Скачать или смотреть Anand Rathi Wealth Limited Q4 FY25 Results Conference Call.

Anand Rathi Wealth Limited Revealed Good Performance During the Quarter fourth quarter (Q4) and full financial year (FY25), ending March 31, 2025.

The call emphasized strong financial performance, strategic initiatives, and management's outlook.

1. Strong Financial Performance in FY25
Revenue Growth: Consolidated revenue increased by 30% year-on-year to ₹981 crores, slightly above the revised guidance of ₹980 crores.
Profit After Tax (PAT): PAT rose by 33% year-on-year to ₹301 crores, exceeding the revised guidance of ₹295 crores.
Assets Under Management (AUM): Total AUM grew by approximately 30% year-on-year to ₹77,013 crores, with equity mutual funds comprising 53% of AUM.
Consistent Growth: Anandati has maintained growth above 20% for 14 consecutive quarters, a feat achieved by only six companies in the top thousand by market cap.
Net Mobilization: Despite challenges, net mobilization in the private wealth business reached ₹3,472 crores in Q4, leading to a 76% year-on-year growth in net flow for the full year.
2. Digital and Omni-Financial Advisor (OPA) Business Growth
The digital wealth business saw AUM growth of 17% to ₹1,812 crores, with a 25% increase in clients.
The OPA business has 6,447 subscribers with platform assets of ₹1,43,000 crores.
3. Shareholder Value and Dividends
A buyback of ₹165 crores was completed, and a bonus share was issued at a 1:1 ratio.
A final dividend of ₹7 per share was declared, maintaining the total dividend at ₹14 per share post-bonus.
4. Q4 FY25 Performance
Q4 consolidated revenue was ₹241 crores, a 22% year-on-year growth.
PAT for Q4 was ₹74 crores, reflecting a 30% year-on-year growth, with a PAT margin improvement to 30.5%.
5. Guidance for FY26
Revenue guidance for FY26 is set at ₹1,175 crores, with PAT guidance at ₹375 crores, indicating approximately 20% revenue growth and 24% PAT growth.
6. Strategic Initiatives and Expansion
A UK subsidiary was incorporated, and a wealth management business license is being sought.
A representative office in Bahrain is planned to expand global operations, focusing on inbound investments into India.
7. Relationship Manager (RM) Team
Plans to add 50-60 RMs this year, with a talent pool of 460 account managers being trained.
Annual AUM per RM has increased to ₹198 crores, with potential capacity for more clients.
8. Structured Products
Structured products are viewed as complementary to mutual funds, with a primary issuance of ₹1,392 crores in the quarter.
All 147 structured products that matured last year delivered maximum coupons.
9. Views on Market and Regulations
Management believes the Indian market is more investor-friendly, and they are cautious about the new Specialized Investment Fund (SIF) product due to low leverage and high minimum ticket sizes.
10. Other Income
Increased other income was attributed to interest from fixed deposits and changes in the fair value of long-term unlisted equity investments.
11. Operating Leverage
While some operating leverage is anticipated, management prefers to reinvest in various business areas for long-term growth.
12. Total Addressable Market (TAM) for Structured Products
Management sees the structured product market as one to create rather than capture, estimating that 25-35% of collected funds could ideally go into structured products.
13. Client Portfolio Allocation
Client portfolios typically allocate 45% to 65% to long-only equity mutual funds, with the remainder in structured products.
14. Guidance Assumptions
Revenue and PAT guidance are based on a bottom-up approach, with conservative market return assumptions.
15. Client Flow Breakdown
Approximately 63% of client flow came from existing clients, while 37% came from new client families.
16. NRI Clients and GIFT City
NRI clients make up about 10-12% of the client base, and the idea of setting up a subsidiary in GIFT City for NRI clients is under consideration.