Prudent Corporate Advisory Services Limited · NSE:PRUDENT
Prudent Corporate Advisory Services — Q2 FY2023 Earnings Presentation
42 slides from Prudent Corporate Advisory Services's earnings presentation, Nov 1, 2022
Slide 1: Exchange filing cover letter
PCASL/43/2022-23 Date: 01.11.2022 To, To, The National Stock Exchange of India Ltd BSE Limited Exchange Plaza, Phiroze Jeejeebhoy Towers, Bandra – Kurla Complex, Dalal Street, Bandra (E), Mumbai- 400 001 Mumbai – 400 051 SCRIPT CODE: 543527 NSE EQUITY SYMBOL: PRUDENT ISIN: INE00F201020 Dear Sir/Mada
Slide 2: Investor Presentation Q2 & H1 FY2023
Investor Presentation Q2 & H1 FY2023 Prudent Corporate Advisory Services Limited
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
Slide 4: About Us
About Us Prudent Corporate Advisory Services Limited 3
Slide 5: About Us
About Us A diversified play in wealth management. Founded in 2003 & headquartered in Ahmedabad, Prudent Corporate Advisory Services is one of India’s fastest-growing Vision financial services group. To be the most preferred group in financial services catering to the masses with the help of technolo
Slide 6: Key Management: Leadership Team
Key Management: A diversified play in wealth management. Leadership Team Sanjay Shah Shirish Patel Chirag Shah Chirag Kothari Chairman & Managing Director CEO & Whole-time Director Whole-time Director Whole-time Director Chartered Accountant with more MBA in Finance & diploma in Computer Fellow memb
Slide 7: Key Management: Board Members
Key Management: A diversified play in wealth management. Board Members Dhiraj Poddar Deepak Sood Karan Kailash Datta Shilpi Thapar Aniket Talati (Non Executive Director*) (Independent Director) (Independent Director) (Independent Director) (Independent Director) Serving as Country Head – Fellow of I
Slide 8: Our Journey So Far
Our Journey So Far A diversified play in wealth management. First ₹100 bn in Next ₹ 400 bn in Expansion into other financial products Ecosystem Growth 16 years less than 6 years Partnership & Penetration 2022 The Early Years 2020 - 2021 2017 - 2019 2007 - 2016 AUM – ₹ 500 bn AUM – ₹ 300 bn ▪ Launche
Slide 9: Business Overview
Business Overview Prudent Corporate Advisory Services Limited 8
Slide 10: Play on distribution of diverse financial products
Play on distribution of diverse A diversified play in wealth management. Financial Products REVENUE STREAM NATURE OF REVENUE REVENUE- FREQUENCY Distribution of Commission from AMC Mutual Fund Products Distribution of Commission from Recurring Revenue CORPORATE PRUDENT Insurance Products Insurance co
Slide 11: Mutual Fund Distribution - A dominant pie of the services
Mutual Fund Distribution- A diversified play in wealth management. A dominant pie of the services AUM growth CAGR of 33% FY19-22 In ₹ Crs ▪ The company follows an “open-source” distribution 92.6% model, under which it distributes mutual funds of AMCs irrespective of their affiliation or size thus ₹
Slide 12: Other Financial Products - Insurance Leads the pack
Other Financial Products- A diversified play in wealth management. Insurance Leads the pack Revenue growth CAGR of 47% FY19-22 ₹ in Crores ▪ Gennext- a wholly owned subsidiary is registered as an 62.6 insurance broker for life and general insurance with IRDAI. It distributes insurance products offer
Slide 13: Diversification: Creating a second pillar of growth
Diversification: “Creating a second A diversified play in wealth management. pillar of growth” FY19 FY22 Stock Stock Broking Broking 7.6% ▪ Increasing share of Insurance 4.1% Others products from 0.2% in FY19 to 8% 1.4% Others in FY22 Insurance Insurance 3.0% Products Products 8.1% 0.2% ▪ Insurance
Slide 14: Rationale & Strategy
Rationale & Strategy Prudent Corporate Advisory Services Limited 13
Slide 15: Delivering sustained performance
Delivering sustained A diversified play in wealth management. performance A complete ecosystem of Financial Products makes “PRUDENT corporate” a prudent choice for MFDs & Client’s A Strong Platform A complete Eco System A sustainable roadmap Long Lasting A growing & relationship underpenetrated with
Slide 16: Industry Tailwinds
Industry Tailwinds A diversified play in wealth management. AUM Trajectory (₹ in trn) Equity AUM Trajectory (₹ in trn) B-30 tilts towards Equity oriented schemes (in %) 58 26 25 32 56 11 12 75 4 44 Mar-15 Mar-21 Mar-26 Mar-15 Mar-20 Mar-26 Equity Oriented schemes Non- Equity oriented schemes Retail
Slide 17: Individual Equity AUM: A Focus Area for Prudent
Individual Equity AUM: A Focus A diversified play in wealth management. Area for Prudent Total Aum 39.88 Equity AUM ETF / FOF AUM Others AUM 64% 36% 20.42 4.98 14.48 Individual Non-Individual Individual Non-Individual Individual Non-Individual AUM AUM AUM AUM AUM AUM 18.17 2.25 0.50 4.48 4.09 10.39
Slide 18: AUM Journey: A structural growth story
AUM Journey A diversified play in wealth management. A structural Growth story Equity Equity AUM +90% AUM <50% 92.6% 87.7% Prudent’s AUM grew at 85.8% 83.5% 82.6% 49473 CAGR of 32%, versus 74.6% Industry’s 20.5% from 71.2% March 2019-2022 65.3% 57.1% 53.9% 30846 48.8% Prudent’s Equity AUM grew at CA
Slide 19: Prudent Equity AUM growing double that of Industry
Prudent Equity AUM growing A diversified play in wealth management. double that of Industry 489 Values Rebased to 100 Equity AUM - Industry Equity AUM - Prudent 423 436 414 Growing at 2x of industry 336 growth rate 290 258 led by organic 233 217 225 215 244 and inorganic 203 206 173 180 182 196 184
Slide 20: Fifth Largest Mutual Fund Distributor by Commission
Prudent: Fifth Largest Mutual Fund Distributor in terms of A diversified play in wealth management. Commission received Total Commission (Lacs) Name of the ARN Holder 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Commission of MFDs per AMFI Data 500041 854974 793760 614654 661575 1042023 Growth 36
Slide 21: Innovation to Improve Investor & Partner Experience
Innovation to Improve A diversified play in wealth management. Investor & Partner Experience ▪ Business Opportunity Programme (BOP) ▪ Dedicated Relationship Manager Business Initiation ▪ Training & Education to clear AMFI MF Advisors Module ▪ Paperless on-boarding for Partner Registration ▪ Multiple
Slide 22: MFDs remain Backbone for the company's journey
MFDs remain Backbone for the A diversified play in wealth management. company’s journey so far Our Approach No. of MFDs ▪ Prudent has a network of 23,763 MFDs representing Client approximately 20.4% of the 23763 overall MFDs. 16853 14007 ▪ It provides value proposition 11620 23,763 8378 to the AMCs
Slide 23: MFDs - Diversity bring Sustainability & Stability
MFDs- Diversity bring A diversified play in wealth management. Sustainability & Stability Deconcentrating The MFDs share MFDs Combining with Insurance 2.61% 6803 20465 3298 13.84% Insurance POS 8.48% Top 100 Top 50 Top 10 MFDs Common for Insurance Value proposition offered to MFDs helps increase the
Slide 24: Embedding Technology - Multiple Platforms for diverse needs
Embedding Technology-Multiple A diversified play in wealth management. Platforms for diverse needs PRUDENTCONNECT (MFD CONNECT) PrudentConnect is a virtual office for MFDs POLICYWORLD WISEBASKET which provides end-to-end support for Online insurance platform Online facility to invest in multiple mod
Slide 25: Geographical presence - Playing on Tier I & II cities
Geographical presence – A diversified play in wealth management. Playing on Tier I & II cities Getting growth from uncharted and underpenetrated markets ▪ Prudent is one of the very few national distributors (non- Our INVESTORS are present across INDIA bank) with a presence in the B-30 market cateri
Slide 26: A SIP Led Equity AUM plays a pivoting factor
A SIP Led Equity AUM plays a pivoting A diversified play in wealth management. factor in company topography SIP led AUM provides continuity ▪ As on FY22, AUM from the mutual fund distribution business stood at Gross Inflow via SIPs (₹ cr) SIP AUM as % of Equity AUM Rs. 49,473 Cr with 92.6% of total
Slide 27: Customer Profiling: Below 35 Age Group Investors
Customer Profiling: Below 35 Age Group Investors Helping to Build A diversified play in wealth management. Granular Book Particulars No. of Investors Total AUM Equity Non-Equity No of Live SIP Live SIP Flow >0 <25 5.98% 3.65% 3.58% 3.86% 7.06% 6.36% 25 to 35 16.83% 12.12% 14.20% 6.74% 27.98% 23.95%
Slide 28: All Roads Lead to Profitability
All Roads Lead to Profitability A diversified play in wealth management. Consistent track record of profitable growth due to highly scalable, asset-light and cash generative business model. Commission and Fee income (₹ Cr) Total AUM (₹ cr) ▪ Prudent’s business model is neither CAPEX nor OPEX intensi
Slide 29: Strategic Acquisitions
Strategic Acquisitions A diversified play in wealth management. 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 Exchange
Slide 30: Financials At Glance
Financials At Glance A diversified play in wealth management. In ₹ cr. ₹Cr. Revenue & YoY Growth % EBITDA & Margin (%) PAT & Margin (%) 57.1% 25.6% 15.8% 17.8% 21.6% 19.9% 11.9% 22.1% 17.2% 5.9% 9.5% 10.4% 451 80 115 287 45 222 235 38 47 62 28 21 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY2
Slide 31: Shareholding Pattern
Shareholding Pattern Prudent Corporate Advisory Services Limited 30
Slide 32: Shareholding pattern
Shareholding pattern A diversified play in wealth management. Top Institutions Holdings SHAREHOLDING PATTERN –30th September 2022 Institution Names As a % to Overall Shareholding L&T Investment Management Ltd 2.12 Non- Promoters, Institution, 58.44% DSP Investment Managers Pvt Ltd 1.82 29.27% Kotak
Slide 33: Q2 FY23 Results Highlights
Q2 FY23 Results Highlights Prudent Corporate Advisory Services Limited 32
Slide 34: Q2FY23 Result Highlights
Q2FY23 Result Highlights A diversified play in wealth management. Market share in Equity Quarterly Average AUM Equity mix increased by AUM (Ex-ETFs) up by 42 higher by 41.2% YoY 343 bps YoY to 94.1% bps YoY to 2.36% Standalone EBITDA up by Standalone revenue up by Standalone Cash PAT up 62.3% YoY, M
Slide 35: Q2FY23 Result Highlights - Consolidated
Q2FY23- Result Highlights- A diversified play in wealth management. Consolidated In ₹ cr. Revenue & YoY Growth % EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 147.6 27.2% 24.0% 105.7 18.5% 18.7% 39.7% 58.4% 41.1% 27.6 40.2 25.4 19.6 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 ▪ Revenue growth of 39.
Slide 36: Q2FY23 AUM change
Q2FY23- AUM change A diversified play in wealth management. Closing AUM (₹ crs) Quarterly Avg AUM (₹ crs) 29.6% 52769 46849 3096 51630 48115 38988 3231 3198 QoQ YoY 39847# 3368 YoY 3626 12.6% QoQ 35.3% 36560 41.2% 3646 7.3% 3557 49673 43618 48432 44747 35362 36201 33003 Sep-21 Jun-22 Sep-22 FY22 Q2F
Slide 37: Q2FY23 Equity AUM Movement
Q2FY23- Equity AUM Movement A diversified play in wealth management. Change in Equity AUM YoY (₹ crs) Change in Equity AUM QoQ (₹ crs) 3.0% 20.7% 2.9% 11.0% 16.8% 36
Slide 38: Q2FY23 Equity & SIP
Q2FY23- Equity & SIP A diversified play in wealth management. Market Share in Equity AUM Ex ETF of Prudent Equity AUM % of Total AUM Prudent versus Industry 2.3% 2.4% 90.7% 93.1% 94.1% 1.9% 54.9% 49.7% 53.1% Sep-21 Jun-22 Sep-22 Sep-21 Jun-22 Sep-22 Prudent Industry Monthly SIP Flow (₹ cr)and Market
Slide 39: Emerging Segment - Insurance
Emerging Segment- Insurance A diversified play in wealth management. Life Insurance Life Insurance 70.8 Crore 37.7 Crore Total Premium Fresh Premium ₹ 93.6 Crore ₹ 44.5 Crore General Insurance General Insurance 22.8 Crore 6.8 Crore Life Insurance Other Key Data (as on September 2022): 10.3 Crore Tot
Slide 40: Consolidated - H1 & Q2FY23
Consolidated- H1 & Q2FY23 A diversified play in wealth management. Particulars (in Crores) Q2FY23 Q2FY22 YoY (%) Q1FY23 QoQ (%) H1FY23 H1FY22 YoY(%) Total Commission and Fee Income from (a+b+c+d) 145.7 103.0 41.5% 126.8 15.0% 272.5 190.2 43.3% Distribution of Mutual Fund Products-Trail Revenue (a) 1
Slide 41: Standalone H1 & Q2FY23
Standalone H1 & Q2FY23 A diversified play in wealth management. Particulars (in Crores) Q2FY23 Q2FY22 YoY (%) Q1FY23 QoQ (%) H1FY23 H1FY22 YoY(%) Total Commission and Fee Income from (a+b) 127.1 89.9 41.3% 114.8 10.7% 241.9 165.7 46.0% Distribution of Mutual Fund Products (a) 123.3 88.6 112.3 235.6
Slide 42: Thank You
Thank You Prudent Corporate Advisory Services Ltd Mr. Parth Parekh Mr Manoj Saha / Mr Rahul Jaju parth.parekh@prudentcorporate.com prudent@dickensonworld.com Tel: 079 40209600 (Ext No. – 460) Mob: 9819860835/ 9773264172 www.prudentcorporate.com
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