Anand Rathi Wealth Ltd

It gives me great pleasure to present to you the performance of our Company for the financial year 2024–25. Building on the momentum of past years, this year has once again been marked by significant progress across key operational and financial parameters.

Our total revenue for the year stood at J981 Crores, representing a year-on-year growth of 30%, while profit after tax increased to J301 Crores, a rise of 33%. These achievements highlights the strength of our business model, the resilience of our teams, and the clarity with which we have executed our strategic priorities.

Our Assets Under Management (AUM) also saw robust growth during the year, rising from J59,351 Crores to J77,103 Crores, reflecting a sustained increase in client trust, improved strategic penetration, amidst volatile market performance.

In line with our commitment to shareholder value creation, I am pleased to report that we declared a final dividend

of 7 per share and distributed interim dividend of 7 per share during the year.

As part of our policy of rewarding our shareholders, we also announced a 1:1 bonus issue, reflecting our confidence in the company's future growth. The Board has now recommended the payment of the final dividend of 7 per share on the expanded post-bonus capital (equivalent to 14 per share on pre-bonus capital).

As we look ahead, our focus remains on delivering sustainable growth, investing in innovation and people, and maintaining the highest standards of governance and operational excellence. We are strengthening our ESG (Environmental, Social, and Governance) framework, integrating responsible practices to stay aligned with evolving industry best practices. On behalf of the Board, I thank all our stakeholders—employees, clients, and shareholders—for their unwavering support and continued belief in our journey.

The global economy in 2024 demonstrated remarkable resilience in the face of continued geopolitical tensions, monetary tightening, and structural vulnerabilities. According to the International Monetary Fund (IMF), global GDP growth stood at 3.2% in 2024, with a modest uptick projected to 3.3% in 2025—still below the pre-pandemic average of 3.7%. This tempered growth reflects a world economy gradually recalibrating after the pandemic-induced shocks, supply chain disruptions, and policy uncertainties.

Advanced economies recorded subdued growth, with the United States outperforming peers due to strong consumer spending and labour market resilience. The US is estimated to have grown by 2.8% in 2024, while the Eurozone lagged with 0.8% growth amid manufacturing headwinds and energy cost pressures. Japan saw near-zero growth, facing structural deflationary challenges, while the United Kingdom began showing signs of recovery, growing by 0.9%.

Emerging markets remained the mainstay of global growth. While China's growth slowed to 4.8%, reflecting weaknesses in real estate and consumer confidence, India emerged as the world's fastest-growing major economy, with growth estimated at 6.5% in both 2024 and 2025. Other key contributors included Indonesia and Brazil, supported by domestic demand and commodity exports.

Inflation pressures globally have begun to moderate. The IMF estimates that global inflation fell from 6.7% in 2023 to 5.7% in 2024, and expects it to ease further to 4.2% in 2025. Central banks have responded by adjusting policy rates cautiously. The US Federal Reserve and the European Central Bank initiated rate cuts in late 2024 to balance inflation control with growth imperatives, while the Bank of Japan signalled a landmark shift away from ultra-loose policies.

In financial markets, equity indices across developed markets delivered strong returns in 2024, led by a technology-driven rally in the US. However, volatility resurfaced in early 2025 due to inflationary stickiness, political uncertainty, and shifting trade dynamics, especially between the US and China. Debt markets have also seen rising yields, with global sovereign debt reaching a historic high of USD 102 trillion in 2024, prompting renewed concerns about fiscal sustainability.

India retained its position as a global growth engine, with real GDP growth revised upward to 9.2% for FY2023–24, driven by robust performance in manufacturing, services, and public investment. For FY2024–25, the government forecasts growth at 6.5%, reflecting moderation from a high base and the impact of external uncertainties.

Inflation remained within the RBI's comfort zone for much of the year, declining from 6.2% in October 2024 to 3.6% in February 2025, aided by food price stability and supply-side interventions. In February 2025, the RBI cut the repo rate by 25 bps to 6.25%, marking its first rate cut in five years, signalling a shift to a more accommodative stance to support growth amid tight liquidity conditions. It followed with a further 25 bps cut on 9th April 2025 Monetary Policy Committee and shifting its policy stance to accommodative.

The banking sector witnessed a moderation in credit and deposit growth. Credit growth slowed to 11.8% (y-o-y) as of December 2024, while deposit growth eased to 11%, impacting net interest margins. Rising bad debts and liquidity constraints prompted the RBI to inject USD 21 billion in liquidity and strengthen regulatory oversight, while continuing to advance its digital currency initiative—the Digital Rupee.

India's external sector faced mounting challenges. Merchandise exports remained flat while imports expanded faster, widening the trade deficit to USD 258.4 billion during April–Feb 2025. Services exports provided a cushion, recording 13.1% growth. The current account deficit narrowed to 1.1% of GDP in Q3, aided by remittances and robust services trade. However, foreign portfolio outflows of USD 25 billion, a depreciating rupee (INR 87.5/USD), and falling forex reserves posed pressure during last two quarters. However, the rupee has recovered, and the forex reserves have climbed up from their recent lows.

India's equity markets experienced relatively modest gains in 2024-25, with the Nifty 50 rising by 5.3%. While the first half of the last fiscal saw significant upside, markets corrected sharply in second half, with the Nifty 50 falling by 13% from its peak in September 2024, led by mid-cap and small-cap underperformance, weak earnings, and foreign capital outflows. Despite the correction, long-term fundamentals remain intact, supported by structural reforms, rising retail participation, and improving valuations.

The bond market reflected India's policy shift toward fiscal prudence, with the fiscal deficit target at 4.4% of GDP for FY2025–26. The RBI's rate cut and bond market liquidity measures led to softening yields, positioning debt markets for stability and enhanced corporate borrowing in the coming quarters.

The outlook for both the global and Indian economy in FY2025–26 is cautiously optimistic. While global growth is projected to stabilise around 3.3%, downside risks remain from geopolitical tensions, financial fragilities, and policy uncertainty. In this context, India is expected to remain among the fastest-growing major economies, supported by a robust domestic market, favourable demographics, policy tailwinds, and macroeconomic discipline. The challenge for India lies in sustaining this momentum amid global volatility. Revival of private investment, deeper integration with global value chains, fiscal consolidation, and continued focus on job creation and rural demand will be essential to achieving inclusive and sustained growth.

I believe that our business is likely to grow very well, and we are expanding our focus growth in Tier 2 and Tier 3 cities in the years to come.