Anand Rathi Wealth (ANANDRATHI) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue reached ₹558.33 Cr, up 31% YoY; PAT was ₹168.60 Cr, up 33%, both record highs.

• AUM rose 18% YoY to ₹38,993 Cr; active client families increased 18% to 8,352, with 1,270 net additions.

• Management identified investment returns added to AUM, deeper client-family penetration, new clients and additional relationship managers as growth engines, targeting business growth of 20% or more.

Financial highlights

• Consolidated revenue increased to ₹558.33 Cr from ₹425.22 Cr; profit before tax rose to ₹227.89 Cr from ₹167.35 Cr.

• Consolidated PAT was ₹168.60 Cr versus ₹126.80 Cr; basic EPS rose to ₹40.46 from ₹30.50.

• Operating profit before interest, depreciation and tax was ₹248.43 Cr, versus ₹185.02 Cr in FY22.

• Net flows grew 78% YoY to ₹4,896 Cr; client AUM attrition declined to 1.10% from 1.49%.

Outlook and guidance

• Management considers growth of 20% or more in the business reasonable, supported by four growth engines: investment returns, greater wallet share, new clients and more RMs.

• The HNI population in India is projected to rise at a 12% CAGR, from 7.97 lakh in 2021 to 14.07 lakh in 2026.

• The Indian equity outlook was described as attractive over the medium and long term, while near-term volatility remains possible.