Anand Rathi Wealth (ANANDRATHI) Q4 20/21 earnings summary

Executive summary

• FY21 earnings fell amid pandemic-driven market volatility, lower fee income and trading losses; cost rationalization partly offset the impact, with revenue rebounding in Q4 and the first two months of FY22.

• Private wealth services target HNI and Ultra HNI clients through relationship managers, data-backed recommendations and estate planning; ~700 Wills and 170+ family trusts supported by March 2021.

Financial highlights

• Consolidated total revenue was ₹27,924.85 lakh in FY21 vs ₹33,642.72 lakh in FY20; revenue from operations was ₹26,533.02 lakh vs ₹33,182.67 lakh.

• Consolidated net profit was ₹4,454.95 lakh vs ₹6,139.27 lakh; standalone net profit was ₹4,418.99 lakh vs ₹7,127.80 lakh.

• Consolidated profit before tax was ₹6,288.27 lakh vs ₹8,660.69 lakh; total expenses were ₹21,636.58 lakh vs ₹24,982.03 lakh.

• Consolidated employee benefits expense decreased to ₹15,075.48 lakh from ₹16,720.18 lakh; other expenses fell to ₹4,499.22 lakh from ₹5,773.09 lakh.

Outlook and guidance

• Revenue rebounded significantly in Q4 and the first two months of FY22; management expressed confidence in overcoming pandemic challenges and continuing sustained growth.

• Second-wave lockdowns and curfews weakened consumer confidence and renewed near-term uncertainty; improving vaccination and easing restrictions were expected to support economic normalization.

• Favorable demographics, rising incomes, financial literacy, retail participation and capital-market buoyancy were identified as drivers of Indian wealth-management growth.