Anand Rathi Group attributes its growth in the last quarter to several key factors, including an increase in the number of clients, a higher average AUM per client, an overall growth in assets under management (AUM), and an expanded team of relationship managers. These elements have collectively contributed to the company’s recent success.
In the second quarter, the company’s revenue increased by 32% to nearly INR 250 crores, with profitability also rising by 32% to reach INR 76 crores. For the half-year period, revenue saw a 35% growth, as did profit after tax (PAT). Notably, the AUM grew by approximately 57%, escalating from INR 48,000 crores to INR 75,000 crores.
Looking forward, Anand Rathi Group has outlined a strategic growth plan for the next two to three years following their public listing three years ago. The company has consistently achieved a quarterly growth rate of around 30% and anticipates maintaining a growth rate of at least 20% to 25%, barring any unforeseen events.
In terms of industry outlook, Anand Rathi Group foresees the wealth management sector’s AUM growing by 15% to 20% annually, with the number of clients increasing by more than 10% to 12% each year. The growth is driven by an increasing number of wealthy clients seeking effective wealth management solutions, thereby expanding the business size considerably. The company sees significant opportunities in acquiring new clients and enhancing the wallet share of existing ones.
Regarding recent changes in the F&O business, Anand Rathi Group emphasizes that these have no impact on their operations, as the company does not advise clients in F&O activities nor generate revenue from them. Consequently, any fluctuations in the F&O market are not expected to affect the group’s wealth management business.