Financial Services company Prudent Corporate Advisory Services announced Q1FY25 results: Revenue from operations grew 51% YoY to Rs 249.4 crore led by 52% growth in Quarterly Average AUM in the mutual fund vertical coupled with a 64% growth in revenues from non-mutual fund products. Growth in AUM was led by marked to market (M2M) gains as markets witnessed a strong broad based rally. Gains in AUM due to M2M impact in last twelve months was Rs 26,000 crore. On 26 July 2024, Prudent surpassed a key milestone in AUM of One Lakh crore. Systematic Investment Plan (SIP) book grew by 41% YoY in the month of June & stood at Rs 780 crore. Prudent’s market share of SIP flow in the industry stood at 3.7% for June-2024. Operating profit grew by 51% YoY to Rs 59.0 crore in-line with the revenue growth. Profit after tax grew by 57% YoY to Rs 44.2 crore led by a strong operational growth & higher other income due to gains in the treasury book. Commenting on the results, Sanjay Shah, Managing Director of Prudent Group stated “Our Assets Under Management (AUM) surpassed Rs 1 lakh crore on July 26, 2024, about a year and a half ahead of schedule, largely due to marked to market movements. It took us nearly eighteen years to reach Rs 20,000 crore, but the last Rs 20,000 crore was added in just six months. This achievement demonstrates that Mutual Fund Distributors see great value in partnering with Prudent because of our technology and on-ground support. Our next goal is to reach a SIP book of Rs 1000 crore by March 2025.” Shirish Patel, Chief Executive Officer (CEO) of Prudent Group stated “Our numbers are a testament to the enduring strength of our business model. Net equity sales were strong this quarter at Rs 2500 crore, making up almost 40% of our total net equity sales for FY24. This indicates that retail participation in mutual funds is strong. During this phase of Amrit Kaal, the mutual fund industry is expected to grow rapidly aided by a higher per capita income. Favourable economic conditions and supportive regulations will create significant growth opportunities for us.” Result PDF
Financial Services company Prudent Corporate Advisory Services announced FY24 results: Financial Highlights: Revenue from operations grew 32% YoY to Rs 805.1 crore led by 32% growth in Yearly Average AUM in the mutual fund vertical coupled with a 50% growth in revenues from non-mutual fund products. Growth in AUM was largely led by marked to market (M2M) gains as markets witnessed a strong broad based rally during Fiscal 2024. Closing AUM as of 31 March 2024 grew by 48% YoY to Rs 83,384 crore. Systematic Investment Plan (SIP) book grew by 40% YoY in the month of March & stood at Rs 726 crore. Our market share of SIP flow in the industry stood at 3.8% for March-2024. Operating profit grew by 11% YoY to Rs 193.1 crore. Operating profit growth was lower than revenue growth on the back of investments made to scale the insurance vertical. Profit after tax grew by 19% YoY to Rs 138.7 crore led by a strong operational growth & higher other income. The Cash Flow from Operations (CFO) during FY24 stood at Rs 150 crore & CFO/PAT ratio stood at a 108%. Strong Cash Flow from Operations will give firepower for inorganic acquisitions going forward. Return on Equity stood at 28.8% for FY24. The Board of Directors has recommended a final dividend of Rs 2 per Equity Share. This dividend is on the face value of Rs 5 per share. Commenting on the results, Sanjay Shah, Managing Director of Prudent Group stated “Gross Household Financial Savings is expected to double to Rs 62 trillion in the next six years. Within gross household financial savings, share of savings in the form of currency & deposits have gone down from 64% a decade back to now 45%. This share is getting captured by government savings scheme & investments in the form of mutual funds & direct equity. The ability of mutual funds to deliver inflation beating returns is getting well understood by retail. Prudent is making most of this opportunity. Industry’s Systematic Investment Plan (SIP) book has grown by almost Rs 50 billion in FY24, of which Prudent’s contribution is 2 billion leading to a 4% market share in the incremental SIP additions. By March-2026, as we aim to achieve an AUM of Rs 1 lakh crore, we foresee our monthly SIP inflow crossing the mark of Rs 1000 crore. With a robust performance track record and a promising economic backdrop, we are poised to continue our successful growth trajectory." Shirish Patel, Chief Executive Officer (CEO) of Prudent Group stated “Our numbers are a testament to the enduring strength of our business model. Three Key Highlights from FY24 Results: Our Mutual Fund AUM crossed Rs 83,000 crore Our Consolidated Topline crossed Rs 800 crore Our Consolidated Profit After Tax crossed Rs 138 crore As we reflect on the year, we added Rs 277 billion of Equity AUM. Of this, Rs 215 billion was contributed by Marked to Market movement. Our entire AUM as on 30 May 2020 was around 210 billion & the M2M of this year alone is equivalent to the entire AUM four years back. Net sales during the year was Rs 62 billion which is 25% higher compared to FY23 levels. Fiscal 2025 looks very promising as we are starting the year at a mutual fund AUM of Rs 834 billion which is 19% higher compared to the yearly average AUM of Rs 699 billion in FY24 on which we earned our revenues. We are confident in our strategy and our team, and look forward to continuing our growth trajectory” Result PDF
Conference Call with Prudent Corporate Advisory Services Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Financial Services company Prudent Corporate Advisory Services announced Q3FY24 results: Q3FY24 Total Revenue reached 209.9 crore, reflecting a significant YoY growth of 33% from 158.3 crore in Q3FY23. Operating Profit for Q3FY24 stood at 50.0 crore, showing an 18% YoY growth from 42.5 crore in Q3FY23. Profit After Tax (PAT) for Q3FY24 was 35.7 crore, indicating a robust YoY growth of 25% from 28.5 crore in Q3FY23. EPS in Q3FY24 was 8.62, showing a substantial YoY growth of 25% from 6.89 in Q3FY23. Closing AUM as of 31 December 2023 stood at Rs 77,774 crore. Systematic Investment Plan (SIP) book grew by 32% YoY in the month of December & stood at Rs 649 crore. Our market share of SIP flow in the industry stood at 3.7% Commenting on the results, Sanjay Shah, Managing Director of Prudent Group stated, “Mutual funds as an investment asset class is gaining popularity. This is not only visible in the rising number of unique mutual fund investors but also in the rising number of Systematic Investment Plan (SIP) number. In a span of a year, unique mutual fund investors have risen by 53 lakhs to 4.2 crore. The monthly SIP book has increased by Rs 40 billion in a year to Rs 176 billion in December. In this growing industry, distributors will play a vital role in guiding people to invest in mutual funds. Their role extends beyond mere investment facilitation; they aid clients in understanding their financial goals and risks, and in balancing asset and product allocation coupled with providing behavioural coaching. In this phase of Amrit Kaal wherein per capita income is set to grow 10x in the next twenty-five years, Prudent will have a huge growth leeway. By March 2026, as we aim to achieve an AUM of Rs 1 trillion, we foresee our monthly SIP inflow crossing the mark of Rs 1000 crore. With a robust performance track record and a promising economic backdrop, we are poised to continue our successful growth trajectory” Result PDF
Financial Services company Prudent Corporate Advisory Services announced Q2FY24 & H1FY24 results: Q2FY24: Quarterly Average AUM increased by 29%, reaching Rs 66,584 crore compared to Rs 51,630 crore in Q2FY23. Total Revenue rose by 29%, reaching Rs 190.0 crore in Q2FY24, up from Rs 147.6 crore in Q2FY23. Profit Before Tax reached Rs 40.6 crore in Q2FY24, marking a 10% increase from the Rs 37.0 crore reported in Q2FY23. Profit After Tax also exhibited a 10% increase, reaching Rs 30.4 crore in Q2FY24 compared to Rs 27.6 crore in Q2FY23. Earnings Per Share stood at Rs 7.35 in Q2FY24, showing a 10% growth from Rs 6.67 in Q2FY23. H1FY24: Revenue from operations grew 29% YoY to Rs 355.5 crore led by 27% growth in quarterly average assets under management (AUM) in the mutual fund vertical. Growth in AUM was led by marked to market (M2M) gains as markets witnessed a strong broad-based rally from April 2023 onwards. Our closing AUM as of 30 September stood at Rs 69,127 crore. Profit after tax grew by 25% YoY to Rs 58.5 crore led by a strong operational growth & higher other income. There was an on-off income about the reversal of impairment of Rs 2 crore in H1FY23. If we exclude this one-off, profits in H1FY24 have grown by 30%. We ended September 2023 with a monthly SIP flow of Rs 595 crore. Our market share of SIP flow in the industry stood at 3.7%. Commenting on the results, Sanjay Shah, Managing Director of Prudent Group stated, “We are uniquely placed in the wealth management space as we focus on the retail segment of India which is largely underserved. There are just 4 crore unique mutual fund investors in the country & this number is set to grow by leaps & bounds in this phase of Amrit Kaal wherein per capita income is set to grow 10x in the next twenty-five years. Over the years, it is well established that mutual funds as an asset class have delivered inflation-beating returns & this product will eat into the share of bank deposits slowly but surely. By March 2026, as we aim to achieve an AUM of Rs 1 trillion, we foresee our monthly SIP inflow crossing the mark of Rs 1000 crore. With a robust performance track record and a promising economic backdrop, we are poised to continue our successful growth trajectory” Result PDF