IIFL Wealth Management soars after stellar Q1 performance

IIFL Wealth Management jumped 14.19% to Rs 1581.60 after the company's consolidated net profit surged 42% YoY to Rs 119 crore in Q1 FY22 from Rs 83 crore in Q1 FY21.

Revenue from operations rose by 43% to Rs 283 crore in Q1 FY22 from Rs 199 crore in Q1 FY21. Annual recurring revenue was at Rs 192 crore (up 51% YoY) and transactional / brokerage income was at Rs 91 crore (up 28% YoY) in the first quarter.

Sequentially, the company's net profit has increased by 16% from Rs 103 crore while revenue from operations have risen by 7% from Rs 266 crore in Q4 FY21.

Profit before tax in Q1 FY22 stood at Rs 151 crore, up by 38% from Rs 109 crore in Q1 FY21.

Total assets under management (AUM) grew 15% QoQ to Rs 2.82 trillion.

Karan Bhagat, MD & CEO, IIFL Wealth & Asset Management, said: "We have had a tremendous start to FY22 with the highest quarterly profit in the company's history.

We are also pleased to announce a special dividend of Rs 35 per share, in line with our focus on improving capital efficiency and moving towards a consolidated ROE of 20%.

The company has achieved critical milestones across all key focus areas - ARR AUM (at 50% of total AUM), ARR Net flows (at Rs 36,000 crore over last 5 quarters), and recurring revenues (at 67% of Q1 revenues) - overall, we are well on track in our ambitious business model change journey, initiated in 2019, for end of FY 2022.

Regulatory changes with regard to Advisory and accredited investors are path-breaking and we are excited by the opportunities it offers for us as well as for the overall industry. With our continued sharpening of IIFL-ONE - Advisory and Portfolio Management Propositions - we clearly remain market leaders in this space.

Our alternate asset management space continues to see a great response to new products from both institutions, family offices and HNIs across strategies, including listed equity; unlisted equity; credit as well as real estate.

Client sentiment continues to be positive with a bias towards risk. We continue to maintain a judicious allocation between fixed income and equities across portfolios - and broadly have an asset allocation split of 50% each in the above asset classes.

IIFL Wealth is a private wealth management firm in India. It serves the needs of high net worth and ultra-high net worth individuals, affluent families, family offices and institutional clients through a comprehensive range of tailored wealth management solutions.

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