by Vipul Das
A mid-size company with a market valuation of ₹15,799.81 Cr, 360 ONE WAM Limited operates in the financial services industry. The company, which provides specialised solutions in the sectors of wealth and asset management, is the foremost provider of financial services. The Board of Directors of the company has set a record date of March 2, 2023 for the purpose of determining the eligibility of shareholders eligible to receive equity shares upon sub-division and bonus issue. The company has announced a 1:1 bonus share and a 1:2 stock split.
360 ONE WAM said in a stock exchange filing that, the Board has approved sub-division of each existing equity share of face value of Rs. 2/-, into 2 equity shares of face value of Re. 1/- each fully paid up and issue of 1 bonus equity share of the company of face value Re. 1/- each, for every 1 fully paid up equity share of face value Re. 1/- each (i.e. as adjusted for sub-division of the equity shares of the Company).]
For the third quarter of fiscal year 23 and the nine months that ended, the company’s consolidated net profit was ₹180 crore, up 16% YoY and 4% QoQ, and ₹513 crore, up 24% YoY. Operating Profit Before Tax (PBT) for the quarter ended December 2022 was ₹229 Cr, up 47% YoY and 13% QoQ, and for the nine months ended, it was ₹639 Cr, up 50% YoY, said 360 ONE WAM in a stock exchange filing. The company’s revenue from operations reached ₹415 Cr in Q3FY23, up 10% YoY and 9% QoQ, and stood at ₹1,172 Cr up 20% YoY for the nine months that ended.
“Over the past decade, IIFLWAM has evolved into one of the best wealth management franchises in India. It has become one of the largest alternate asset managers, with unique product offerings. With IIFL ONE, the company is looking to change the way wealth management is offered in India by focusing on recurring revenue rather than the traditional approach of transaction-based revenue. Our EPS estimates for FY24/FY25 largely remain unchanged. Importantly, the FY24 net flows target of sourcing INR300-400b in ARR assets will be a key monitorable. We retain our BUY rating with a TP of INR2,300 (premised on 25x Sep’24E EPS),” said Motilal Oswal after Q3 earnings of 360 ONE WAM.
“360 ONE WAM (erstwhile IIFL Wealth & Asset Management) registered 4%/16% QoQ/YoY PAT growth in Q3FY23 to Rs1.80bn, delivering >23% RoE, broadly in line with I-Sec estimates. ARR asset revenue grew strongly at 6% QoQ to Rs2.76bn (67% of total revenue vs 64% in Q2FY23) driven by 7% ARR AUM growth. However, YoY build up was lower at 12% despite 20% growth in ARR AUM due to moderation in retention rates (70bps/74bps in Q3FY23/Q3FY22). Transactional revenue was up 14% QoQ, driving 9% QoQ growth in operating revenue to Rs4.2bn. Nonetheless, forex MTM loss of Rs50mn dragged revenue growth (just flat QoQ). Cost grew 4% QoQ (down 16% YoY) mainly due to higher spends on technology and rebranding (rebranded itself to ‘360 ONE’ to better represent its business). It has proposed a share split of 1:1 and bonus issue of 1:1. Dividend payout is proposed to continue at ~70-80% of PAT. Maintain BUY with an unchanged target price of Rs2,217 (24x FY24E PAT). Key risks: i) lower net flows and retentions, ii) higher cost,” said ICICI Securities.
On Friday, the shares of 360 ONE WAM closed on the NSE at ₹1,763.55 apiece, down by 1.23% from the previous close of ₹1,785.55. In the last 1 year the stock has fallen 8.89% and on a YTD basis it has fallen 9.57% so far in 2023. The stock touched a 52-week-high of ₹1,960.00 on (24-Jan-2023) and a 52-week-low of ₹1,235.80 on (20-Jun-2022). 360 ONE WAM reported a promoter shareholding of 22.03%, FIIs stake of 61.16%, DIIs stake of 2.18% and a public stake of 14.63% during Q3FY23.
Promoters’ holdings declined from 23.19% in the September 2022 quarter to 22.03% in the December 2022 quarter, while FII/FPI investors’ holdings rose from 23.01% in the Q2 FY 23 to 61.16% in the Q3 FY 23, the number of FII/FPI investors increased from 179 in the Q2 FY 23 to 194 in the Q3 FY 23, mutual funds’ holdings shrunk from 2.12% in the Q2 FY 23 to 1.20% in the Q3 FY23, whereas holdings of Institutional Investors grew from 26.06% in Q2FY23 to 63.34% in Q3FY23, as per Trendlyne.