Financial Services company Prudent Corporate Advisory Services announced Q1FY25 results:
- Revenue from operations grew 51% YoY to Rs 249.4 crore led by 52% growth in Quarterly Average AUM in the mutual fund vertical coupled with a 64% growth in revenues from non-mutual fund products.
- Growth in AUM was led by marked to market (M2M) gains as markets witnessed a strong broad based rally. Gains in AUM due to M2M impact in last twelve months was Rs 26,000 crore. On 26 July 2024, Prudent surpassed a key milestone in AUM of One Lakh crore.
- Systematic Investment Plan (SIP) book grew by 41% YoY in the month of June & stood at Rs 780 crore. Prudent’s market share of SIP flow in the industry stood at 3.7% for June-2024.
- Operating profit grew by 51% YoY to Rs 59.0 crore in-line with the revenue growth.
- Profit after tax grew by 57% YoY to Rs 44.2 crore led by a strong operational growth & higher other income due to gains in the treasury book.
Commenting on the results, Sanjay Shah, Managing Director of Prudent Group stated “Our Assets Under Management (AUM) surpassed Rs 1 lakh crore on July 26, 2024, about a year and a half ahead of schedule, largely due to marked to market movements. It took us nearly eighteen years to reach Rs 20,000 crore, but the last Rs 20,000 crore was added in just six months. This achievement demonstrates that Mutual Fund Distributors see great value in partnering with Prudent because of our technology and on-ground support. Our next goal is to reach a SIP book of Rs 1000 crore by March 2025.”
Shirish Patel, Chief Executive Officer (CEO) of Prudent Group stated “Our numbers are a testament to the enduring strength of our business model. Net equity sales were strong this quarter at Rs 2500 crore, making up almost 40% of our total net equity sales for FY24. This indicates that retail participation in mutual funds is strong. During this phase of Amrit Kaal, the mutual fund industry is expected to grow rapidly aided by a higher per capita income. Favourable economic conditions and supportive regulations will create significant growth opportunities for us.”