SSPL WEALTH PVT LTD

Hot Pursuit

Scrips, which has significant changes during the market hours.

Anand Rathi PAT rises 33% YoY in Q3; board OKs 1:1 bonus issue

14-Jan-25 11:18 Hrs IST

For the quarter ended 31 December 2024, profit before tax was Rs 104.17 crore, registering a growth of 33.55% compared to Rs 78 crore posted in the same quarter previous year.

During the quarter, assets under management (AUM) stood at Rs 76,402 crore, up 39% YoY. Share of Equity Mutual Funds in AUM increased to 55% as of December 2024 as compared to 52% as of December 2023.

In Q2 FY25, the company's net inflows surged by 69% YoY to Rs 9,145 crore, while net inflows in Equity Mutual Funds grew by 51% YoY to Rs 5,831 crore for the quarter ended 31 December 2024.

Mutual Fund distribution revenue rose by 63% YoY to Rs 303 crore, while the annualized Return on Equity (ROE) stood at 45%.

On nine-month basis, the company's consolidated net profit jumped 34.44% to Rs 226.37 crore on 32.79% rise in net sales to Rs 717.13 crore in 9M FY25 over 9M FY24.

Meanwhile, the company's board recommended issuance of bonus shares in ratio of 1:1 i.e. 1 new equity share for every 1 existing equity share each held by the eligible shareholders as on the record date, subject to shareholders and any other applicable regulatory and statutory approvals.

Rakesh Rawal, chief executive officer (CEO), said, 'We are thrilled to report another outstanding financial result and extend our heartfelt gratitude to our clients and team members for their continued trust and support. During the nine-month period of FY25, our total revenue grew by 33% YoY to Rs 739 crore, while Profit after Tax (PAT) increased by 34% to Rs 227 crore. Our AUM recorded a significant rise of 39%, reaching Rs 76,402 crore.

We have achieved 75% of our revised revenue guidance of Rs 980 crore and 77% of our revised PAT guidance of Rs 295 crore in the first nine months of FY25. Additionally, we on boarded 1,785 new client families during last one year, bringing our total client base to 11,426 families.

We believe that our business holds inherent growth potential of 20-25%, which we expect to sustain for many years. Our confidence stems from our uncomplicated wealth solutions for our clients to build their wealth seamlessly.'

Feroze Azeez, deputy CEO said, 'The magnitude of capital poised to flow into India is substantial and unprecedented. With a growing investor base and positive macroeconomic indicators, the Indian equity market presents an unparalleled opportunity for both domestic and foreign investors. This vast pool of capital, combined with India's strong performance, makes the equity markets a more compelling investment destination.

We believe our performance has been consistent and market agnostic. If you look at the worst Nifty performance after we have got listed; was Q1 FY23 when it fell by 9.6% and last quarter when it fell by 8.4%. However, for that both quarters our profit grew by more than 33% on YoY basis. We have recorded highest ever quarterly net inflows during last quarter in spite sentiment not being the best. During 9M FY25 our total net inflows registered a remarkable YoY growth of 69%, reaching Rs 9,145 crore.

Our client centric approach has resulted in 0.28% client attrition rate in terms of AUM lost during the nine months of FY25. In the last quarter, we achieved near-zero regret RM attrition, following five consecutive quarters of zero regret RM attrition. This is a true testament to our entrepreneurial work culture and our unwavering commitment to the growth and satisfaction of our team.'

Anand Rathi Wealth is among India's leading non-bank wealth solutions firms, catering to high and ultra-high net worth individuals.

The scrip shed 0.67% to trade at Rs 3,986.45 on the BSE.