Prudent Corporate Advisory Services Ltd Profits grew by 25% YoY

Key Result Highlights

- Equity AUM at ₹43,618 crore, up by 43% YoY
- Revenue at ₹128.3 crore, up by 43% YoY
- EBITDA at ₹32.1 crore, up by 54% YoY
- EBITDA Margins higher by 180 bps YoY
- PAT at ₹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 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 crores in 1QFY23. 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 fueled by its strategy of empaneling 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 ₹10,000 crore, and less than six years to scale it up to ₹50,000 crore. The in-organic opportunities coupled with strong cult towards mutual funds, give us good growth leeway to reach the Rs 1,00,000 crore AUM mark in next four years."

Mr Shirish Patel, CEO & Whole-time Director, commented on the results: "We have added liqui loans & smallcase 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."

Shares of Prudent Corporate Advisory Services Limited was last trading in BSE at Rs. 548.40 as compared to the previous close of Rs. 542.00. The total number of shares traded during the day was 2466 in over 483 trades.

The stock hit an intraday high of Rs. 557.55 and intraday low of 540.45. The net turnover during the day was Rs. 1350879.00.

Source : Equity Bulls

Keywords

PrudentCorporateAdvisoryServices FinancialProductsDistributor INE00F201020 Q1FY23 ResultUpdate