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IIFL Wealth Q2 Review - RoE Expansion On Highest Profit; Annual Recurring Revenue Further Grows: Anand Rathi

IIFL Wealth Q2 Review - RoE Expansion On Highest Profit; Annual Recurring Revenue Further Grows: Anand Rathi

<div class="paragraphs"><p>A man holds a two thousand Indian rupee banknote for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg).</p></div>
A man holds a two thousand Indian rupee banknote for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg).

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

IIFL Wealth Management Ltd.'s Q2 FY22 net profit grew 63% YoY to Rs 1.4 billion (our estimate: Rs 1.2 billion) boosted by operating revenues rising 48% YoY, other income growing 37% YoY and the cost-to-income ratio slipping to 48% (54% a year ago).

We expect a 28% net profit compound annual growth rate over FY21-23 to Rs 6 billion (our earlier estimate: Rs 5.6 billion).

The return on equity expanded from ~12% a year ago to 19.4% at end-Q2 FY22. We expect a further rise to 23% by end-FY23.

Assets under management rose 37% YoY to Rs 2.57 trillion, surpassing our Rs 2.43 trillion estimate.

IIFL Wealth's share of annual recurring revenue assets in AUM rose from 42% a year ago to 51% at end Q2 FY22 (we estimate 55% by FY23).

Click on the attachment to read the full report:

Anand Rathi IIFL Wealth Manangement Q2FY22 Review and Company Update.pdf

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