Nuvama Wealth Management

“Full year basis, last year was around 66%. I think we will be lower than that this year.”

“Revenue from MPIS grew by about 20% year-on-year. Net new money, one of the highest quarters ever. We crossed INR3,000 crores in this.”

“And overall assets also increased about 32% year-on-year hitting INR42,500 crores.”

“we have seen more than 25% jump per RM year-on-year and overall revenue jump of about 17% per RM year-on-year.”

“The book has now crossed INR5,000 crores, lending book and NII growth was also about 12% Q-on-Q. It remains at about 20-22% of our overall revenues in this business.”

“Full year basis, the ARR assets grew by about 20% to INR58,000 crores and net new money into managed accounts continue to remain strong at about INR1,800 crores.”

“I think one of the interesting observations which we are seeing that Tier 2 and beyond is expanding faster. I think now it has started contributing to more than 35% and growing even in the MPIS segment.”

“And our view is that over a 3-4-year period, you will see maybe around 15-20% allocation sitting in a lot of client portfolios, which are offshore assets.”

“The total number of IPOs, which we saw in Q1 were 8 as compared to 15 in Q4 and maybe 14-15 last year. And even the total amount of fundraise fell by around 60-65%, both against Q4 and last year Q1.”

“And there is a lot of pent-up demand. A lot of documents have been filed. So I think the balance 9 months, hopefully, we should see better activity there.”

“So maybe in the next 2 quarters, the proportion of equity may go up.”

“Right now, our cost run rate is between INR30 crores to INR33 crores a quarter. Our assessment is that it will peak at INR35 crores to INR36 crores a quarter.”

“On the cost side, you will see that the quarter 1 cost has gone up by 19% and within that employee cost has increased by 17% and opex is up by 24%.”

“we have added almost 5% net capacity, net people over the last 1 year. And we have actually replaced our low-cost wealth RM with more senior experienced RMs.”

“There’s one more update on the opex side, which I would like to highlight is that we are looking for our new office because our current lease is coming for renewal.”

“You would have noticed that wealth C/I has dropped by 160 basis points.”

“Along with that, CRISIL has also upgraded our rating from AA- to AA stable.”

“Our overall borrowing has about 25%, which is the MLD on which we keep hedging. On a full year basis, we are able to save around 50 basis of cost.”

“We've launched an offering here for the super ultra HNI called Pinnacle.”

“And the target is to deploy about 70% of the AUM in the next maybe 2-3 months so that by end of Q3, we can launch the second fund, which we want to have around INR4,000 to INR5,000 crores again, slightly different strategy from the current one, but in the same space.”

“And then eventually, over the next 24 months, we are contemplating of looking at building a REIT platform because many of these assets, which we are acquiring are real marquee assets and there is no point of selling it out completely.”

“I think it may take another 2-2.5 months to have a basic level of team in place. And then again, middle to end of quarter 3, we will see the launch of our first private credit fund.”

“And we have got the SEBI Mutual Fund approval as well as we have applied for our SIF license.”

“Right now, it's gone to shareholders for approval. It's not actually ESOP, its stock appreciation rights, so ESARs”

“If the stock price appreciates by 20% every year for the next 5 years and people exercise 1 year after they're vesting against the 7.5% pool, our dilution will be 3%, so less than half.”

“I think there is some amount of, I would say, income which may not be repeatable in the coming quarters, maybe about INR15-INR20 crores, which we benefited in Q1.”

“This was because there was an opportunity, when on 7th of June the government made G-Sec interest income as well as capital gain tax-free and also announced no withholding tax.”

“So there are a few seasonal expenses which comes in this quarter. They will be towards the marketing expenses and business promotion expenses. That will be around INR10 crores to INR12 crores.”

“It's a heightened level of activity, and you may see a compression of some INR10-INR15 crores in the coming quarters.”

“I think I mentioned last time that this segment is seeing some intense competition. It's not that it was not there earlier, but I think it's become more heightened now.”

“I think there, we've seen some amount of volatility given the performance and also due to the launch of SIF’s, which is clearly a more superior tax vehicle. We've seen some redemptions in our absolute return fund and our long-short fund.”

“We've seen the numbers. We've ran through the numbers. At least we don't feel that there's going to be a very, very significant impact, but we'll closely monitor on that.”

“But I think the other measures which they have mentioned, that can have more impact for both our businesses, which is allowing for to-be-listed securities to be incorporated that makes PMS come at par with MF and AIF allowing for overseas investments to be made as part of PMS.”

“Yes, we don't have offshore fundraise capability if somebody wants to raise a bond overseas or stuff like that there”

“Client assets crossed INR5 lakh crores. Our quarterly revenues crossed INR900 crores, and our quarterly PAT crossed INR300 crores, an all-time high for us.”

“We are investing around it. We are investing heavily.”

“We added ~40 more net relationship managers in that cohort this quarter.”

“We have done a POC with about 200 people, and we'll roll out to the full team very soon.”

“Against this backdrop, we are happy to state that we’ve added about 11% of our force in the last 1 year, and we've added about 6 to 8 RMs in the last quarter.”