Anand Rathi Wealth Limited Reports 38% Profit Increase in Q1 FY25
Anand Rathi Wealth Limited has announced its performance for the first quarter of FY25, reporting a consolidated net profit of Rs 73 crores for April to June 2024. This marks a 38% increase compared to the same period last year. The company also recorded a total revenue of Rs 245 crores, reflecting a significant 38% year-on-year growth.
According to a press release, the company’s assets under management (AUM) surged by 59% year-on-year, reaching Rs 69,018 crores. Revenue grew by 38% to Rs 245 crores, while profit before tax (PBT) increased by 40% to Rs 99 crores. The profit after tax (PAT) also saw a substantial rise, growing by 38% to Rs 73 crores for the quarter.
Anand Rathi Wealth Limited’s mutual fund revenue saw a remarkable increase of 70% year-on-year, amounting to Rs 89 crores. Net inflows grew impressively by 173% year-on-year to Rs 3,364 crores, with equity mutual fund net inflows skyrocketing by 462% to Rs 2,091 crores. The share of equity mutual funds in AUM increased to 54% as of June 2024, up from 48% in June 2023. The company reported an annualized return on equity (ROE) of 42.8%.
Additionally, a buyback program amounting to Rs 164.65 crores (excluding charges and taxes) was successfully completed in June 2024. In the Private Wealth (PW) segment, the number of active client families increased by 19% year-on-year to 10,382, and the number of relationship managers (RMs) grew by 17% to 360. In the Digital Wealth (DW) segment, total revenue increased by 13% year-on-year to Rs 6.89 crores, while AUM grew by 48% to Rs 1,727 crores. The Omni Financial Advisors (OFA) segment also performed well, with total revenue increasing by 18% year-on-year to Rs 1.84 crores. The technology platform for mutual fund distributors (MFDs) saw an increase in subscribers, reaching 6,064 from 5,688 in the previous year.
Commenting on the results, Rakesh Rawal, Chief Executive Officer, stated, “India’s economy is on a strong footing with GDP expected to grow at 7.2% this year, making it the fastest-growing market globally.” He added, “In this context, Indian markets have reached new all-time highs supported by the strong performance of India Inc. We anticipate a noticeable increase in the number of High Net-worth Individuals (HNIs) in the country, creating significant growth potential for the wealth business.”
Feroze Azeez, Deputy Chief Executive Officer, added, “India’s strong fundamentals continue to attract investments into the equity markets with incremental inflows recording new highs every month. During Q1 FY25, our equity mutual fund net inflows increased by 462% YoY to Rs 2,091 crores. This continued growth underscores the deep trust and confidence our clientele places in our value proposition.”