Anand Rathi Wealth Limited Q4 FY22 Earnings Conference Call Summary

Key highlights from Anand Rathi Wealth Limited (ANANDRATHI) Q4 FY22 Earnings Concall

Management Update:

• ANANDRATHI said that going forward, with broad based recovery in the economy, improved market condition and growing awareness of a dedicated wealth management advisor, the company expects an increased inflow of funds and consistent growth in its AUM.

Q&A Highlights:

• Rohan Mandora from Equirius asked about the lines of business in terms of acquisition opportunities. Anand Rathi, Founder said that it will be in the wealth management only. The company’s idea is to focus only on the wealth management business.

• Rohan Mandora from Equirius asked about the AUM movement, how much of it was coming from new clients, existing clients and MTM. Rajesh Bhutara CFO said the company had a new inflow of about INR2,700 crore in last FY. Out of this 50% was from existing clients and about the same from new set of clients.

• Rohan Mandora from Equirius asked about new client acquisition run rate currently and outlook for FY23. Feroze Azeez Deputy CEO answered that run rate would increase. Looking at the number of RMs, the company expects 0.7-0.8 per month per RM new acquisitions. Therefore the company is heading towards it.

• Karthik Sahni of Myriad Asset Management asked about the target share of mutual funds over the next three years. Anand Rathi, Founder replied that the target for the next three years is to try to get to 50% of income from mutual funds and in terms of assets it will be 55%.

• Senthil Kumar with Joindre Capital Services asked about the MLD business outlook. Feroze Azeez Deputy CEO replied that all the decision related to allocation of mutual funds, structure product (MLDs) is dependent on the macro-economic variable and the client objective. On outlook, the company said the MLD business of 30-35% helps the company maintain the standard deviations of 8% three year standard deviation.

• Devesh Agrawal of IIFL asked about the target for RM additions for FY23. Anand Rathi, Founder replied that RM additions for next year, the company is looking at 40-50 people.

• Franklin Moraes at Equentis Wealth Advisory asked if the company is looking at diversifying its revenue source from mutual funds. Feroze Azeez Deputy CEO answered that the company is not oriented to mutual fund of MLD for any product; the orientation is to the client objective.