• New Clients Onboarded: Over 440 new clients with INR10-plus crores Wealth ARR AUM.
• Total ARR AUM: Increased to INR46,828 crores, up 23% year on year.
• Net Flows: Strong net flows at INR25,974 crores during the year, compared to INR16,136 crores in FY24.
• Wealth ARR Net Flows: INR22,334 crores, up 42% year on year.
• AMC Gross Flows: INR16,300 crores.
• ARR Revenues: Grew by 28.2% Y-o-Y to INR1,701 crores.
• Total Revenues: Up 35% Y-o-Y to INR2,652 crores for FY25.
• Total Costs: Increased by 27.3% Y-o-Y to INR1,218 crores in FY25.
• Cost-to-Income Ratio: Improved to 45.9% from 48.7% in FY24.
• Net Profit (PAT): Highest-ever annual PAT at INR1,015 crores, up 26.6% year on year.
• Tangible ROE: 24.3% in FY25 compared to 30.1% in FY24.
• UBS AG Stake: UBS AG to subscribe to warrants representing a 4.95% stake in 360 ONE WAM at INR1,030 per warrant.
• UBS India Wealth Management Business Integration: Adds approximately INR26,000 crores of active AUM and recurring non-lending revenues of INR45 crores to INR50 crores.
• B&K Securities Acquisition: Operating revenues at about INR65 crores to INR70 crores, with a full-year PAT of INR102 crores.

• Warning! GuruFocus has detected 7 Warning Signs with BOM:542772.

Release Date: April 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• 360 One Wam Ltd (BOM:542772) reported a 23% year-on-year increase in total ARR AUM, reaching INR46,828 crores.
• The company recorded its highest-ever annual PAT at INR1,015 crores, marking a 26.6% increase year-on-year.
• A strategic collaboration with UBS AG is expected to enhance global wealth management solutions and expand client offerings.
• The Board approved an interim dividend of INR6 per share for FY26, reflecting strong financial health.
• The cost-to-income ratio improved to 45.9% from 48.7% in FY24, indicating better operational efficiency.

Negative Points

• AMC AUM experienced a marginal reduction on a quarter-on-quarter basis due to negative market-to-market impacts.
• Tangible ROE decreased to 24.3% in FY25 from 30.1% in FY24, with expectations of improvement in future quarters.
• The company faced a net outflow of INR2,300-2,400 crores due to senior personnel attrition.
• The integration of UBS AG's India wealth management business involves a net consideration of INR307 crores, which may impact short-term financials.
• ESOP expenses have been higher than historical levels, affecting overall cost structure.

Q & A Highlights

Q: Could you elaborate on the exclusive arrangement with UBS? Does it mean only UBS Global assets would be available to domestic clients? A: Karan Bhagat, CEO, explained that the exclusive arrangement implies that UBS will be the exclusive partner for clients opening global bank accounts. Additionally, UBS will be used for external asset manager platforms overseas. However, asset management will operate on an open architecture basis, allowing access to the best global products, including UBS's offerings.

Q: What is the expected revenue opportunity from the UBS collaboration, aside from the INR26,000 crore AUM acquisition? A: Karan Bhagat stated that while the revenue contribution doesn't directly match the INR2,000 crores raised, there are significant synergies, such as inbound referrals, outbound product access, capturing clients' global wallet share, and better distribution of asset management products. The opportunity is large, but it's too early to quantify.

Q: Can you break down the INR26,000 crore AUM from the UBS acquisition into ARR and non-ARR AUM? A: Karan Bhagat mentioned that approximately 30-70% of the AUM is ARR. The focus is on leveraging the strong relationship managers and platform to increase yields from the current 25-30 basis points to closer to 75-80 basis points.

Q: How has the retention in wealth management improved to 80 basis points this quarter? A: Karan Bhagat noted that the improvement is due to stabilizing advisory fees and some carry items on both wealth and asset management sides. However, he advised looking at the average retention over the year rather than just Q4.

Q: What are the plans for the global business, especially with the UBS collaboration? A: Karan Bhagat confirmed that the collaboration with UBS will enhance global aspirations. The partnership will focus on leveraging UBS's expertise and infrastructure to expand global wealth management offerings.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.