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.
The company is looking at a long-term yield of
1.3-1.4%.
|