In this blog, we will share our spotlight on IIFL Wealth Management Ltd.
IIFL Wealth Management Ltd. – Highlights
The shares of IIFL Wealth Management Ltd. was trading at Rs.1570.25, up by 13.37%, hitting a 52 week high of Rs.1640.00 in today’s trading session.
The share price of IIFL Wealth Management Ltd. has increased by 20.75% in last one week, while the benchmark index S&P BSE Sensex has increased by 3.67%.
The stock rallied on heavy volumes following the company’s release of a solid set of numbers for the fiscal quarter ended June 2021 (Q1FY22). Its consolidated profit after tax (PAT) increased by 42% year on year (YoY) to Rs 119 crore, owing to strong operational performance, while PAT increased by 16% sequentially.
Meanwhile, its revenue from operations was Rs 283 crore, up 7% quarter on quarter (QoQ) and 43% year on year (YoY). Total assets under management (AUM) increased 15% year on year to Rs 2.82 trillion.
Annual Recurring Revenues were Rs 192 Crs, up 20% QoQ and 51% year on year.
Profitability was driven by a 12% increase in net revenues due to both annual recurring revenue (ARR) and transactional/brokerage revenue (TBR), improved operating efficiency, and a 22.6 percent lower tax rate.
The company declared a special dividend of Rs 35 per share.
The quarter saw strong net inflows of Rs 14,300 crore (including corporate treasury inflows of Rs 5,200 crore), with ARR accounting for Rs 9,700 crore and TBR accounting for Rs 4,600 crore. The share of high yielding DPMS assets within IIFL ONE assets increased during the quarter.
The alternate asset management space continues to see a strong response to new products from institutions, family offices, and HNIs across a variety of strategies, including Listed Equity; Unlisted Equity; and Real Estate as well as Credit.
IIFL Wealth Management is one of India’s leading wealth management firms, serving as an investment and financial advisor to High Net Worth Individuals (HNI) and Ultra High Net Worth Individuals (UHNI) in India and around the world.
Disclaimer: This document and the process of identifying the potential of a company has been produced for only learning purposes. Since equity involves individual judgments, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector.