Anand Rathi Q2 PAT climbs 32% YoY to Rs 76 cr in FY25

The financial products distributor's consolidated net profit jumped 32.38% to Rs 76.11 crore in Q2 FY25 as compared to Rs 57.49 crore posted in Q2 FY24.

Revenue from operations surged 32.80% YoY to Rs 242.48 crore in the quarter ended 30 September 2024.

For the quarter ended 30 September 2024, profit before tax was Rs 102.18 crore, reflecting a growth of 31.47% compared to Rs 77.72 crore posted in the same quarter previous year.

During the quarter, assets under management (AUM) stood at Rs 75,084 crore, up 57% as compared with Rs 47,957 crore recorded in Q2 FY24. Share of Equity Mutual Funds in AUM increased to 55% as of September 2024 and 50% as of September 2023.

In Q2 FY25, the companys net inflows surged by 128% year-on-year to Rs 5,700 crore, while net inflows in Equity Mutual Funds increased by 64% YoY to Rs 3,116 crore for the quarter ended 30 September 2024.

Mutual Fund distribution revenue rose by 70% YoY to Rs 195 crore, while the annualized Return on Equity (ROE) stood at 44%.

On half-year basis, the company's consolidated net profit jumped 35.09% to Rs 149.35 crore in H1 FY25 as against 110.55 crore posted in H1 FY24. The compays Revenue surged 34.25% YoY to Rs 480.09 crore in H1 FY25.

Meanwhile, the companys board declared interim dividend of Rs 7 per share of face value of Rs 5 each for FY25. The company has fixed 18 October 2024 as record date for the said dividend.

Rakesh Rawal, chief executive officer (CEO), said, We are thrilled to announce another exceptional financial result. In H1 FY25 our total revenue grew by 35% year-on-year to Rs 495 crore and Profit after Tax was Rs 150 crore, representing growth of 35% year-on-year. Our Assets Under Management (AUM) has seen a significant increase of 57% to Rs 75,084 crore. In the first half of FY25, we welcomed 1,066 new client families, bringing our total count of client families to 10,977.

Indias growth story is being celebrated as the global economy faces geopolitical challenges and slow growth. As the fastest-growing large economy, India is projected to achieve a 7% GDP growth for FY25, driven by strong domestic demand, government reforms and increased capital expenditure, which has also boosted its market capitalization.

In light of such strong economic growth, the companys prospects are positive, supported by the rising HNI population who are seeking a strategic approach to wealth creation.

Feroze Azeez, deputy chief executive Officer said, Indias strong economic fundamentals have driven increased interest from both domestic and foreign investors. This trend is reflected in consistent inflows into the equity markets, with new investments hitting record highs month-on-month. Such a positive momentum is expected to strengthen the Indian equity markets further, fostering an environment conducive to long-term capital appreciation and broadening of the investor base.

Our client centric approach has resulted in 0.28% client attrition rate in terms of AUM lost during the first half of FY25. We take immense pride in achieving zero regret RM attrition for the fifth consecutive quartera true testament to our robust entrepreneurial work culture and unwavering commitment to our teams growth and satisfaction.

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

The scrip shed 0.37% to settled at Rs 4,040.50 on the BSE.

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