Financial Services company Prudent Corporate Advisory Services announced Q2FY24 & H1FY24 results:
- Quarterly Average AUM increased by 29%, reaching Rs 66,584 crore compared to Rs 51,630 crore in Q2FY23.
- Total Revenue rose by 29%, reaching Rs 190.0 crore in Q2FY24, up from Rs 147.6 crore in Q2FY23.
- Profit Before Tax reached Rs 40.6 crore in Q2FY24, marking a 10% increase from the Rs 37.0 crore reported in Q2FY23.
- Profit After Tax also exhibited a 10% increase, reaching Rs 30.4 crore in Q2FY24 compared to Rs 27.6 crore in Q2FY23.
- Earnings Per Share stood at Rs 7.35 in Q2FY24, showing a 10% growth from Rs 6.67 in Q2FY23.
- Revenue from operations grew 29% YoY to Rs 355.5 crore led by 27% growth in quarterly average assets under management (AUM) in the mutual fund vertical.
- Growth in AUM was led by marked to market (M2M) gains as markets witnessed a strong broad-based rally from April 2023 onwards. Our closing AUM as of 30 September stood at Rs 69,127 crore.
- Profit after tax grew by 25% YoY to Rs 58.5 crore led by a strong operational growth & higher other income. There was an on-off income about the reversal of impairment of Rs 2 crore in H1FY23. If we exclude this one-off, profits in H1FY24 have grown by 30%.
- We ended September 2023 with a monthly SIP flow of Rs 595 crore. Our market share of SIP flow in the industry stood at 3.7%.
Commenting on the results, Sanjay Shah, Managing Director of Prudent Group stated, “We are uniquely placed in the wealth management space as we focus on the retail segment of India which is largely underserved. There are just 4 crore unique mutual fund investors in the country & this number is set to grow by leaps & bounds in this phase of Amrit Kaal wherein per capita income is set to grow 10x in the next twenty-five years. Over the years, it is well established that mutual funds as an asset class have delivered inflation-beating returns & this product will eat into the share of bank deposits slowly but surely. By March 2026, as we aim to achieve an AUM of Rs 1 trillion, 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”