Khaitan & Co has bumped up its revenues in the 2018-19 financial year by 20 to 25% to cross Rs 600 crores, according to several authoritative sources with knowledge of the figures.
We understand from sources that total revenues were between Rs 610 and 620 crores ($87m to $89m), in the financial year ending 31 March 2019.
In March 2018, Fortune magazine had reported that the firm had revenues “north of Rs 500 crore”, in its profile of managing partner Haigreve Khaitan, having ballooned from revenues of only Rs 11 crore in 2002.
Haigreve Khaitan declined to comment or confirm the figure when contacted.
As of 11 April 2018, Khaitan’s total partnership strength was 127, including 91 equity partners, which at Rs 615 crore revenues would translate to roughly:
- average revenues per partner of Rs 4.8 crores (around $685,000),
- average revenues per equity partner of Rs 6.8 crores (around $970,000),
- average revenues per fee-earner of Rs 1.1 crores (around $160,000).
These ratios are, of course, averages, so revenues earned by each partner and their team would vary.
Meanwhile, for equity partners, take-home profit distributions would vary year-by-year primarily on the basis of performance and amounts paid by way of retainer are primarily dependent on seniority.
At most large law firms, the majority of revenues would be spent on salaries paid to fee-earners (including equity partners), with an additional chunk going into fixed infrastructure costs and other expenses.
After the most recent partnership promotions, in April 2019, Khaitan’s total partnership headcount had increased to 152; however, the number of equity partners had remained steady at 91, after no equity elevations were made, unlike in previous years).
For a long time, Indian law firm revenue figures been closely guarded trade secrets, though several firms are now quite transparent internally within the partnership about their financials.
Globally, revenues of most firms are disclosed and reported, with the largest international law firms with dozens of global offices having revenues of more than $2bn in 2017-18, according to The Lawyer magazine.
If you know of any other Indian law firm revenue figures, please Contact Us and let us know, in strict confidence.
Photo by Sohel Patel
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In fact, I seriously doubt if people like Ashwath can reach where they have (no family connections in politics, business etc) at S&R, which for all it's positives, simply does not operate at the scale needed to have rainmakers (non-founders) running books of such size.
The real issue is in rate under-cutting and fixed fee mandates - that reduces the size of the pie for everyone. There's less to share and less to go around.
fixed fee (though sometimes discount). That's $1.2 million approx. For a third year associate. Let that sink in.
There are obviously firms that do fixed fee mandates and charge a lot less. But the 50 largest firms came together and cartelised in a way to agree to charge hourly, not do fixed fee and create a pay structure for associates that's uniform. That would be so much easier in India where it's 6-7 firms and they're all friendly. Indian firms are missing the woods for the trees if they think that by undercutting each other, creating pay wars and trying to outdo each other on fixed fees. It's a race to the bottom, not a race to the top.
1. Remuneration of Corporate PA (first year in Bombay/Delhi)
2. Remuneration of Corporate Partner (second year in Bombay/Delhi)
3. Remuneration of Corporate Partner with decent book (6-7 years of partnership experience in Delhi/Bombay)
Kindly give inputs only if you have credible info
Any knowledge on profit of all big firms will be better....
Technically one can have highest top line by offering discounted price....
What incentive/bonus do 1-4yr PQE Associates makes?
BTW, which law firm partner does not bloat and walk (they would believe they rather fly) two feet above the ground?
The trend, which is fairly recent, of making partners only on PQE basis has resulted in first rank idiots (who can only speak about wardrobes, international holidays ... and surely not law) being increasingly made partners. Guys this is a bubble where inherent capacities are not anymore the exclusive basis for partnership. No wonder these firms oppose foreign lawyers, afraid that it will remove their sham cloaks.
If 600 Cr is KCO’s turnover, AZB, SAM and CAM must be easily 800-900.
Damn time to get back to law firm life!
If CAM has a turnover of 800 and say half is cost, it means that CSS makes 200 + crores if he still owns half the firm?
Shardul runs a tight ship. My guess m: AZB most profitable followed by SAM. Highest revenue last year SAM for sure, followed by KCO. CAM got hit a lot last year and their costs were high because of acquisitions like Akila and loss of rainmakers like Percy.
This year, it’s too early to tell!
Sadly, that's not the case (yet?) in India.
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