IIFL Wealth Management Q1 - Encouraging Earnings Quality; Improving Capital Efficiency: ICICI Securities
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ICICI Securities Report
IIFL Wealth and Asset Management Ltd.'s quality of earnings was encouraging, reaffirming our confidence on consistent earnings delivery.
Profit after tax growth of 16% QoQ/42% YoY to Rs 1.2 billion was well ahead of our expectations.
Heading towards business model change initiated in 2019, annual recurring revenue asset mix has improved from 40% to 50%.
Strong net flow of Rs91bn (excluding Rs 52 billion of corporate treasuries) supported 15% QoQ/61% YoY growth in ARR assets.
ARR revenue grew 20% QoQ/50% YoY, now constituting 68% of overall revenue.
Retention on ARR assets again settled above 70 basis points.
IIFL Wealth Management announced special dividend of Rs 35 per share with focus on improving capital efficiency.
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