Non-bank wealth solutions company Anand Rathi Wealth Ltd on Monday (January 13) reported a 33.3% year-on-year (YoY) increase in net profit at ₹77.3 crore for the third quarter that ended December 31, 2024.
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In the corresponding quarter of the previous fiscal, Anand Rathi Wealth posted a net profit of ₹58 crore, the company said in a regulatory filing. The company’s revenue from operations increased 29.9% to ₹237 crore against ₹182.4 crore in the year-ago period.
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At the operating level, EBITDA surged 34.3% to ₹107 crore in the third quarter of this fiscal over ₹79.7 crore Q3 FY24.
The EBITDA margin stood at 45.2% in the reporting quarter versus 43.7% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
The board of directors decided to allot bonus shares in the ratio of 1:1 i.e. one bonus equity share for every one equity share held currently, subject to shareholders approval.
Anand Rathi Wealth reported strong growth across its business segments for the year ending December 2024. The company’s mutual fund distribution revenue surged by 63% YoY to ₹303 crore, driven by a 69% increase in net inflows, which reached ₹9,145 crore.
Equity mutual fund net inflows also showed substantial growth, rising 51% YoY to ₹5,831 crore, while the share of equity mutual funds in assets under management (AUM) grew to 55% from 52% the previous year. The company’s return on equity (ROE) stood at 45% on an annualised basis.
In the private wealth segment, Anand Rathi Wealth saw a 19% YoY increase in active client families, reaching 11,426. Additionally, the number of relationship managers (RMs) grew by 61, bringing the total to 383. The digital wealth business, a subsidiary of the company, saw total revenue grow by 18% YoY to ₹22 crore, with AUM expanding by 23% YoY to ₹1,827 crore.
Omni Financial Advisors (OFA), another subsidiary, also reported a 15% YoY revenue growth to ₹5.7 crore, and its technology platform subscriber base for mutual fund distributors and independent financial advisors (MFDs/IFAs) grew to 6,273 from 5,932 the previous year.
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The results came after the close of the market hours. Shares of Anand Rathi Wealth Ltd ended at ₹4,026, down by ₹121.05, or 2.92%, on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Jan 13, 2025 7:17 PM IST
