Prudent Corporate Advisory Services Limited AUM crosses the landmark Rs 50,000 crores in Q2FY23, Records highest ever revenue & profits in H1FY23
AHMEDABAD, India , Nov. 8, 2022 /PRNewswire/ —
Key Result Highlights of Q2FY23 & H1FY23
- Equity AUM at ₹49,673 crore, up by 40.5% YoY
- Revenue for Q2FY23 at ₹147.6 crore, up by 39.7% YoY; for H1FY23 ₹276 crore, up by 41.2% YoY
- EBITDA at ₹40.2 crore, up by 58.4% YoY
- EBITDA Margins higher by 322 bps YoY at 27.2%.
- PAT at ₹27.6 crore, up by 41.1% YoY; for H1FY23 ₹47.0 crore, up by 33.9% YoY.
Assets Under Management
Equity AUM grew by 40.5% to ₹49,673 crore, led by strong net sales & acquisition of MF assets of Karvy. Prudent strengthened their position in Equity AUM market share (Ex-ETFs) by 42 bps YoY to 2.36%.
Revenue
Revenues grew by 39.7% YoY to ₹147.6 crore in Q2FY23, led by strong AUM growth in the mutual fund business & 80% year-on-year growth in the emerging insurance segment. The equity mix in overall AUM improved by 343 bps to 94.1% YoY which aided growth in total revenue. In H1FY2023, revenue is up by 41.2% to ₹276 crore.
EBITDA & Margins
Operating profit grew by 58.4% YoY to ₹40.2 crore. Operating profit growth was higher than revenue growth led by operating leverage.
Profit After Tax
Profit After Tax (PAT) grew by 41.1% YoY to ₹27.6 crore. PAT growth was lower than operating profit growth, led by higher depreciation due to the amortisation of payment for acquiring MF Assets of Karvy in November 2021 & lower other income. In H1FY2023, PAT is up by 33.9% YoY to ₹47.0 crore.
SIPs
Gross flows from SIPs were the highest in the Company’s history at ₹1,324 crore in Q2FY23. Monthly SIPs flow as of September 2022 stood at ₹ 456 crore, and the Company’s market share increased from 3.0% in September-2021 to 3.5% in September-2022. Given the strong traction on SIPs, Prudent expects gross flow from SIPs of ₹ 5200 crore in FY23, which is 13% of the FY23 opening AUM, providing them a strong visibility of growth.
The next phase of the Company’s growth will continue to be fuelled by its strategy of empanelling more MFDs and its plan to focus on a multi-product distribution platform.
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 ₹276 crore. At the same time, profit after tax (PAT) is up by 33.9% YoY to ₹ 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 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 H1FY23 as compared to 21.0% in same period a year ago despite the expansion in branches to 118 in FY23 and employee count increasing to 1122.”
About Prudent Corporate Advisory Services Limited
Prudent Corporate Advisory Services Limited (NSE: PRUDENT) (BSE: 543527) Prudent Corporate Advisory Services Limited (Prudent) is a retail wealth management services group based in India. The Company is among the top mutual fund distributors regarding assets under management (“AUM”) and commission received. With its unique business-to-business-to-consumer (“B2B2C”) business model and through its technology-enabled, comprehensive investment and financial services platform, Prudent provides end-to-end solutions critical for financial products distribution to individuals, corporates, high net worth individuals (HNIs), and ultra HNIs in India. The Company works through 118 locations in over 20 states and has a robust digital presence. It has evolved into a leading and respected distributor of mutual funds, insurance products, stockbroking, portfolio management schemes, unlisted securities, bonds/fixed deposits, alternative investment funds, and national pension schemes. Today, with a team strength of 1122 highly skilled professionals and 26,350 well-trained and qualified channel partners, Prudent is one of India’s fastest-growing financial services Group. Prudent Corporate Advisory Services Limited was founded in 2003 and is headquartered in Ahmedabad, India. For more information, please visit our website www.prudentcorporate.com.
Forward-Looking Statement:
Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Prudent Corporate Advisory Services Ltd will not be responsible for any action based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
