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Prudent Corporate Advisory Q4 PAT rises 8% YoY to Rs 45 cr

07-May-24 10:28 Hrs IST

Profit before tax for the quarter was at Rs 59.78 crore, up 8.12% from Rs 55.29 crore reported in Q4 FY23.

Operating profit grew by 3.9% year on year to Rs 60.8 crore during the quarter. Operating margin reduced to 25.4% in Q4 FY24 as compared to 33.1% recorded in the corresponding quarter previous year.

For FY24, the company?s consolidated net profit stood at Rs 138.75 crore, up 18.91% on the back of strong operational growth & higher other income.

Revenue from operations jumped 31.69% YoY to Rs 805.09 crore in FY24, mainly due to 32% growth in yearly average AUM in the mutual fund vertical coupled with a 50% growth in revenues from non-mutual fund products.

Growth in AUM was largely led by marked to market (M2M) gains as markets witnessed a strong broad based rally during fiscal 2024. Closing AUM as of 31 March 2024 grew by 48% YoY to Rs 83,384 crore.

Systematic investment plan (SIP) book climbed 40% YoY in the month of March & stood at Rs 726 crore. The company?s market share of SIP flow in the industry stood at 3.8% for March 2024.

The firm said that its cash flow from operations (CFO) during FY24 stood at Rs 150 crore & CFO/PAT ratio stood at a 108%. Strong cash flow from operations will give firepower for inorganic acquisitions going forward. Return on equity stood at 28.8% for FY24.

Sanjay Shah, managing director of Prudent Group, stated, ?Gross Household Financial Savings is expected to double to Rs 62 trillion in the next six years. Within gross household financial savings, share of savings in the form of currency & deposits have gone down from 64% a decade back to now 45%. This share is getting captured by government savings scheme & investments in the form of mutual funds & direct equity. The ability of mutual funds to deliver inflation beating returns is getting well understood by retail. Prudent is making most of this opportunity. Industry?s Systematic Investment Plan (SIP) book has grown by almost Rs 50 billion in FY24, of which Prudent?s contribution is 2 billion leading to a 4% market share in the incremental SIP additions.

By March-2026, as we aim to achieve an AUM of Rs 1 lakh crore, 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.?

Shirish Patel, chief executive officer (CEO) of Prudent Group, said, ?As we reflect on the year, we added Rs 277 billion of Equity AUM. Of this, Rs 215 billion was contributed by marked to market movement. Our entire AUM as on 30 May 2020 was around 210 billion & the M2M of this year alone is equivalent to the entire AUM four years back. Net sales during the year was Rs 62 billion which is 25% higher compared to FY23 levels. Fiscal 2025 looks very promising as we are starting the year at a mutual fund AUM of Rs 834 billion which is 19% higher compared to the yearly average AUM of Rs 699 billion in FY24 on which we earned our revenues.?

Meanwhile, the company?s board has recommended a final dividend of Rs 2 per equity share for the financial year ended 31 March 2024.

Prudent Corporate Advisory Services 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. The company offers a technology enabled, comprehensive investment and financial services platform with end-to-end solutions critical for financial products distribution and presence across both online and offline channels.

The scrip rose 0.70% to currently trade at Rs 1,633.10 on the BSE.