IIFL Wealth Management’s consolidated net profit rose 12.2% to Rs 171.54 crore in Q3 FY23 from Rs 152.94 crore recorded in Q3 FY22.
Total income stood at Rs 530.95 crore in Q3 FY23, down 7% as against Rs 570.62 crore posted in the corresponding quarter previous year.
Revenue from operations rose 10% to Rs 415 crore from Rs 378 crore reported in Q3 FY22. Annual Recurring Revenues was at Rs 276 crore in Q3 FY2, up 12% year on year (YoY).
Consolidated profit before tax increased by 12.8% YoY to Rs 223.25 crore in the quarter ended 31 December 2022.
The company’s revenue from Wealth Management was Rs 406.67 crore (down 9.52% YoY) while Asset Management stood at Rs 124.28 crore (up 2.58% YoY) during the quarter.
Karan Bhagat, MD & CEO, 360 ONE WAM, said, The global macro environment continues to remain moderate with high inflation and interest rates raising questions on growth in the short term. This uncertainty has resulted in volatility in all asset classes over the last quarter. While we remain cautiously optimistic in the near term, the comprehensiveness of our product offerings and advisory expertise helps in enabling clients to maintain an optimal asset diversification strategy and navigate the volatility of the current investment landscape.
Bhagat stated, For the quarter, despite a weak global geopolitical and macro environment, our Annual Recurring Revenue Assets witnessed healthy net flows of Rs 10,386 crore and ARR AUM stood at Rs 166,000 crore up 20% over last year. Our retentions remained healthy with wealth management retention at 56 bps, asset management retention at 83 bps and aggregate retention at 62 bps. Also, our cost to income in the current quarter has remained steady at approximately 45% as we continue to keep a sharp focus across all expense heads.
We strongly believe that India’s long-term inclusive growth story places the wealth management industry in sweet spot, strongly supported by increased momentum in Tier 2 cities, inter-generational wealth transfer and sustained monetization events. We are well-positioned to optimally leverage these trends and further lead the industry with our advisory proposition and leadership in alternative investments offerings. This quarter, our Tangible ROE has further improved to 29%. We are happy to report our fourth interim dividend of Rs 17 and remain committed to our dividend pay-out strategy, he added.
Meanwhile, the company’s board has approved sub‐division of each existing equity share of face value of Rs 2, into 2 equity shares of face value of Re 1 each fully paid up. The firm will complete the proposed sub‐division within 2 months from the date of this intimation i.e. on or before 18 March 2023.
The rationale behind the sub‐division is to encourage the participation of retail investors and enhance the liquidity in the capital market and to make the equity shares of the company more affordable for small investors, said the company.
The board has approved the bonus issue in the ratio of 1:1 (one bonus equity share for every 1 fully paid up equity share).
Further, the company’s board has also approved fourth interim dividend of Rs 17 per equity share for the financial year 2022-23. The record date for the same is fixed on Monday, 30 January 2023 and the dividend will be paid / dispatched on or before Saturday, 18 February 2023.
360 ONE WAM (formerly known as IIFL Wealth Management) 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.
Shares of IIFL Wealth Management declined 1.33% to Rs 1,912.85 on the BSE.
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