Anand Rathi Wealth Q1 Results: Net profit rises 38% to ₹73 crore, revenue up 35% YoY; AUM at ₹69,018 crore

Anand Rathi Wealth Q1 Results: Anand Rathi Wealth announced its April-June quarter results for fiscal 2024-25 (FY25) on Thursday, July 11, reporting a rise of 38 per cent in consolidated net profit at ₹73 crore, compared to ₹54 crore in the corresponding period last year. The leading domestic brokerage firm's revenue from operations in the first quarter of the current fiscal rose 35 per cent to ₹243 crore, compared to ₹175 crore in the year-ago period.

The brokerage's mutual fund (MF) revenue increased by 70 per cent year-on-year (YoY) to ₹89 crore in the June quarter, while net inflows grew by 173 per cent YoY to ₹3,364 crore. The equity MF net inflows increased by 462 per cent YoY to ₹2,091 crore, according to Anand Rathi's exchange filing today.

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Anand Rathi Wealth Q1 Results: Key Metrics

The share of equity MF in AUM increased to 54 per cent as of June 2024, compared to 48 per cent as of June 2023. The domestic brokerage also completed a buyback of Rs. 164.65 crore (excluding charges and taxes) successfully completed in June 2024.

In the private wealth (PW) segment, the number of active client families increased by 19 per cent YoY to 10,382, and the number of relationship managers (RMs) grew by 17 per cent to 360. The technology platform for mutual fund distributors (MFDs) saw an increase in subscribers, reaching 6,064 from 5,688 in the previous year.

‘’Our client base is becoming more informed and data driven, so they understand simple and uncomplicated wealth approach to achieve the objective of around 14 per cent. This is evident from just 0.1 per cent client attrition in terms of AUM lost during the first quarter of FY25,'' said Feroze Azeez, Deputy Chief Executive Officer (CEO), Anand Rathi Wealth.

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In the digital wealth (DW) segment, total revenue increased by 13 per cent year-on-year to ₹6.89 crore, while AUM grew by 48 per cent to ₹1,727 crore. The omni financial advisors (OFA) segment also performed well, with total revenue increasing by 18 per cent year-on-year to ₹1.84 crore. 

The company's board approved the allotment of 52,020 equity shares of ₹5 each fully paid up to Feroz Azeez (eligible employee) upon exercise of stock options pursuant to ESOP Scheme 2018.

Consequent upon allotment of the above shares, the paid-up share capital of the stands increased from ~ 20,72,91,485 consisting of 4, 14,58,297 shares of ₹5 each to z 20,75,51,585 consisting of 4, 15, 10,317 shares of~ 5/- each.

“Indian markets have witnessed new all-time highs supported by strong performance of India Inc. With this, we anticipate a noticeable increase in the number of high net-worth individuals (HNIs) in the country and creating a huge growth potential for the wealth business,'' said Rakesh Rawal, Chief Executive Officer (CEO), Anand Rathi Wealth.

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‘’We added 471 client families and crossed the milestone of 10,000 client families, further improving the financial goals of our clients…With multiple growth drivers in place, we are confident that our company has the potential to grow by 20–25 per cent in the long-term,'' added Rawal. 

On the operating performance, Anand Rathi Wealth's earnings before interest, tax, and amortization expenses (EBITDA) in the June quarter rose 33.8 per cent to ₹98.2 crore, compared to ₹73.4 crore in the corresponding period last year. Margin stood at 41.3 per cent compared to 41.9 per cent in the year-ago period.

On Thursday, shares of Anand Rathi Wealth settled 0.48 per cent higher at ₹4,137.70 apiece on the BSE.