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Financial Services company Prudent Corporate Advisory Services announced FY24 results:
Financial Highlights:
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Revenue from operations grew 32% YoY to Rs 805.1 crore led by 32% growth in Yearly Average AUM in the mutual fund vertical coupled with a 50% growth in revenues from non-mutual fund products.
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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.
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Systematic Investment Plan (SIP) book grew by 40% YoY in the month of March & stood at Rs 726 crore. Our market share of SIP flow in the industry stood at 3.8% for March-2024.
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Operating profit grew by 11% YoY to Rs 193.1 crore. Operating profit growth was lower than revenue growth on the back of investments made to scale the insurance vertical.
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Profit after tax grew by 19% YoY to Rs 138.7 crore led by a strong operational growth & higher other income.
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The 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.
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Return on Equity stood at 28.8% for FY24.
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The Board of Directors has recommended a final dividend of Rs 2 per Equity Share. This dividend is on the face value of Rs 5 per share.
Commenting on the results, 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 stated “Our numbers are a testament to the enduring strength of our business model. Three Key Highlights from FY24 Results:
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Our Mutual Fund AUM crossed Rs 83,000 crore
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Our Consolidated Topline crossed Rs 800 crore
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Our Consolidated Profit After Tax crossed Rs 138 crore
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. We are confident in our strategy and our team, and look forward to continuing our growth trajectory”
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