Anand Rathi Wealth Limited Posts 38% Profit Surge in Q1 FY25

Anand Rathi Wealth Limited reported a significant 38% increase in net profit for Q1 FY25, reaching Rs 73 crores. Revenue and AUM also saw considerable growth, highlighting the company's robust financial performance. Mutual fund revenue and net inflows recorded impressive year-on-year increases, driven by strong market confidence.

Anand Rathi Wealth Limited has reported a consolidated net profit of Rs 73 crores for the first quarter of FY25, reflecting a 38% increase compared to the same period last year. The firm recorded a total revenue of Rs 245 crores, marking a substantial 38% year-on-year growth.

The company’s assets under management (AUM) surged by 59% year-on-year, reaching Rs 69,018 crores. Revenue grew by 38% to Rs 245 crores, while profit before tax (PBT) climbed by 40% to Rs 99 crores. Profit after tax (PAT) also rose by 38% to Rs 73 crores for the quarter.

Mutual fund revenue showed remarkable growth of 70% year-on-year, totaling Rs 89 crores. Net inflows surged by 173% to Rs 3,364 crores annually, with equity mutual fund net inflows soaring by 462% to Rs 2,091 crores.

The share of equity mutual funds in AUM increased to 54% as of June 2024, up from 48% in June 2023. The firm's annualized return on equity (ROE) stood at 42.8%. Furthermore, a buyback program worth Rs 164.65 crores was successfully completed in June 2024.

In the Private Wealth (PW) segment, active client families grew by 19% year-on-year to 10,382, and the number of relationship managers increased by 17% to 360. The Digital Wealth (DW) segment saw revenue rise by 13% to Rs 6.89 crores, with AUM up by 48% to Rs 1,727 crores. The Omni Financial Advisors (OFA) segment witnessed an 18% revenue increase to Rs 1.84 crores.

Subscribers to the technology platform for mutual fund distributors (MFDs) grew to 6,064 from 5,688. CEO Rakesh Rawal commented, “India's economy is on a strong footing, with GDP expected to grow at 7.2% this year, making it the fastest-growing market globally.”

Deputy CEO Feroze Azeez added, “India’s strong fundamentals continue to attract investments into equity markets. Our equity mutual fund net inflows increased by 462% YoY to Rs 2,091 crores in Q1 FY25, highlighting the trust and confidence our clients place in us.”