Anand Rathi Wealth conducted a conference call on 15 April 2024 to discuss the financial results for the quarter ended March 2024. Rakesh Rawal, CEO and Feroze Azeez, Deputy CEO of the company addressed the call:

Highlights:

The healthy GDP growth is expected to attract more HNI than ultra-HNI seeking professional wealth management services. There is noticeable shift towards investments in financial assets and specifically equity-related asset classes like equity mutual funds. Thus, the wealth management industry is poised for a strong growth ahead.

The strategy of the company is to provide uncomplicated and standardized solution to clients backed by meticulous, data-driven research.

The consolidated asset under management of the company has surged 52% yoy to at Rs 59351 crore end March 2024.

The company has posted a remarkable 35% yoy increase in revenue to Rs 752 crore and 34% surge in profit after tax to Rs 226 crore surpassing guidance for FY2024.

The net flows surged 41% to Rs 7182 crore. Equity mutual fund net flows grew by 47% to Rs 4628 crore in FY24.

The board of the company has approved the proposal to buy back 3.7 lakh equity shares of the company at Rs 4450 per share for an aggregate amount not exceeding Rs 164.64 crore that represents 0.88% of the total paid up equity share capital.

The flagship private wealth management business AUM grew 52% yoy to Rs 57807 crore.

On a net basis, the company has added 39 new relationship managers in the last 12 months, bringing total RM count to 332. Number of active client families increased by 19% yoy and stood at 9,911 end March 2024.

The client attrition rate in terms of AUM lost was 1.02% for FY24 as compared to 1.1% last year, reflecting client-centric approach and a strong research-backed solution.

The company is targeting AUM growth of 20-25% on sustainable basis.

Digital Wealth business an extension of private wealth offering to the mass affluent segment has exhibited 47% yoy jump in AUM and stood at Rs 1545 crore.

The company is focusing on achieving 40% PBT margin and 30% PAT margin.

The company expects RM addition of 40-50 per year. The company knows their next 100 RMs, at least 80 out of the next 100 RMs are getting trained. The company works on them for 2-3 years to get the same cultural fit focused on client centricity. There is nil attrition for nine months.

The company is looking at growing RM base by at least 10% on a sustainable basis yoy for the next 5 years. The number of RMs could reach 380 in FY2025.