Explained: Why have 360 One WAM shares plunged 8% in trade today?

360 One WAM 's total expenses increased 39.6 per cent Y-o-Y to Rs 299 crore in Q2 FY25 as compared to Rs 214 crore

360 One WAM shares dropped 7.5 per cent intraday on Tuesday and registered an intraday low of Rs 1,020.95 per share on the BSE. The selling pressure in the stock came after the company's revenue decreased 11.3 per cent quarter-on-quarter (Q-o-Q) in the July-September quarter of the current finacial year (Q2 FY25).

At around 1:52 PM, 360 One WAM shares were down 6.44 per cent at Rs 1,033.4464 per share. In comparison, the BSE Sensex was down 0.60 per cent at 80,663.03. The market capitalisation of the company stood at Rs 37,778.82 crore. 

In its Q2 results, the stock broking firm reported a slip of 11.3 per cent in revenue to Rs 618 crore as compared to Rs 697 crore in the June quarter. However, on a year-on-year (Y-o-Y) basis, the revenue increased 40.1 per cent. 

Total expenses, too, increased 39.6 per cent Y-o-Y to Rs 299 crore in Q2 FY25 as compared to Rs 214 crore. On a quarterly basis, the expenses increased 13 per cent.

Meanwhile, 360 One WAM's profit after tax (PAT) stood at Rs 247 crore for the second quarter as compared to Rs 185 crore a year ago. This translates into an increase of 33.4 per cent. 

360 ONE WAM Q2 AUM
The company's assets under management (AUM) stood at Rs 5,69,372 crore for the second quarter, consisting of ARR AUM of Rs 2,42,619 crore and Transactional / Brokerage AUM of Rs 3,26,753 crore.

In Q2 FY25, 360 ONE Wealth onboarded over 160 clients (with more than Rs 10 crore Annual Recurring Revenue Assets Under Management (ARR AUM). 

ARR AUM is helpful for investors and analysts assessing the sustainability and scalability of a company's business model.

During this period, clients having ARR AUM above Rs 50 crore, increased by more than 70. 

Overall, the segment managed assets for more than 7,500 relevant clients during Q2.

360 ONE WAM fund raising update
360 ONE asset raised Rs 5,000 crore in commitments through private equity funds and private credit funds. It also raised $350 million from a marquee global investor under the Institutional Mandates segment. 

“Our Q2 results reflect our continued focus on asset growth and enhancing our client mix, alongside notable deal activity in our private credit and private equity segments. Clients seek trusted brands, expert advisors, and access to innovative products - key drivers of growth in the wealth and asset management industry. As a leader in wealth management and alternatives-focused asset management, we remain committed to further solidifying our growth trajectory,” said  Karan Bhagat, founder, MD & CEO, 360 One WAM.

In the past one year, 360 One WAM shares have gained 91.7 per cent against Sensex's rise of 26 per cent.