Waterfield Advisors scale increases 58% in FY22 on strong economy

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Wealth management and management consultancy firm Waterfield Advisors reported a 58.4% growth in operating revenue to Rs 28.83 crore in the financial year ending March 2022, from Rs 18.2 crore in FY21, according to its annual financial statements with the Registrar of the Company (RoC).

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Consulting service fees have proven to be the vital source of income, as they have contributed over 93% of operating revenue. Collections jumped 47.8% to Rs 26.9 crore in FY22. The company also collected Rs 1.93 crore in management fee income in FY22. It It should be noted that revenue for this vertical was zero in the last fiscal year (FY21).

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The company run by Soumya Rajan helps its clients plan, structure and manage their family wealth on behalf of their family offices. According to its LinkedIn profile, the company works with a group of 70 families in India and manages assets worth over $3.5 billion (excluding holding developers). Waterfield is also looking to develop your business in Singapore, the United Kingdom, the United States and the Middle East.

On the expense side, benefits expenses emerged as the company’s largest cost center, accounting for nearly 76% of total expenses. This cost jumped by 46.4% to Rs 27 crore in FY22 from Rs 18.44 crore in FY21.

Waterfield Advisors
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The software subscription cost for the business remained stable in FY22 at Rs 1.98 crore. The Mumbai-based company’s legal/professional and rent fees increased by nearly 59% and 9% to Rs 1.91 crore and Rs 1.72 crore in FY22.

Marketing and promotion expenditure increased by 3.6X to Rs 84 lakh in FY22 from Rs 23 lakh in FY21. In total, the eleven-year-old company’s annual expenditure jumped 43.3% to Rs 35.57 crore in FY22 from Rs 24.83 crore in the year ending. in March 2021.

The growth in the scale of the business helped it control losses by 11.7% to Rs 5.44 crore in FY22 from Rs 6.16 crore in FY21. At unit level, the company spent Rs 1.23 to earn one rupee in operating income.

Waterfield Advisors
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As the scale skyrocketed, it helped the company improve its ratios. EBITDA margin and ROCE improved to -17.37% and -11.17% in FY22 from -31.65% and -41.07% in FY21.

In February, Waterfield Advisory raised $6 million in a Series B round with family offices, ultra high net worth individuals and existing investors. The company has shown a decent financial performance over the past fiscal year, with its scale jumping over 58%. It also managed to control losses, which indicates that the company could become profitable in the current financial year. However, Waterfield also raised capital at the end of last fiscal year and the company may prioritize FY23 growth over the economy.

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