Anand Rathi Wealth Ltd. · NSE:ANANDRATHI
Anand Rathi Wealth — H1 FY23 Earnings Presentation
35 slides from Anand Rathi Wealth's earnings presentation, Oct 13, 2022
Slide 1: Anand Rathi - Submission of Investor Presentation
ANANDRATHI Private Wealth. uncomplicated Ref No: 57/2022-23 Dated: October 13, 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 Ba
Slide 2: Investor Presentation Quarter & Half Year Ended 30th September 2022
Investor Presentation Qu a rte r & H a lf Ye a r E n d e d 3 0 th S e pte mb e r 2 0 2 2
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 s
Slide 4: Strong H1 FY23 Financial Performance (Consolidated)
STRONG H1 FY22 FINANCIAL PERFORMANCE (Consolidated) Profit After Tax (Rs. Crs.) & Total Revenue (Rs. Crs.) EPS (Rs.) AUM (Rs. Crs.) PAT Margins + 3 4 % Yo Y + 3 7 % Yo Y + 3 7 % Yo Y + 1 6 % Yo Y 29.8% 30.4% 272 19.8 35,842 30,989 202 83 14.5 60 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 Sep-21 Sep-2
Slide 5: Private Wealth Business
ANANDRATHI Private Wealth. uncomplicated
Slide 6: One of the Leading Private Wealth Solutions Firms in India
ONE OF THE LEADING PRIVATE WEALTH SOLUTIONS FIRM IN INDIA Who we are… Presence across India One of the leading non-bank wealth solutions firms in India & have been ranked P amongst the top three non -bank mutual fund distributors in India by gross commission Started in 2002, we have evolved into pro
Slide 7: Focused on More Rewarding HNI Segment
FOCUSED ON MORE REWARDING HNI SEGMENT S h a re i n C u r re n t AU M ( % ) * T h e s e we re m o stl y H NIs w h e n th ey we re o n - b o a rd ed a n d h ave s u bs e quently e l evate d a s U H NIs R s . 5 0 C ro re s 16.8% o ve r a p e ri o d o f ti m e a n d a b o ve R s . 5 C ro re s – R s . 5
Slide 8: Offer End-to-End, Process Driven, Standardized & Well Researched Solution
O F F ER EN D - TO- END, P RO CES S D R I V EN , STA N DA R D IZED & WEL L R ES EA RCHED S O LU TI ON Standardized Solution Client goals Discussion with clients on investment Consistent client outcomes principles, risk and portfolio strategy Provide comparative investment options Ability to build an
Slide 9: Key Highlights for H1 FY23 – Private Wealth Business
KEY HIGHLIGHTS FOR H1 FY23 – PRIVATE WEALTH BUSINESS Profit Before Tax (Rs. Crs.) Profit After Tax (Rs.) Trail Revenue (Rs. Crs.) Total Revenue (Rs. Crs.) & PBT Margins & PAT Margins 41.8% 31.3% 41.1% 30.6% +33% +35% 88 262 66 194 +37% +38% 110 82 80 60 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 H1FY
Slide 10: Key Highlights for Q2 FY23 – Private Wealth Business
KEY HIGHLIGHTS FOR Q2 FY23 – PRIVATE WEALTH BUSINESS Profit Before Tax (Rs. Crs.) Profit After Tax (Rs. Crs.) Trail Revenue (Rs. Crs.) Total Revenue (Rs. Crs.) & PBT Margins & PAT Margins 40.9% 40.7% 42.8% 32.0% 30.3% 30.5% +6% +3% 45 129 133 42 36 +9% +8% 100 57 43 53 39 41 30 Q2FY22 Q1FY23 Q2FY23
Slide 11: Private Wealth Performance Metrics
PRIVATE WEALTH PERFORMANCE METRICS Product Wise AUM Mix Net Flows (Rs. Crs.) AUM per RM (Rs. Crs.) 11% 12% +106% 2,474 R s . 1 2 9 c ro re s 31% 29% 11% 15% +21% 1,119 1,202 928 Clients per RM 48% 43% Sep-21 Sep-22 Q2FY22 Q2FY23 H1 FY22 H1FY23 Others ~29 Market Linked Debentures (MLDs) Debt MF Equit
Slide 12: Advantages of Client Vintage and Stickiness
ADVANTAGES OF CLIENT VINTAGE AND STICKINESS Client Attrition Client Vintage (Nos.) Client (AUM) Vintage Net Client Addition (Nos.) (% of AUM lost)* 6,678 7,928 451 1.90% 307 1.42% 21% 28% 46% 41% Q2FY22 Q2FY23 Q2FY22 Q2FY23 79% 846 1.65% 72% 54% 59% 1.29% 569 Sep-21 Sep-22 Sep-21 Sep-22 H1FY22 H1FY2
Slide 13: Increasing Share of Higher Vintage Relationship Managers
INCREASING SHARE OF HIGHER VINTAGE RELATIONSHIP MANAGERS Vintage Wise Relationship 234 271 Managers (Nos.) 78 90 271 67 59 3 7 R M s i n c re a s e d in last 12 months 122 89 Sep-21 Sep-22 <3 Year 3 to 5 Year > 5 Year 0.88% Regret RM Attrition* 0.74% O n e o f t h e l o w e s t re g re t R M a tt r
Slide 14: Outperforming the Guidance
OUTPERFORMING THE GUIDANCE Guidance given for FY23 Actuals for H1 FY23 Particulars % Achieved (Rs. Crs.) (Rs. Crs.) Asset Under Management (AuM) 39,000 34,893 41% Revenue 495 262 53% Profit After Tax 155 82 53% 13
Slide 15: Ranked Amongst the Top Three Non-Bank Mutual Fund Distributors
RANKED AMONGST THE TOP THREE NON -BANK MUTUAL FUND DISTRIBUTORS Anand Rathi Wealth Limited is one of the leading non-bank wealth solutions firms in India and have been ranked amongst the top three non-bank mutual fund distributors Gross Commission Rank based on Gross Commission Yield (%)* for Rank b
Slide 16: India's Wealth Story to Unlock in Coming Years
India’s Wealth Story to unlock in coming years… An an d Rat h i Wealt h : Well, p o is ed to g ro w ex p o n e nt iall y
Slide 17: Industry Growth Drivers
INDUSTRY GROWTH DRIVERS Increasing Penetration of Mutual Fund Market in India Assets managed by the Penetration of MF Industry Indian mutual fund industry (AUM to GDP Ratio - India V/S Other (Rs. Trillion) Economies) ✓ Further, India accounts for less than 2% of the global mutual fund industry, repr
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 Individual’s Financial Assets (INR 2025E INR 97.3 Trillion INR 414.8 Trillion trillion) Financial assets as 21.93% 12.84% Mutual fund assets to 512.2 Other % of
Slide 19: Digital Wealth - New Age Business
Digital Wealth - New Age Business
Slide 20: Digital Wealth – Strategy, Philosophy & Opportunities
1. DIGITAL WEALTH – STRATEGY, PHILOSOPHY & OPPORTUNITIES Leveraging technology to cater to the mass affluent segment through a Phygital Model Challenges faced by Customers Comprehensive packaged solution delivered through a fully ✓ Poor Quality of advice and service due to inadequately variable and
Slide 21: 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.) Core Revenue Commission on Partners on fully Model Mutual Fund (MF) and variable model, hence +23% distribution of Other no fixed cost
Slide 22: Omni Financial Advisor (OFA) – New Age Business
Omni Financial Advisor (OFA) – New Age Business
Slide 23: OFA – Provides a Technology Platform to the MFDs & Their Clients
2. OFA – PROVIDES A TECHNOLOGY PLATFORM TO THE MFDs & THEIR CLIENTS Anand Rathi OFA Unique Proposition Target Segment – ARN Holder (Certified Mutual Fund Distributors) with Rs. 5 -50 crores of AUM Once MFD is onboarded, the account set up is done within a week Top 3 Pain Points of The Anand Rathi OF
Slide 24: 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.) 5,109 5,368 5,439 Client Business engagement dashboard Goal planning Sep-
Slide 25: Leadership Team
ANANDRATHI Private Wealth. uncomplicated
Slide 26: Board of Directors
BOARD OF DIRECTORS Mr. Anand Rathi Mr. Pradeep Kumar Gupta Mr. Rakesh Rawal Chairman & Non-Executive Director Non-Executive Director Executive Director & CEO Mr. Mohan Tanksale Mr. Ramesh Chandak Mr. K. G. Somani Mrs. Sudha Navandar Independent Director Independent Director Independent Director Inde
Slide 27: 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 • Post Graduate Diploma in Management – majors • Rank holder Chartered Accountant and Senior t
Slide 28: Key Personnel – Business & Financial Heads
KEY PERSONNEL – BUSINESS & FINANCIAL HEADS Mr. Chethan Shenoy Mr. Rajesh Bhutra Mr. Niranjan Babu Ramayanam Director & Head – Product & Chief Financial Officer Chief Operating Officer Research Mr. Arjun Guha Mr. Bharath Rathore Ms. Protima Dhawan Executive Director & Unit Head, Executive Director &
Slide 29: Strong Growth Momentum…To Continue
Strong Growth Momentum…To Continue
Slide 30: Consolidated Profit & Loss Summary
CONSOLIDATED PROFIT & LOSS SUMMARY Revenue / Cost (Rs. Crs.) Q2 FY23 Q2 FY22 Y-o -Y Q1 FY23 Q-o -Q H1 FY23 H1 FY22 Y-o -Y Operating Revenue 136.1 101.7 34% 131.6 3% 267.7 199.3 34% Other Revenue 2.0 2.1 1.9 4.0 2.9 Total Revenue 138.1 103.8 33% 133.5 3% 271.6 202.2 34% Employee costs 58.9 46.6 60.3
Slide 31: Balance Sheet as on 30th September 2022
BALANCE SHEET AS ON 30 th SEPTEMBER 2022 Assets (Rs. Crs) Sept-22 Mar-22 Equity & Liabilities (Rs. Crs) Sept-22 Mar-22 Non - Current Assets Total Equity Property Plant & Equipments 91.4 80.8 Share Capital 20.8 20.8 Goodwill 2.9 2.9 Other Equity 380.6 322.9 Intangible assets 24.7 27.1 Non Controlling
Slide 32: 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 Rs . 4 2 6 c ro re s R s . 1 2 7 c ro re s R s . 3 0 . 5 p e r s h are R s . 3 2 , 9 06 c ro re s +17% CAGR +29% CAGR +29% CA
Slide 33: Historical Financials
HISTORICAL FINANCIALS Particulars (Rs. Crs.) FY18 FY19 FY20 FY21 FY22 Operating Revenue 221.0 276.6 331.8 265.3 417.5 Other Revenue 2.7 7.5 4.6 13.9 8.1 Total Revenue 223.7 284.1 336.4 279.2 425.6 Employee costs 104.2 132.8 167.2 150.8 191.5 Other expenses 38.3 56.8 57.7 45.0 48.8 Total Operating Co
Slide 34: 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 Total Equity Property Plant & Equipments 7.5 8.9 7.2 80.8 Share Capital 13.5 13.5 13.8 20.8 CWIP - 65.4 69.0 - Goodwill 0.4 2.9 2.9 2.9 Other Equity 1
Slide 35: 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