What have been the growth triggers for Q2?
Anand Rathi: As you have seen, our growth in this last quarter, in terms of revenue has grown by 32% to almost 250 crores now and profitability has also increased by 32% and reached 76 crores. The total revenue in the six months, the half year we have completed, has also gone up by 35% and so is the pat for six months has gone up by 35%. Importantly, our AUM, on which our revenues are quite linked, has gone up from 48,000 crores to 75,000 crores, recording a growth of almost 57%.
So, the key drivers have been increased in number of clients, increased per client AUM, increase in overall AUM, and increase in the relationship managers, the team size. So, all these factors have contributed to the growth which we have been able to achieve in the last quarter.
What is the strategic growth map then for the next two to three years?
Anand Rathi: We have gone public three years back. And if you have seen less than three years, we have consistently grown around 30% or more than 30% every quarter and our belief is that going ahead our growth is going to be at least 20% to 25%. We will try to achieve more, but at least I would say that 20% to 25% growth, barring any unforeseen circumstances, is easily achievable.
And at what rate do you see the wealth management industry growing? Just curious to understand your take over the next three to five years, what is your projection?
Anand Rathi: I think the wealth management as a such total AUM, we think is growing by 15% to 20% year after year. The number of clients are also increasing more than 10% to 12% year after year. And therefore, the total size of business is growing very fast. Because one, the number of wealthy clients are increasing. Number two, number of wealthy clients who are not doing proper wealth management are coming to this sector and therefore, the total growth in terms of the investable wealth is going to be at least 10% to 12% higher year after year and therefore, there is a great scope for us to increase our growth, acquiring new clients and increasing the wallet share of the existing clients.
And have the recent changes in the FO business impacted the company?
Anand Rathi: We are wealth management company, we do not advise our clients to do F&O at all, nor we get it done. So, actually, we do not have any revenue linked to F&O at all. And therefore, as far as we are concerned, there will be no effect, zero effect of what happens to the F&O market whether volumes go down, anything happening is not going to affect the wealth management business which we have in this company is at all going to be affected.