Prudent Corporate Advisory Services Limited Profits grew by 25% YoY & Flows from SIPs Reach Highest Ever in Q1FY23
AHMEDABAD, India, Aug. 2, 2022 /PRNewswire/ —
Key Result Highlights
- Equity AUM at Rs 43,618 crore, up by 43% YoY
- Revenue at Rs 128.3 crore, up by 43% YoY
- EBITDA at Rs 32.1 crore, up by 54% YoY
- EBITDA Margins higher by 180 bps YoY
- PAT at Rs 15.6 crore, up by 25% YoY
Assets Under Management
Despite headwinds on the marked to market (M2M), Equity AUM grew by 43% to Rs 43,618 crore led by strong net sales & Karvy’s acquisition. We strengthened our position in Equity AUM market share (Ex-ETFs) by 37 bps YoY to 2.30%.
Revenue
Revenues grew by 43% YoY to Rs 128.3 crore led by strong AUM growth in the mutual fund business & a higher equity mix in the overall AUM. Equity mix improved by 0.2% YoY to 93.1%.
EBITDA & Margins
Operating profit grew by 54% YoY to Rs 32.1 crore. Operating profit growth was higher than revenue growth led by operating leverage.
Profit After Tax
Profit After Tax grew by 25% YoY to Rs 19.4 crore. PAT growth was slower than operating profit growth mainly led by higher depreciation and lower other income. Depreciation increased 200% YoY led by amortization of Karvy assets we acquired as on November 2021.
SIPs
Gross flows from SIPs was the highest in company’s history at Rs 1,274 crore in Q1FY23. Monthly mobilization through SIPs stood at Rs 431 crore in the month of June 2022 implying a market share of 3.5%.
The next phase of the Company’s growth will continue to be fuelled by its strategy of empanelling more MFDs coupled with its strategy to focus on multi-product distribution platform.
Commenting on the results, Mr Sanjay Shah, Chairman and Managing Director, said, “The 1st Quarter of FY23 has been outstanding in revenue and profitability. We have been able to generate significant free cash flows consistently, aided by our organic and inorganic growth engines. In FY2022, we acquired Karvy’s Mutual Fund AUM, totalling Rs 8,093 crore. In July 22, we continued our inorganic expansion by signing a term sheet to acquire MF AUM of iFast Financial India Private Limited.”
Mr Sanjay Shah added, “It took us around 16 years to reach an AUM of Rs 10,000 crore, and less than six years to scale it up to Rs 50,000 crore. The inorganic opportunities coupled with strong cult towards mutual funds, give us good growth leeway to reach the Rs 1,00,000 crore AUM mark in the next four years.”
Mr Shirish Patel, CEO & Whole-time Director, commented on the results: “We have added liquiloans & small case to our platform in this quarter. We are continually adding new products to our platforms to diversify our revenue base and create multiple pillars of growth. Insurance is one such product vertical which is helping us in our diversification journey, forming ~8%+ of revenues. We expect to scale this vertical further through our strong network of more than 6,800 PoSPs.”
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 113 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 1070+ highly skilled professionals and 23,760+ 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 web site 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.
