-41 2 Private Wealth Business …11-23 3 Future Unlocking of India’s wealth story …24-28 4 New Businesses …29-31 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 PEFORMANCE (INR Crs.) Q3FY24 Q3FY25 Growth y/y% 9MFY24 9MFY25 Growth y/y% Revenue from Operations 182.4 237.0 29.9 540.0 717.1 32.8 Total Revenue 187.3 244.2 30.4 554.8 739.3 33.3 Employee Benefit Expenses 78.4 100.6 28.3 238.2 318.8 33.8 Other Expenses 30.9 39.5 27.7 90.0
Slide 7: Consistently Rewarding Shareholders
CONSISTENTLY REWARDING SHAREHOLDERS Interim Dividend Final Dividend Total Dividend Particular (Rs / Share) (Rs / Share) (Rs / Share) FY22 5 6 11 FY23 5 7 12 FY24 5 9 14 7 - - Buyback of Rs 164.65 Crores (excluding charges & taxes) FY25 Bonus Issue in the ratio of 1:1(One bonus equity share for every
Slide 8: Strong Q3 FY25 Financial Performance
STRONG Q3 FY25 FINANCIAL PERFORMANCE Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) AUM (Rs. Crs.) & PAT Margins 30% Y/Y 52% Y/Y 33% Y/Y 39% Y/Y 109 31.0% 31.7% 76,402 244 77 187 55,057 72 58 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Q3FY24 Q3FY25 Dec-23 Dec-24 7 Holistic Wealth Sol
Slide 9: Strong 9M FY25 Financial Performance
STRONG 9M FY25 FINANCIAL PERFORMANCE Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) Return On Equity (ROE)* & PAT Margins 33% Y/Y 63% Y/Y 34% Y/Y 529 bps 30.5% 30.7% 739 227 44.8% 303 555 169 39.5% 186 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 9MFY24 9MFY25 *Annualised
Slide 10: Performance Metrics for Q3 & 9M FY25
PERFORMANCE METRICS FOR Q3 & 9M FY25 Net inflows Equity MF net inflows Monthly SIP Inflows Product wise AUM mix (Rs. Crs.) (Rs. Crs.) (Rs. Crs.) 18% 39% 14% 55,057 76,402 2,715 2,715 67 3,445 14% 14% 1,948 2,907 58 24% 26% 9% 5% Q3FY24 Q3FY25 Q3FY24 Q3FY25 Sep-24 Dec-24 69% 51% 53% 9,145 67 55% 5,83
Slide 11: Market Share Analysis: Equity Net Inflows
MARKET SHARE ANALYSIS: EQUITY NET INFLOWS Industry (Rs. Crs.) ARWL (Rs. Crs.) Share in Industry Net inflows of For growth / equity Net inflows - Equity MF net Net inflows - Equity MF Net inflows - SIP purchases SIP purchases Period oriented SIP purchases inflows SIP purchases net inflows SIP purchas
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 24.5% These were mostly HNIs when they were on-boarded (PY 22.4%) and have subsequently elevated as UHNIs over a period 53.7% Target Segment – slower and difficult to (PY 51.9%) build but more sustainable and scalable 21.8% Clients yet to allocate
Slide 14: Key Operational Highlights
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.) 383 195 74,574 11,426 30 30 53,566 9,641 322 166 Dec-23 Dec-24 Dec-23 Dec-24 Dec-23 Dec-24 Dec-23 Dec-24 Dec-23 Dec-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) 0.29% 9,641 11,426 0.14% 20% 21% 39% 41% Q3FY24 Q3FY25 0.71% 80% 79% 61% 59% 0.32% Dec-23 Dec-24 Dec-23 Dec-24 9MFY24 9MFY25 > 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* 322 383 0.65% 179 2 0.26% 0.28% 155 50 1 1 38 0.00% 154 Q3FY24 Q3FY25 9MFY24 9MFY25 129 Dec-23 Dec-24 <3 Year 3 to 5 year >5 year One of the lowest regret RM attrition in the indus
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 18 Holistic Wealth Solutions CREATION. PROTECTION.TRANSMISSION.
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 Ms. Tejal Shah Ramayanam Chief Human Resource Chief Operating Officer Officer 21 Holistic Wealth Solutions CREATION
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 Crs) - India V/S Other Economies) 72.1% 66.9 49.0% 30.9% 30.3% 23.8 10.1% 7.3% 6.5% Mar-19 Dec-24 India Brazil Japan Germany UK USA Wo
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 Small PF and Govt financial Equity mutual Deposits funds - Insurance Currency savings pension securities assets funds others Rs. Lakh Crs. 5.7 1.8 55.4 22.9 20.1 2.2 1.4 21.1 12.5 Mar-14 143.0 7.5 98.4 24.6 12.5 36.1 26.6 143.0 48.2 64.9 7.3
Slide 29: Flow of Annual Household Financial Savings
FLOW OF ANNUAL HOUSEHOLD FINANCIAL SAVINGS As % of Gross Savings 2011-12 2015-16 2016-17 2019-20 2020-21 2021-22 2022-23 2023-24 Bank Deposits 56.4% 41.6% 58.1% 35.6% 39.1% 30.0% 34.7% 41.8% Provident and Pension Funds 10.3% 19.4% 20.2% 19.5% 16.2% 21.1% 21.1% 20.9% Life Insurance Funds 21.0% 17.7%
Slide 30: New Businesses
ANANDRATHI Private Wealth. uncomplicated New Businesses
Slide 31: 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 Crs AUM (Rs. Crs.) Clients (Nos.) 1,827 5,772 1,491 4,650 Dec-23 Dec-24 Dec-23 Dec-24 30 Holistic Wealth Solutions CREATION. PROTECTION.TRANSMISSION.
Slide 32: 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) 22 6,273 148,185
Slide 33: Strong Growth Momentum to Continue
Strong Growth Momentum to Continue
Slide 34: Consistent & Market Agnostic Performance
CONSISTENT & MARKET AGNOSTIC PERFORMANCE - Presenting 13 Quarterly Results ARWL (Consolidated) Sr. No. Period Nifty Performance PAT (Rs. Crs) Growth (Y/Y %) 1 Q1FY23 39.71 33.6% -9.6% 2 Q3FY25 77.30 33.2% -8.4% 3 Q4FY23 42.71 23.4% -4.1% 4 Q2FY24 57.69 34.3% 2.3% 5 Q4FY24 56.86 33.1% 2.7% 6 Q3FY23 4
Slide 35: Outperforming the Guidance
OUTPERFORMING THE GUIDANCE Revised Guidance Actuals for Achieved % of Particulars given for FY25 9M FY25 guidance (Rs. Crs.) (Rs. Crs.) Revenue 980 739 75% Profit after tax 295 227 77% Asset under management (AUM) 80,000 76,402 Note: All the above numbers are on consolidated basis 34 Holistic Wealth
Slide 36: Consolidated Profit & Loss Summary
CONSOLIDATED PROFIT & LOSS SUMMARY Particulars (Rs. Crs.) Q3 FY24 Q3 FY25 Y/Y % 9MFY24 9MFY25 Y/Y % MF – Equity & Debt 71.5 108.7 52.0% 186.1 303.4 63.0% Distribution of financial products 109.5 126.7 15.8% 349.7 409.0 17.0% IT enabled services 1.4 1.6 10.8% 4.1 4.7 12.7% Others 4.8 7.2 48.3% 14.7 2
Slide 37: 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 38: 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 37 Holistic Wealth Solutions CREATION
Slide 39: 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 40: 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 41: 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 42: ARWL Journey: 2019-24
ARWL JOURNEY: 2019-24 2019 2020 Crossed the milestone of Rs.20,000 Crs 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 2024
Slide 43: 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