• Q2 Consolidated Revenue up 32.8% YoY and Net Profit up 32%
• AUM raised 57% from Rs.47957 Cr to Rs.75084 Cr YoY
• Out of total revenue of Rs.250 Cr, 106 Cr is trail revenue which is jumped 69% from Rs.62 Cr to Rs.106 Cr.
• Minimum investment from new client is Rs.1 Cr which was Rs.50 Lakh earlier.
• Currently having offices in 17 Cities in India and one representative office in Dubai.
• In last 5 years Indian MF industry has grown at a CAGR of 20.7% from Rs.23.8 Lakh Cr to Rs.67 Lakh Cr. Penetration of MF Industry in India is still around 7% compared to 72% in US
• Active Client family increased from 9212 to 10977 YoY
• As a business policy they were use to focus on HNI but now they have started focusing on SIP flow too (As what Prudent Corporate is doing). Most fund inflow is through lumpsum payment not through SIP. SIP flow is new business and is growing at good pace
• Company claim that they are market agnostic (In simple words Market Correction affect less to their business)

• On question of reduction in commission by one of big AMC, Company replied that their prime focus on only Mutual fund and not on AIF or PMS so they enjoy premium attention among MF players. So risk of yield compression is least case scenario for Anand Rathi.
• Management is confident of keep growing at 20% CAGR for years to come (approx. 5-10 years)
• Question raised on succession plan for Feroze Azeez. Management given satisfactory answer.

Source:

Investor Presentation

Concall Recording

Observation:

1. At present Wealth Management companies should be on wait and watch mode as such strong funds inflow may not sustain. Two key players we are focusing upon are Anand Rathi and Nuvama Wealth.
2. Trail revenue from Mutual Fund AUM as commission is key point to note in this industry unlike other products of Wealth Management Companies.