360ONE - 360 ONE WAM LIMITED Share Price

Q1: "Has the growth come from the increase in the wallet side of existing clients or the newer clients who are putting in more flows?"

A1: The growth is a culmination of both aspects. Our recent net flows of about Rs 4,500-5,000 crores in asset management type were bolstered significantly by new clients, but it's also essential to note that existing clients have increased their wallet share. The ratio of new money to existing wallet enhancement is approximately 50:50 to 60:40.

Q2: "Any revised upward guidance for FY27?"

A2: Guidance naturally adjusts upward each year. We're targeting AUM growth of 22-24% and aim for net flows around 10-12% of closing AUM. These targets are consistent, but in absolute terms, we anticipate needing to work harder to achieve them due to the growth in opening AUM.

Q3: "Can you just share some reasons for this solid TBR revenue growth?"

A3: TBR revenue reflects improvements in brokerage and syndication from multiple asset classes, showing better earnings sustainability than before. Although Q-o-Q the number may have slightly dipped, qualitatively, the improved revenue generation methods enhance our predictability and quality.

Q4: "Do you think operating leverage will kick in, lowering the cost-to-income ratio?"

A4: Yes, we expect to improve operating leverage significantly. We aim for a cost-to-income ratio reduction of about 150-200 basis points in the medium term. Improvements will come from optimizing costs in new businesses and productivity gains across existing operations.

Q5: "Where can we see the retention metrics for Wealth and Asset Management?"

A5: Retentions are expected to remain stable, with Wealth Management retentions around 73-75 basis points and Asset Management between 70-75 basis points. Overall, positive flow trends should support these retention metrics moving forward as our client base strengthens.

Q6: "What is your expected capital allocation strategy for the next 18 months?"

A6: Our strategy remains unchanged. We will focus our capital on growing our NBFC business and the Alternates space, maintaining a dividend payout target of 45-70%. Our aim is to enhance ROE toward the mid-20s in the long term, while remaining prudent with expansion opportunities.

Q7: "What's the status on the UBS collaboration and its unit economics?"

A7: Our collaboration with UBS recently commenced, and while initial referral numbers can be expected from April, client product onboarding will take 6-8 weeks for regulatory approvals. The unit economics are structured on a market basis and will evolve as the partnership develops.

Q8: "How do you see revenue growth for the HNI segment looking ahead?"

A8: Revenue growth in the HNI segment will be gradual as we measure it based on AUM and net flows rather than immediate figures. While breakeven in 3-6 months is anticipated, we prioritize building meaningful client relationships before scaling aggressively.