AHMEDABAD, India, Jan. 24, 2023 /PRNewswire/ -- Prudent Corporate Advisory Services Limited (Prudent), a Gujarat-based independent retail wealth management services group engaged in distributing a wide range of financial products, announced its financial results for the quarter and nine months ended on 31st December 2022.
Key Result Highlights of Q3FY23 & 9MFY23
- Equity AUM on Dec-22 at ₹52,593 crore, up by 18.1% YoY
- Revenue for 9MFY23 at ₹434.4 crore, up by 35.2% YoY; for Q3FY23 ₹158.3 crore, up by 25.9% YoY
- EBITDA for 9MFY23 at ₹114.8 crore, up by 41.0% YoY
- EBITDA Margins are higher by 109 bps for 9MFY23
- PAT at ₹75.5 crore for 9M FY23, up by 30.9% YoY; for Q3FY23, ₹28.5 crore, up by 26.3% YoY
Assets Under Management
Equity AUM grew by 18.1% YoY to ₹52,593 crore, led by consistent growth in organic net sales. The Company strengthened its position by adding 3,363 MFDs in 9MFY23, comfortably placed to achieve its set target of 5,000 MFDs which will provide further thrust to the AUM.
Revenue
Revenues grew by 35.2 % YoY to ₹434.4 crore in 9MFY23, led by strong AUM growth in the mutual fund business and a 54% YoY growth in the emerging insurance segment. In Q3FY23, revenue grew by 25.9% YoY to ₹158.9 crore.
EBITDA & Margins
EBITDA for 9MFY23 grew by 41.0% YoY to ₹114.8 crore. EBITDA has been growing consistently, thanks to the improved operating leverage achieved by the Company. As a result EBITDA margins for 9MFY23 stood at 26.4%; higher by 109 bps YoY
Profit After Tax
Profit After Tax (PAT) for 9MFY23 grew by 30.9% YoY to ₹75.5 crore. PAT grew in line with higher revenue. However, amortisations made on account of payment for acquiring MF assets of Kary led to Flat PAT margins YoY. Though, Cash PAT maintained its healthy growth rate, and grew by 41% YoY.
SIPs
Gross flows from SIPs were the highest seen in any Quarter in the Company's history at ₹1,411 crore in Q3FY23. Monthly SIPs flow as of December 2022 stood at ₹478 crore, and the Company's market share further increased by 20 bps from 3.3% in December 2021 to 3.5% by 31st December 2022. Prudent is all set to cross a monthly SIP flow of ₹500 crore in this fiscal itself & this provides the company with clear visibility for harnessing consistent and steady growth.
The next phase of the Company's growth will continue to be fuelled by its strategy of empanelling a greater number of MFDs and its plan to leverage the diversity of a multi-product distribution platform.
Mr Sanjay Shah, Chairman and Managing Director, commented on the results, and said, "The 9 months of FY2023 and Q3 of FY23 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 for the current fiscal, Mr Sanjay Shah added, "The first nine months of FY2023 have been promising, with revenue up by 35.2% to ₹434.4 crore. At the same time, profit after tax (PAT) is up by 30.9% YoY to ₹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. It's heartening to see our cost-to-income ratio continuously decrease, now at 18.5% for the 9MFY23 period. We have achieved this commendable feat despite expanding our branch count to 121 in FY2023 and increasing our employee count to 1,134."
About 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 Groups. 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.
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