IIFL Wealth Q2 Results: PAT up 23% YoY, Dividend declared at ₹17 per share | Job Binary


IIFL Wealth Management Ltd has reported consolidated profit after tax (PAT). 173 cr in Q23, 23% higher than last year 140 cr in 2Q22 and up 8% QoQ 160 Cr in the first quarter of FY23. The company reported a 28% increase in net income 333 crs for the first half of 2023. The company’s operating profit before tax (OPBT) stood at 410 crs for H1FY 23, up 51% YoY and at OPBT 203 Cr in Q2FY23, up 2% QoQ and 44% YoY. amounted to tenge 405 cr in the September quarter, up 12% YoY and 10% QoQ and 774 crs for 1H23 up 16% YoY.

The company reported profit before tax (PBT). 226 Cr up 12% QoQ and 20% YoY vs 23 PBT for FY1 427 Cr, an increase of 26% over last year. The total cost of the company is reached 179 Cr in 2Q13, up 7% QoQ and 3% YoY. IIFL Wealth Management said its annual recurring revenue is flat 261 crs up 17% QoQ and 5% QoQ, and 508 cr for the 23rd half, up 23%. The company’s total AUM increased by 4.6% YoY and 6.4% QoQ 2,68,286 cr. It also continued to focus on ARR, with AUM growing 17.4% YoY and 8.5% QoQ. 154,965 cr. There were net inflows for the firm 6,104 crore (90% ARR) for the quarter and 12,183 million in the first half of 2023.

Mr. Karan Bhagat, MD & CEO, IIFL Wealth & Asset Management said, “Despite the weak global geopolitical and macro environment, our AUM witnessed healthy net inflows during the quarter along with a positive MTM impact. There were annual recurring income assets 155 K Crs up 17% YoY and 8% QoQ. This is primarily due to our efforts in creating and following an optimal asset diversification strategy, complemented by a strong process-based investment approach. This has helped our clients navigate the volatility of the current investment landscape.”

He continued: “The current quarter has seen more 6,100 cr of net new inflows and strong Profit After Tax (PAT). 173 crs, up 8% quarter on quarter. ARR revenues are stable 261 crs in the quarter, up 5% quarter-on-quarter and continuing to grow – over 68% of total operating income was recurring in nature. With wealth management storage at 54 bps, asset management storage at 79 bps and aggregate storage at 59 bps, our storage is consistent. Our cost of revenue for the current quarter has remained stable as we continue to focus on all costs.”

“The wealth management landscape is evolving rapidly as many factors are creating new opportunities for wealth managers. Some of the early trends we identified in terms of changing industry contours, intergenerational wealth transfers, and wealth growth in Tier 2 cities are now playing out. We are well positioned to capitalize on these trends and further lead the industry with our advisory offering. Additionally, our focus on alternative investments has positioned us well as clients increasingly seek to increase the risk-adjusted returns of their portfolios through strategies such as credit and multi-assets,” said Mr. Karan Bhagat.

“Our material ROE improved further to 28% this quarter. In addition, we are pleased to announce our third interim dividend 17 and follow our dividend payout strategy. In the near future, we are aware of global volatility that can provide both challenges and opportunities. We will continue to look for exciting new products and areas of opportunity while being relatively cautious in our approach. In addition, people and technology remain our key investment themes – we will continue to add new talent and deep expertise to the organization,” added Mr. Bhagat.

Third interim dividend of Rs. 17/ per share with a face value of Rs. 2 also announced that the firm has set the record date for the 2022-2023 financial year as Monday, October 31, 2022. Subject to any applicable taxes, the above interim dividend will be paid or distributed on or before Friday, November. 18, 2022

Shares of IIFL Wealth Management Ltd closed today 1,899.00 apiece, up 0.78% from its previous close 1884.35. The stock registered a total volume of 15,057 shares on Wednesday. On a YTD basis, the stock has gained 31.03% through 2022.

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