Prudent Corporate Advisory Services Limited · NSE:PRUDENT

Prudent Corporate Advisory Services — Q1 FY2025 Earnings Presentation

48 slides from Prudent Corporate Advisory Services's earnings presentation, Aug 8, 2024

  1. Slide 1: Cover letter to stock exchanges

    Date: 08th August, 2024 To, To, The National Stock Exchange of BSE Limited, India Ltd, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Bandra – Kurla Complex, Mumbai- 400 001 Bandra (E), SCRIPT CODE: 543527 Mumbai – 400 051 NSE EQUITY SYMBOL: PRUDENT ISIN: INE00F201020 Dear Sir/Madam, Sub.:

  2. Slide 2: Investor Presentation

    PLuge_n[ — Money through wisdom — A diversified play in wealth management Investor Presentation Certified DEC 2023 - DEC 202 INDIA-

  3. Slide 3: Disclaimer

    DISCLAIMER The data mentioned in the presentation provided for general information purpose only. The information contained in the presentation is accurate only as of the date it was originally issued. The figures mentioned in the data are rounded off. Prudent Corporate Advisory Services Ltd(“Prudent

  4. Slide 4: About Prudent Corporate Advisory Services

    N About Prudent Corporate Advisory Services Founded in 2003 & headquartered in Ahmedabad, Prudent Corporate Vision Advisory Services is one of India’s fastest-growing financial services To be the most preferred group in financial services group. catering to the masses with the help of technology. To

  5. Slide 5: Key Management Leadership Team

    Lo N Key Management Leadership Team Sanjay Shah Chairman & Managing Director Shirish Patel CEO & Whole-time Director Chirag Shah Whole-time Director 2 Chirag Kothari Chief Financial Officer Chartered Accountant with MBA in Finance & diploma in Fellow member of Institute of Qualified company secretar

  6. Slide 6: Key Management Board Members

    Lo o N Key Management Board Members Dhiraj Poddar (Non Executive Director*) Deepak Sood (Independent Director) Karan Kailash Datta (Independent Director) Shilpi Thapar (Independent Director) 2 Aniket Talati (Independent Director) Serving as Country Head - Fellow of Insurance Institute With 10 years

  7. Slide 7: Our Journey so far

    N Our Journey so far First ?‘I 00 bn in 16 years Next ?900 bn in around 8 years Last ?200 bn added in just 6 Months * Current AUM* - 1000 bn ® Launched Smallcase, P2P Products & Sovereign Gold = AUM - 300 bn Bond ® 2019 - Launched Prudent " Listed on BSE & NSE = AUM - 200 bn Private Wealth ® Acquire

  8. Slide 8: Investor Presentation Q1FY2025

    — Money through wisdom — Investor Presentation | Q1FY2025 A diversified play in wealth management 7

  9. Slide 9: Play on distribution of financial products

    ‘ Play on distribution of > NATURE OF REVENUE REVENUE- FREQUENCY ¥ Distribution of - LK Mutual Fund Products Commission from AMC Distribution of Commission from [ Insurance Products Insurance companies CORPORATE 4 w [a) 2 [+ 4 o Other - Stock Brokerage/ Fee from _ Broking Retail/Institution * Other

  10. Slide 10: Mutual Fund Distribution - A Dominant Pie of the Services

    N Mutual Fund Distribution- A Dominant Pie of the Services Mutual Funds Distribution InZ Crs The company follows an “open-source” distribution model, under 96.2% which it distributes mutual funds of AMCs irrespective of their affiliation or size thus providing their MFDs/Clients with a large w— Tota

  11. Slide 11: Other Financial Products - Insurance Leads the pack

    Other Financial Products- Insurance Leads the pack X incrore Insurance Distribution @ Gennext- a wholly owned subsidiary is registered as an insurance broker for life ® Other Financial Products 166.2 o and general insurance with IRDAL It distributes insurance products offered by u Stock Broking vari

  12. Slide 12: Diversification: Creating a Second Pillar of Growth

    ‘ Diversification: “Creating a Second Pillar of Growth” FY20 FY24 Increasing share of Insurance products from 7% in FY20 to = MF Products 13.8%in FY24 = MF Products N M Insurance Products D OO 20020000004 M Insurance Products B Stock Broking ® Others ® Others Diversification has led to: A diversifie

  13. Slide 13: Investor Presentation Q1FY2025

    — Money through wisdom — Investor Presentation [Q1FY2025 A diversified play in wealth management 12

  14. Slide 14: Delivering Sustained Performance

    N Delivering Sustained Performance A Strong Platform + A complete Eco System = A sustainable roadmap Unique B2B2C business model bridging the gap a0 between AMCs, MFDs and S5 Long Lasting retail customers relationship with A growing & . underpenetrated MF MFD's flflflflfl industry @? Technology Geographi

  15. Slide 15: Future of MF Industry

    Future of MF Industry = Gross Houseold Financial Savings =@ Gross Houseold Financial Savings as a % to GDP 10.9% DIO>2222020)>4 India's Gross Household Savings are anticipated to FY13 FY23 FY30E increase alongside GDP growth, and the proportion of these savings invested in equities and mutual funds

  16. Slide 16: Industry on an Upturn... But Long Runway Left

    N Industry on an Upturn... But Long Runway Left 18% 33.7 11% 22.8 - I [ 1 20I8 FY13 FY17 FY24 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 61% 19271 44% 46% 3122 Mar-14 Mar-17 Mar-24 e 2Re22R8Q55yy3yYTRI 555°55555555555°55585 Source: RBI, AMFI A diversified play in wealth management

  17. Slide 17: Individual Equity AUM: A Focus Area for Prudent

    Individual Equity AUM: A Focus Area for Prudent P tal 6 [ Equity AUM ETF / FOF AUM Others AUM 72.40% 27.60% 36.45 783 16.88 Non-Individual Individual Non-Individual Individual Non-Individual AUM AUM 4.37 12.45 Regular AUM Regular AUM Regular AUM 2470 0.26 2.69 L R Direct AUM Direct AUM Direct AUM 7.

  18. Slide 18: Individual Equity AUM: A Focus Area for Prudent

    N ‘ Individual Equity AUM: A Focus Area for Prudent Individual Non-Individual Individual Non-Individual Individual Non-Individual AUM AUM AUM AUM AUM AUM 52.45 715 1.41 11.39 7.24 20.36 Regular AUM Regular AUM Regular AUM 40.39 0.42 440 Direct AUM Direct AUM Direct AUM 12.06 0.99 2.84 Value rebased

  19. Slide 19: AUM Journey: A Structural Growth Story

    N ‘ AUM Journey A structural Growth story = Total AUM Equit —&— Equity to Total AUM AUI\lI:II >9y[]% 83,384 € € Prudent's AUM grew at CAGR of 39%, versus Industry’s 19% from March 2021-2024 ” Equity AUM <55% “ Prudent’s Equity AUM grew at CAGR of 44%, from March 2021-2024 ” 30846 21247 19389 16708 “

  20. Slide 20: Decadal Growth

    N ‘ Decadal Growth 1686669 29605 > 3 3 3 ,.\\é‘ R& L) N 2731 184297 I FY14 FY24 Fy14 FY24 726 80230 2507756 & @ 2 &o &\6‘ ‘.\\5 £ /\ Q ) @ 2033 25 141648 R I FY14 FY24 Fy14 FY24 FYy14 Fy24 A diversified play in wealth management

  21. Slide 21: Prudent Equity AUM Growing Double that of Industry

    ~N_~ Prudent Equity AUM Growing Double that of Industry “=o==Fquity AUM-Industry =@ Equity AUM-Prudent 754 Growing at a pace higher than the industry led by organic and inorganic route 315 159 173 180 182 196 203 291 31 %0 147 244 256 259 206 217 225 215 179 129 126 126 132 127 g 159 o T8 M6 ms e 12

  22. Slide 22: How Prudent Bridged the GAP with Biggies in the last Decade

    N How Prudent Bridged the GAP with Biggies in the last Decade Citibank N.A. 550 HDFC Bank Limited 540 Hongkong & Shanghai Banking Corporation Ltd 480 NJ Indiainvest Pvt Ltd 420 Standard Chartered Bank 300 ICICI Bank Limited 290 Kotak Mahindra Bank Limited 290 Axis Bank Limited 280 ICICI Securities L

  23. Slide 23: Vintage of Prudent AUM vs Industry

    N ‘ Vintage of Prudent AUM vs Industry Prudent Individual Equity AUM staying invested for more than 24 months is higher by 640 basis points Versus Industry ¥ Prudent 616% M Industry 55.2% 26.8% 21.8% 166% 18.0% Holding Period of < 12 Months Holding Period of 12-24 Months Holding Period of > 24 Month

  24. Slide 24: Factors Behind AUM Growth

    N Factors Behind AUM Growth SIPs Providing Stability to Net Flows Contribution of Net Sales & M2M in AUM Movement ® Gross Equity Flows through SIPs is providing stability to net sales with the same (Ex-Acqwsmons) growing at a CAGR of 22% FY19-24 & now almost every second rupee of flows comes ® The A

  25. Slide 25: Prudent Becomes Fourth Largest Mutual Fund Distributor in FY23

    Nl l Prudent Becomes Fourth Largest Mutual Fund Distributor in FY23 ‘ it e H fi o ~ TotaCommission(tac) Commission of MFDs per AMFI Data 500041 854974 793760 614654 661575 1042023 1207170 Growth 36.71% 70.98% -7.16% -22.56% 7.63% 5751% 15.80% Commission as earned by Prudent 9921 21782 23472 22974 263

  26. Slide 26: Innovation to Improve Investor & Partner Experience

    N Innovation to Improve Investor & Partner Experience Business Growth Dedicated Relationship Manager Digital Platform Multiple Product basket Various Research Reports & Tools Competitive Brokerage Structure The Spectrum, PMS cursor, Morning Coffee Report Ready-made research-based combos Zero Investm

  27. Slide 27: MFDs remain Backbone for the Company's Journey so Far

    N MFDs remain Backbone for the Company'’s Journey so Far Our value propos creased partil @ No of individual ARN in India stood at 1,47,527 with every fifth MFD working with Prudent. 14007 @ It provides value proposition to the AMCs to source business from retail investors in a cost-efficient manner

  28. Slide 28: Productivity of MFD Increases

    Productivity of MFD Increases > No of MFDs Average Gross Sales Per Client* Average Value of New SIPs Added Average AUM per Client* Per Client* 28040 143069 892889 4154 2948 52395 326944 MFDs > 10 crore MFDs <10 crore MFDs>10 crore MFDs <10 crore MFDs >10 crore MFDs <10 crore MFDs > 10 crore MFDs <10

  29. Slide 29: MFDs - Deconcentrating and Combining with Insurance

    MFDs- > Deconcentrating The MFDs share : MFDs Combining with Insurance = Top 100 MFDs 2.80% for Insurance m Commo n Top 50 mTop 10 30,349 14.52% 9.14% Value proposition offered to MFDs helps increase the MFDs pie every A large MFD base & a multi-product basket platform helps MFDs to cross- year with

  30. Slide 30: Embedding Technology - Multiple Platforms for diverse needs

    ‘ Embedding Technology- Multiple Platforms for diverse needs PRUDENTCONNECT POLICYWORLD WISEBASKET (MFD CONNECT) Online insurance platform offering Online facility to invest in multiple PrudentConnect is a virtual office completely paperless transactions model stock portfolios which are for MFDs whi

  31. Slide 31: Geographical presence - Playing on Tier I & II cities

    ‘ Geographical presence - Playing on Tier | & I cities ® Prudent s one of the very few national distributors (non-bank) with a Our INVESTORS are present across INDIA presence in the B-30 market catering to retail investors. This geography is except Andaman & Nicobar under penetrated and provides an

  32. Slide 32: A SIP Led Equity AUM Bringing Stability to Net Flows

    N A SIP Led Equity AUM Bringing Stability to Net Flows ® Ason June-24, AUM from the mutual fund business stood at Rs. 96,260 Cr with 96.8% of total AUM being ww Gross Inflow via SIPs —#—% as Gross Eq Inflows equity-oriented. 418% 438% 219% 434% bbb 38.7% @ Since individual investors tend to stay inv

  33. Slide 33: Statistics on Customer Profiling

    ‘ Statistics on > How Many Investors in Prudent do SIPs Customer Profiling: Below 35 Age Group Investors Helping to Build Granular Book NoLive SIP 6% Particulars No. of Total Equity Non- No of LiveSIP AUM Per Investors AUM Equi Live SIP Amount Investor ®Only 1SIP quity 45% >0 <25 8.2% 3.4% 33% 37% 7

  34. Slide 34: All Roads Lead to Profitability

    N All Roads Lead to Profitability @ Despite the regulatory changes®*, Total Revenue from Operations has grown at a CAGR of 29% from FY19-24. o ch“fl\% 612 @ Total operating expenditure has grown at a CAGR 438 of 27% from FY19-24. Since, revenues has grown 336 faster than operating expenses, operating

  35. Slide 35: Financials At Glance

    N Financials At Glance InZcr. — Revenue == Growth — FRITDA —=—FRIDTA Margin 571% 28.4% 83384 756% 2.0% iz 56189 30846 21247 19389 l FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 FY19 FY20 FY21 FY22 FY23 FY24 — PAT —&—PAT Margin % 335 282 287% 28.8% 25.3% 24.8% 194 10 - . l FY19 FY20 FY

  36. Slide 36: Strategic Acquisition

    ‘ Strategic Healthy Cash flows led to the acquisition of Mutual Fund AUM of Karvy Stock Broking Limited in all Cash deal Strategic Acquisition KPIs (as on acquisition date) @ Prudent selected as the highest bidder by the Joint Committee of Exchanges Equity Com ponent for the acquisition/transfer of

  37. Slide 37: Q1FY2025

    PLugeW‘ — Money through wisdom — Investor Presentation | Q1FY2025 A diversified play in wealth management | 36

  38. Slide 38: Shareholding pattern

    ‘ Shareholding pattern ™ Promoters DSP Investment Managers Pvt Ltd TS 866% Non-Institutions Zulia Investments Pte Ltd (Temasek Group) 1.85% W |nstitutions Kotak Mahindra Asset Management Company Ltd 4.40% HSBC Asset Management Company Ltd 2.49% 35.19% Canara Robeco Asset Management Company Ltd 21% N

  39. Slide 39: Investor Presentation Q1FY2025

    — Money through wisdom — O Investor Presentation [Q1FY2025 A diversified play in wealth management | 38

  40. Slide 40: Q1FY25

    Q1FY25 Crossed 2963 billion AUM mark Monthly SIP Book grew by 41.0%jin’June;to Consolidated revenue Consolidated EBITDA 780 crore up by 50.8% vov up by 50.5% vov providing strong growth visibility A diversified play in wealth management | 39

  41. Slide 41: Q1FY25 Result Highlights - Consolidated

    N4 ® 01Fvs- Result Highlights- Consolidated InZcr. 2494 1654 L 50.8% 50.5% S )575% Q1FY24 Q1FY25 Q1FY24 Q1FY25 Q1FY24 Q1FY25 A diversified play in wealth management ‘

  42. Slide 42: Q1FY25 - AUM Change

    N Q1FY25 - AUM Change 83384 89275 89275 58899 Yov 19.2% QoQ 10.4% 516% 69944 80889 YEARLY AVG AUM OF FY24 CLOSING AUM AS OF Q4FY24 Q1FY25 Q1FY24 Q1FY25 MARCH 2024 A diversified play in wealth management

  43. Slide 43: Equity AUM Movement

    N Equity AUM Movement 26002 93149 10420 2499 80230 3.0% 13.0%o 7981 59166 44% 13% Jun-23 Net Sales M2M Impact Jun-24 Mar-24 Net Sales M2M Impact Jun-24 A diversified play in wealth management

  44. Slide 44: Q1FY25 - Equity & SIP

    N Q1FY25 - Equity & SIP 252% 2.52% .8% 2.46% 96.2% 968 93.8% June-23 March-24 June-24 June-23 March-24 June-24 38% 524% 37% 37% June-23 March-24 June-24 10FY24 4QFY24 10FY25 * STP Value as on June-24 stood at Rs 98 crores which is not included in the above number. This number is reported on actual r

  45. Slide 45: Emerging Segment - Insurance

    N Emerging Segment - Insurance Total Premium Z 117.3 crore [ [ Life Insurance % 89.0 Crore ) =8 Fresh Premium Z 25.8 crore Life Insurance Z 17.0 Crore General Insurance] [ General Insurance] ¥ 28.3 Crore ¥ 8.8 Crore Total Commission [ Life Insurance Z 15.9 Crore ) Other Key Data (as on June 2024): T

  46. Slide 46: Consolidated - Q1FY25

    N l Consolidated - Q1FY25 Total Commission and Fee Income from (a+b+c+d) 2477 2376 164.4 50.6% Distribution of Mutual Fund Products (a) 205.2 1821 1385 Distribution of Insurance Products (b) 261 395 16.3 Stock Broking and Allied Services (c) 73 76 41 Other Financial and Non Financial Products (d) O

  47. Slide 47: Standalone - Q1FY25

    N l Standalone - Q1FY25 Quarterly Average AUM 89275 80889 10.4% 58899 51.6% Total Commission and Fee Income from (a+b+c) 2215 198.0 1.9% 1481 496% Distribution of Mutual Fund Products (a) 2051 1820 1384 Stock Broking and Allied Services (b) 73 76 41 Other Financial and Non Financial Products (c) 02

  48. Slide 48: Contact details

    ~ Money through wisdom — DICKENSON Prudent Corporate Advisory Services Ltd Mr. Manoj Saha Mr. Parth Parekh e-mail: prudent@dickensonworld.com e-mail: parth.parekh@prudentcorporate.com Mob: 9819860835 Mob: 9819878413 www.prudentcorporate.com https://www.fundzbazar.com

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