Financial Services company Prudent Corporate Advisory Services announced FY23 results: Revenue from operations grew 36% YoY to Rs 611.3 crore, led by 33% growth in yearly average assets under management (AUM) in the mutual fund vertical coupled with insurance revenues almost doubling. Growth in AUM was led by robust Systematic Investment Plan (SIP) flows & acquisition of Karvy’s mutual fund folios. We ended March 2023 with a monthly SIP flow of Rs 517 crore, with almost a second rupee of gross inflow coming from SIP. As of 31 March 2023, our closing AUM surpassed the Rs 56,000 crore mark. Operating profits grew 51% YoY to Rs 173.3 crore, led by the benefits of operating leverage coupled with a larger share of insurance in overall revenue composition. Profit after tax grew by 45% YoY to Rs 116.7 crore Cash flow from operations (CFO) during the year stood at Rs 127 crore & CFO/Net Income stood at 109% indicating a healthy cash conversion. "Our FY23 results reflect the determined efforts of the entire Prudent team," said Sanjay Shah, Managing Director. “We achieved three key milestones during FY23. Firstly, our Mutual fund vertical crossed Rs 500 crore in revenues. Secondly, our cash flow from operations exceeded Rs 100 crore. And finally, our insurance vertical crossed 10% of the overall revenues. Historically, 52% of our AUM growth has been contributed by net sales & the balance 48% from Marked to Market (M2M) gains. Barring the covid hit years, our net sales number has been equal to or higher than our gross flow from SIPs. Annualizing the monthly SIP flow as of March-23 of Rs 517 crore, we expect gross flows from SIPs to exceed Rs 6,200 crore in FY24, which is 11% of the FY23 closing AUM. So, we are confident of generating 11% growth from net sales and expect the balance 10% to accrue from Marked to Market (M2M), enabling us to grow at an annualized rate of 20% over the longer run. This will help us reach the Rs 1 trillion AUM mark in the next three-four years. Additionally, a perusal of inorganic opportunities led by an investment book of Rs 142 crore coupled with healthy cash generation each year may help us reach this mark a bit earlier”, he added. CEO & Whole-time Director, Shirish Patel, added, “Our Mutual Fund Distributors (MFDs) are our key partners and pillar of strength for achieving these milestones. Each year, more MFDs are migrating to higher buckets of AUM. As of March 2023, we have 1,040 MFDs handling an AUM above Rs 10 crore, which was just 340 four years back. Today, the need of the hour is the availability of multi-products to fulfil the demand of clients & technology platforms to execute & service clients in a paperless manner. This, coupled with the rising compliance hassles, is leading to MFDs shifting to technology platforms. This trend is benefiting us immensely. Also, our wide range of product offerings is helping MFDs to meet all the requirements of their clients under a single platform. Revenues from products other than mutual fund distribution have grown at 41% CAGR FY20-23, with insurance leading the pack. Around 7,750 partners, or their family members, have become insurance selling Point of Sales Persons (POSPs), helping us improve our cross-selling capacity.” Result PDF