Total expenses rose 10.36% year-on-year to Rs 372.74 crore in Q3 December 2021. Employee expenses jumped 56.90% to Rs 168.57 crore during the period under review. From FY 23 onwards, the company expects the overall employee cost to stabilize around 32-33% of total revenues.

Revenue from wealth management business rose 15.81% to Rs 449.46 crore and revenue from asset management business jumped 56.20% to Rs 121.15 crore in Q3 December 2021 over Q3 December 2020.

In its guidance, the company said it expects strong momentum going into FY23 with AUM expected to sustain growth at 17-20%, with Recurring Revenue (ARR) assets expected to grow faster at 25-30% YoY. PAT is expected to grow at 20%+ YoY, reaching Rs 700 crore in FY23 and Rs 840 crore in FY24.

Karan Bhagat, MD & CEO, IIFL Wealth & Asset Management said, "Overall sentiment continues to remain upbeat, with allocations towards risk assets still increasing, albeit at a slower rate. However, global macro-economic factors and geo-political events need to be closely monitored. Our clients continue to maintain a steady balance on asset allocation across portfolios.

It has been another outstanding quarter for us, with Total Assets touching Rs 328k Crs. up 41% YoY and Annual Recurring Assets increasing 54% YoY to reach Rs 139k Crs.

Net Flows continue to grow steadily with Rs 6.3k Crs. in Q3 FY22 and Rs ~24k Crs. in 9M FY22, which is well ahead of our guidance for the year. Overall retentions continue to be steady, with retentions on Recurring Revenue assets at over 70bps, this quarter has also seen increased transactional revenues driven primarily by market opportunities.

Our Alternate Asset Management business continues to grow at a rapid pace, adding new Institutional mandates and launching niche offerings, along with exceptional performance in existing strategies.

Tangible ROE is now at a very healthy 27%. We remain focused on clients and product innovation, maintaining strong agility for market opportunities and developments. People and technology / digital continue to be significant investment areas and we are excited by the roadmap for next 12-24 months."

IIFL Wealth is a private wealth management firm in India. It serves the needs of high net worth and ultra-high net worth individuals, affluent families, family offices and institutional clients through a comprehensive range of tailored wealth management solutions.