Shares of Anand Rathi Wealth Ltd surged during the trading session on Friday after the company announced a strong set of performance in the June 2024 quarter. The company announced its quarterly results after the market trading hours on Thursday.
Anand Rathi Wealth reported a net profit of Rs 73.4 crore, up 38 per cent on a year-on-year (YoY) basis in the quarter ended on March 31, 2024, said the company in the exchange filing. The company reported a net profit of Rs 53.2 crore in the year ago period.
The wealth management firm clocked a total revenue of Rs 245.4 crore, surging 38 per cent YoY, for the first quarter of financial year 2024-25. Its total revenue stood at Rs 178.4 crore in the same quarter previous financial year.
Shares of Anand Rathi Wealth surged more than 3.58 per cent to Rs 4285.85 during the trading session on Friday, commanding a total market capitalization of nearly 18,000 crore. The scrip had settled at Rs 4137.70 in the previous trading session on Thursday.
The number of active client families increased by 19 per cent YoY to 10,382, while the AUM of its subsidiary Digital Wealth (DW) increased 48 per cent YoY to Rs 1,727 crore. Its other subsidiary, Omni Financial Advisors, a technology platform provider to mutual fund distributors (MFDs) had 6,064 subscribers.
The total asset under management (AUM) of Anand Rathi Wealth stood at Rs 69,018 crore, jumping to 59 per cent on a yearly basis. The AUM for the company stood at Rs 43,413 crore in the year ago period. Mutual fund revenue increased by 70 per cent YoY to Rs 89 crore, while equity mutual fund net inflows increased 462 per cent YoY to Rs 2,091 crore.
Shares of Anand Rathi Wealth have rallied about 660 per cent from its IPO price at Rs 550 apiece. The company had raised a total of Rs 660 crore via its primary stake sale and the stock was listed at bourses in December 2021.
The Indian economy is on a strong footing with GDP expected to grow at 7.2 per cent for this year, making it the fastest growing market globally. In this backdrop, Indian markets have witnessed new all-time highs supported by strong performance of India Inc, said Rakesh Rawal, Chief Executive Officer at Anand Rathi Wealth.
"With this, we anticipate a noticeable increase in the number of High Net-worth Individuals (HNIs) in the country and thus, creating a huge growth potential for the wealth business," he said.
Anand Rathi Wealth is amongst India’s leading wealth firms, catering to high and ultra-high net worth individuals. The company has been in the business of private wealth following an uncomplicated approach and most of the clients have achieved their wealth objectives in the last few years. It has a presence across 17 cities in India and a representative office in Dubai.