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
Other Financial Services Company Prudent Corporate Advisory Services announced Q1FY24 results: Revenue from operations grew 29% YoY to Rs 165.4 crore, led by 22% growth in quarterly average assets under management (AUM) in the mutual fund vertical coupled with a doubling of insurance revenues. Growth in AUM was led by marked-to-market (M2M) gains as markets witnessed a strong broad-based rally in Q1FY24. We ended June 2023 with a monthly SIP flow of Rs 542 crore, with almost a second rupee of gross inflow coming from SIP. As of 30 June 2023, our closing AUM stood at Rs 63,057 crore. Profit after tax grew by 45% YoY to Rs 28.1 crore led by strong revenue growth & higher other income. Commenting on the results, Sanjay Shah, Managing Director of Prudent Group stated “Our story at Prudent is one of consistent growth and SIPs have been the unwavering compass guiding us through this journey. As we harness the power of SIPs, we are not just keeping pace with the industry but setting the pace as our market share in SIPs is almost 2.6x our market share in total AUM. We are witnessing a compelling trend in our incoming SIPs: the average value of new SIPs outpaces the existing book average by a significant 17-18%. As we move forward, we are cognizant of a significant insight: even within our clientele, 50% have not yet embraced SIPs. This untapped segment holds substantial promise for expansion. In the next three years, 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” The CEO & Whole-time Director, Shirish Patel, added, “Our Mutual Fund Distributors (MFDs) are our key partners and pillar of strength for achieving these robust results. As higher vintage MFDs increases in our system, we see a huge tailwind to business growth. FY23 marked a significant shift with 2,058 MFDs moving from the 2-5 year maturity bucket to the >=5 years category, further solidifying the experienced cohort. Further, our constant endeavor to add products to our platform is leading to advisors being able to fulfill all our client's requirements thus becoming a ‘Multi Product Distributor’ rather than just a ‘Mutual Fund Distribution’. Revenues from products other than mutual fund distribution have grown at 41% CAGR FY20-23, with insurance leading the pack. Around 8850 partners or their family members, have become insurance selling Point of Sales Persons (POSPs), helping us improve our cross-selling capacity.” Result PDF
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
Other financial services company Prudent Corporate Advisory Services announced Q3FY23 results: Q3FY23 & 9MFY23: Equity AUM on Dec 22 at Rs 52,593 crore, up by 18.1% YoY Revenue for 9MFY23 at Rs 434.4 crore, up by 35.2% YoY and for Q3FY23 at Rs 158.3 crore, up by 25.9% YoY EBITDA for 9MFY23 at Rs 114.8 crore, up by 41.0% YoY EBITDA Margins are higher by 109 bps for 9MFY23. PAT at Rs 75.5 crore for 9MFY23, up by 30.9% YoY and for Q3FY23 at Rs 28.5 crore, up by 27.8% YoY. Mr. Sanjay Shah, Chairman and Managing Director, commented on the results and said, "The 9 months of FY2023 and Q3FY23 has been another period where Prudent has witnessed substantial and consistent growth in revenue and profitability. Healthy cash flows enabled the acquisition of the Mutual Fund AUM of iFast Financial Pvt Ltd. This has been perennial part of our growth strategy, wherein we are focussed on both Organic as well as Inorganic growth". Talking about nine months ended of the current fiscal, Mr. Sanjay Shah added, "The first nine months of FY2023 has been promising, with revenue up by 35.2% to Rs 434.4 crore. At the same time, profit after tax (PAT) is up by 30.9% YoY to Rs 75.5 crore. We are steadily growing our market share, with more than 14.95 lakh clients under our belt as of December 2022. Along with profitability, our ability to generate strong free cash flows is bolstering our capacity to move forward rapidly and confidently. We anticipate a higher inflow of funds and a steady rise in our AUM in the upcoming quarters due to the economy's broad-based recovery. Our MF Assets are growing at double the rate of the industry on the back of our organic and inorganic strengths." CEO & Whole-time Director, Mr. Shirish Patel, commented: "We are delighted to see Prudent Corporate Advisory Services now get ranked as the second-largest non-banking Mutual Fund Distributor based on Commissions Earned, thanks to the efforts of our channel partners and our team. As per the CAMS December 2022 ranking, we are now the 3rd largest in total AUM in retail and 5th largest in total folios. Thanks to our highly scalable, asset-light, and cash generative business model, we have shown a consistent record of accomplishment in delivering profitable growth.” Result PDF
Prudent Corporate Advisory Services announced Q2FY23 results: Q2FY23 & H1FY23: Equity AUM at Rs.49,673 crore, up by 40.5% YoY Revenue for Q2FY23 at Rs.147.6 crore, up by 39.7% YoY; for H1FY23 Rs.276 crore, up by 41.2% YoY EBITDA at Rs.40.2 crore, up by 58.4% YoY EBITDA Margins are higher by 322 bps YoY at 27.2%. PAT at Rs.27.6 crore, up by 41.1% YoY; for H1FY23 Rs.47.0 crore, up by 33.9% YoY. Mr. Sanjay Shah, Chairman and Managing Director, commented on the results, and said, "The 2nd Quarter of FY2023 has been another quarter where Prudent has witnessed substantial growth in revenue and profitability. Healthy cash flows led to the acquisition of Mutual Fund AUM of Karvy Stock Broking Limited in an all-cash deal in FY2022. On July 22, we continued our inorganic expansion by signing a term sheet to acquire MF AUM of iFast Financial India Private Limited." Talking about the first half of the current fiscal, Mr. Sanjay Shah added, "The first half of FY2023 has been promising, with revenue up by 41.2% to Rs 276 crore. At the same time, profit after tax (PAT) is up by 33.9% YoY to Rs 47.0 crore. We are steadily growing our market share, with more than 14.58 lakh clients in September 2022. Along with profitability, the strength of our cash flow generation is bolstering our capacity to proliferate moving forward. We anticipate a higher inflow of funds and a steady rise in our AUM in the upcoming quarters due to the economy's broad-based recovery. Our MF Assets are growing at double the rate of the industry on the back of our organic and inorganic strength." CEO & Whole-time Director, Mr Shirish Patel, commented: "We are delighted to announce that Prudent Corporate Advisory Services has been ranked as the second-largest non-banking Mutual Fund Distributor based on Commissions Earned thanks to the efforts of our channel partners & our team. As per CAMS September 2022 ranking, we are the 3rd largest in total AUM in retail and 5th largest in total folios. We have shown a consistent track record of profitable growth due to a highly scalable, asset-light and cash-generative business model. The cost-to-income ratio has continuously decreased to 18.9% in 1HFY23 as compared to 21.0% in the same period a year ago despite the expansion in branches to 118 in FY23 and the employee count increasing to 1122." Result PDF