Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — Q4 FY2024 Earnings Presentation
39 slides from Anand Rathi Wealth's earnings presentation, Apr 12, 2024
Slide 1: Submission of Investor Presentation to exchanges
ANAND RATHI Private Wealth. uncomplicated Ref No: 12/2024-2 Dated : rill ,2024 The M anager, The Ma na ger, Listi ng Department, Listing Departme nt, The National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, 5th Floor, Plot C/1, G Block, Phlroze Jeejeebhoy Tower, Sandra - Kurla Complex
Slide 2: Investor Presentation Quarter & Year Ended 31st March 2024
Great Place To Work® Certified OCT 2023 - OCT 2024 INDIA Private Wealth. uncomplicated Investor Presentation Qu a r te r & Ye a r E n d e d 3 1 st M a r c h 2 0 2 4 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: Consolidated Highlights
ANANDRATHI Consolidated Highlights $
Slide 5: Strong Q4 FY24 Financial Performance
STRONG Q4 FY24 FINANCIAL PERFORMANCE •••••••••••••••••••••••••••••••••••• Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) AUM (Rs. Crs.) & PAT Margins 34% YoY 65% YoY 33% YoY 52% YoY 29.0% 28.8% 197 59,351 147 80 57 38,993 43 49 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24
Slide 6: Strong FY24 Financial Performance
STRONG FY24 FINANCIAL PERFORMANCE ••••••••••••••••••••••••••••••••••• Profit After Tax (Rs. Crs.) Total Revenue (Rs. Crs.) Trail Revenue (Rs. Crs.) Return on Equity (RoE)* & PAT Margins 35% YoY 40% YoY 34% YoY 30.2% 30.0% 752 40% 40% 267 226 559 190 169 FY23 FY24 FY23 FY24 FY23 FY24 Mar-23 Mar-24 ••
Slide 7: Performance Metrics
PERFORMANCE METRICS Equity MF Net Inflows Product Wise AUM Mix (Rs. Net Inflows (Rs. Crs.) SIP Flows (Rs. Crs.) (Rs. Crs.) Crs.) & Avg. AUM Yield +41% +49% -27% 1.5% 1.5% 1,771 1,059 127 1,256 775* 85 12% 16% 28% 24% 12% 9% Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 51% +41% +47% +39% 48% 7,182 4,628
Slide 8: Private Wealth Business
ANANDRATHI Private Wealth. uncomplicated Private Wealth Business
Slide 9: Focused on More Rewarding HNI Segment
FOCUSED ON MORE REWARDING HNI SEGMENT Share in Current AUM (%)* 23.6% (PY 17.0%) ~s.SO CtOl'.eS S,1:. a."O~e 52.4% • These were mostly HNIs when they were on-boarded (PY 51.2%) and have subsequently elevated as UHNIs over a period 24.0% (PY 31.8%) • Slower and difficult to build, but far more sustai
Slide 10: 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 11: Key Operational Highlights for FY24
KEY OPERATIONAL HIGHLIGHTS FOR FY24 Relationship Active Client AUM Per RM Clients Per RM AUM (Rs. Crs.) Managers (Nos.) Families (Nos.) (Rs. Crs.) (Nos.) 52% +13% +19% 57,807 332 9,911 174 30 29 293 8,352 129 37,942 Mar-23 Mar-24 Mar-23 Mar-24 Mar-23 Mar-24 Mar-23 Mar-24 Mar-23 Mar-24 10 Data Driven
Slide 12: Advantages of Client Vintage and Stickiness
ADVANTAGES OF CLIENT VINTAGE AND STICKINESS Client Vintage (Nos.) Client (AUM) Vintage Client Attrition (% of AUM lost) D 8,352 D9,911 0.31% 20% 21% 0.22% 37% 40% Q4FY23 Q4FY24 1.10% 80% 79% 1.02% 63% 60% Mar-23 Mar-24 Mar-23 Mar-24 FY23 FY24 • 0 to 3 Year • > 3 Year • 0 to 3 Year • > 3 Year As on 3
Slide 13: Increasing Share of Higher Vintage Relationship Managers
INCREASING SHARE OF HIGHER VINTAGE RELATIONSHIP MANAGERS Vintage Wise Relationship 293 332 Managers (Nos.) 164 137 52 36 39 RMs added in 104 132 last 12 months Mar-23 Mar-24 •• > 5 Year 3 to 5 Year • <3 Year Regret RM Attrition* 1.42% One of the lowest regret RM attrition in the industry. 0.64% 0.35
Slide 14: Equity Net Inflows: Industry vs ARWL
EQUITY NET INFLOWS : INDUSTRY VS ARWL Industry (Rs. Crs.) ARWL (Rs. Crs.) Net Inflows of Net Inflows - SIP Equity MF Net Net Inflows - SIP Period Growth / Equity SIP Purchases SIP Purchases Purchases Inflows Purchases Oriented Schemes FY:2020-21 (25,966) 96,080 (1,22,046) 125 170 (45) FY:2021-22 1,6
Slide 15: Ranked Amongst 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 16: India's Wealth Story to Unlock in Coming Years
ANANDRATHI India’s Wealth Private Wealth. uncom plicated Story to unlock in coming years… II I11 I Ill 1111 03 04 ,II II 111 II OS 08 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 17: 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) (Equity AUM to GDP Ratio - India V/S Other Economies) 64% 55.0 ~-------., I I I I I I I I 44% I I I I I I I I I 30% I I I 27% 21.4 I I -~ I I I I I I I
Slide 18: 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 Crores) (Rs. Lakh Crores) There is massive Interest in potential to increase Equities has gone the share of
Slide 19: Financial Assets of Indian Households
FINANCIAL ASSETS OF INDIAN HOUSEHOLDS -------------, I Financial I Mutual Govt Small PF and Currency Deposits I Equity Insurance Assets Total I Funds Securities Savings Pension I Rs. Lakh Crore I I 2012 128.5 11.5 44.8 I 4.4 8.8 I 1.2 21.7 17.9 18.2 I - I 2023 370.8 31.2 129.3 ..I 23.6 23.7 I 2.0 42
Slide 20: Digital Wealth - New Age Business
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Slide 21: 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 22: Digital Wealth: Scaling Up with 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.) 1,545 Unique Approach to Wealth Solutions 1,051 • • • I Mar-23 Mar-24 Delivers service Seeks to build a Attempts to build Clients (Nos.
Slide 23: Omni Financial Advisor (OFA) – New Age Business
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Slide 24: OFA – Provides a Technology Platform to 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 of OFA Our solution OFA Advantages MFD’s ✓ Lack of Infrastructure & ✓ Mobile –led Tech Tech with small MFDs ✓ Superior Technology Infrastructure Solu
Slide 25: 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.) 5,677 5,994 Client Business engagement dashboard Goal planning Mar-23 Mar
Slide 26: Leadership Team
A N A N D RcoAmT HI plicated Private Wealth. un Leadership Team
Slide 27: 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 28: 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 29: 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 C
Slide 30: Key Personnel – Unit Heads
KEY PERSONNEL – UNIT HEADS Mr Arjun Mr Amitabh Mr Bharath Mr Suraj Ms Protima Guha Lara Rathore Sinha Dhawan Mumbai Mumbai Bengaluru Bengaluru Hyderabad Mr Adil Mr Manish Mr Swapan Mr Subhendu Mr Raj Vijeta Chacko Srivastava Chakraborty Harichandan Sharma Delhi Delhi Pune Pune Dubai Mr Ashish Mr Raj
Slide 31: Strong Growth Momentum…To Continue
ANANDRATHI Private Wealth. uncomplicated Strong Growth Momentum…To Continue
Slide 32: Outperforming the Guidance
OUTPERFORMING THE GUIDANCE •~·························· Guidance given for Revised Guidance given FY24 for FY24 Actuals for FY24 Guidance for FY25 Particulars (Rs. Crs.) in April 2023 in October 2023 (Rs. Crs.) (Rs. Crs.) (Rs. Crs.) Revenue 661 720 752 910 Profit After Tax 205 220 226 280 Asset Unde
Slide 33: Consistent Quarterly Performance
CONSISTENT QUARTERLY PERFORMANCE ARWL (Consolidated) Sr. No. Period PAT (Rs. Crs) Growth (Y-o-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 Q2FY24 57.7 34.3% 9 Q3FY24 58.0 34.3% 10 Q4FY24 56.9 33.1%
Slide 34: Consolidated Profit & Loss Summary
CONSOLIDATED PROFIT & LOSS SUMMARY Particulars (Rs. Crs.) Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y MF – Equity & Debt 80.4 48.7 . 71.5 . 266.6 189.9 ..!······································~······································ .. ·····································1··················
Slide 35: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Assets (Rs. Crs) Mar-24 Mar-23 Equity & Liabilities (Rs. Crs) Mar-24 Mar-23 Non - Current Assets Total Equity Property Plant & Equipments 90.5 92.5 Share Capital 20.9 20.8 CWIP 0.8 0.0 Other Equity 627.9 447.4 Goodwill 2.9 2.9 Non-Controlling Interest 12.7 11.9 Intangible
Slide 36: Historical Trends
HISTORICAL TRENDS Revenue (Rs. Crs.) Profit After Tax (Rs. Crs.) EPS (Rs.) AUM (Rs. Crs.) 752 226 54.10 59,351 224 15,264 46 11.07 FY18 FY24 FY18 FY24 FY18 FY24 Mar-18 Mar-23 Rs. 752 crores Rs. 226 crores Rs. 54.10 per share Rs. 59,351 crores 22% CAGR 30% CAGR 30% CAGR 25% CAGR -- All fin an cial n
Slide 37: 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 38: 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 .........................................................
Slide 39: Thank You!
THANK YOU ! Company: Anand Rathi Wealth Limited CIN: L67120MH1995PLC086696 Mr. Rajesh Bhutara, CFO / Vishal Sanghavi – Head IR rajeshbhutra@rathi.com / vishalsanghavi@rathi.com Tel: 022 6281 7003 / +91 98920 52454