Prudent Corporate Advisory Services Limited · NSE:PRUDENT
Prudent Corporate Advisory Services — Q1 FY2023 Earnings Presentation
37 slides from Prudent Corporate Advisory Services's earnings presentation, Aug 1, 2022
Slide 1: Exchange filing cover letter for investor presentation
PCASL/22/2022-23 Date: 01.08.2022 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 Q1 FY 2023
A diversified play in wealth management. Investor Presentation Q1 FY 2023 Prudent Corporate Advisory Services Ltd. 1
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
A diversified play in wealth management. About Us 3
Slide 5: About Us
About Us A diversified play in wealth management. Vision Founded in 2003 & headquartered in Ahmedabad, Prudent To be the most preferred group in financial services catering Corporate Advisory Services is one of India’s fastest-growing to the masses with the help of technology. financial services gro
Slide 6: Key Management
Key Management A diversified play in wealth management. Leadership Team Board Members Sanjay Shah - Chairman & Managing Director Dhiraj Poddar (Non Executive Director*) Chartered Accountant with more than two decades of Serving as Country Head – India & MD of TA Associates with 17+ years of experien
Slide 7: Our Journey So Far
Our Journey So Far A diversified play in wealth management. AUM – ₹ 100 bn Ecosystem Growth First ₹100 bn in 16 • 2006 – Launched years partner network 2022 Next ₹400 bn in less • 2010 – Launched 2021 Property Advisory Expansion into other than 6 years • 2016 – Obtained SEBI financial products AUM –
Slide 8: Business Overview
A diversified play in wealth management. Business Overview 7
Slide 9: 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 Prudent Corporate Distribution of Mutual Commission from AMC Fund Products Distribution of Insurance Commission from Recurring Products Insurance companies
Slide 10: Mutual Fund Distribution- A dominant pie of the services
Mutual Fund Distribution- A A diversified play in wealth management. dominant pie of the services In ₹ Crs AUM growth CAGR of 33% FY19-22 92.6% o The company follows an “open-source” distribution model, under which it 87.7% distributes mutual funds of AMCs 85.8% Mutual irrespective of their affiliat
Slide 11: Other Financial Products- Insurance Leads the pack
Other Financial Products- A diversified play in wealth management. Insurance Leads the pack o Gennext- a wholly owned subsidiary is Revenue growth registered as an insurance broker for life and CAGR of 47% FY19-22 general insurance with IRDAI. It distributes insurance products offered by various lif
Slide 12: Diversification: Creating a second pillar of growth
Diversification: Creating a A diversified play in wealth management. second pillar of growth Stock FY19 FY22 Broking Stock Broking 7.6% Increasing share of Insurance 4.1% Others 1.4% products from 0.2% in FY19 to Others Insurance 8% in FY22 Insurance 3.0% Products Products 0.2% Insurance Revenue
Slide 13: Rationale & Strategy
A diversified play in wealth management. Rationale & Strategy 12
Slide 14: 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 relationship A growing & with MFD’s underpene
Slide 15: Industry Tailwinds
Industry Tailwinds A diversified play in wealth management. AUM Trajectory (₹ in trn) Equity AUM Trajectory (₹ in trn) 26.0 57.6 31.4 13.75 Industry Tailwinds aiding 11.9 3.65 1) Equity-led AUM growth 2) B-30 led equity concentration Mar-15 Mar-21 Mar-26 Mar-15 Mar-20 Mar-21 Mar-26 3) Retail Insuran
Slide 16: AUM Journey
AUM Journey A diversified play in wealth management. A structural Growth story Equity AUM +90% 92.6% Equity 87.7% Prudent’s AUM grew at 85.8% AUM ~50% 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 17: Innovation to Improve Investor & Partner Experience
Innovation to Improve Investor A diversified play in wealth management. & Partner Experience • Business Opportunity Programme (BOP) Business Initiation • Training & Education to clear AMFI MF Advisors Module Dedicated Relationship • Paperless on-boarding for Partner Registration Manager Business P
Slide 18: MFDs remain Backbone for the company's journey so far
MFDs remain Backbone for A diversified play in wealth management. the company’s journey so far Our Approach No. of MFDs 23763 Client CAGR of 30% 16853 14007 Prudent has a network of 23,763 11620 MFDs representing 8378 approximately 20.4% of the MFDs MFDs MFDs overall MFDs. 23,763 MFDs It provide
Slide 19: MFDs- Diversity bring Sustainability & Stability
MFDs- Diversity bring A diversified play in wealth management. Sustainability & Stability Deconcentrating The MFDs share MFDs Combining with Insurance 6803 20465 3298 Insurance POS MFDs Common for Insurance Value proposition offered to MFDs helps increase the MFDs pie A large MFD base & a multi-prod
Slide 20: Embedding Technology-Multiple Platforms for diverse needs
Embedding Technology-Multiple A diversified play in wealth management. Platforms for diverse needs PRUDENTCONNECT (MFD CONNECT) POLICYWORLD WISEBASKET PrudentConnect is a Online insurance Online facility to invest virtual office for MFDs platform offering in multiple model stock which provides end-t
Slide 21: 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-bank) with a Our INVESTORS are present across INDIA presence in the B-30 market caterin
Slide 22: A SIP Led Equity AUM plays a pivoting factor
A SIP Led Equity AUM plays a pivoting factor in company A diversified play in wealth management. topography SIP led AUM provides continuity Gross Inflow via SIPs (₹ cr) SIP AUM as % of Equity AUM 44.9% 47.5% 43.8% 41.9% 41.8% 38.7% As on FY22, AUM from the mutual fund 35.4% 32.9% 29.1% distributio
Slide 23: 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. Prudent’s business model is neither Commission and Fee income (₹ Cr) Total AUM (₹ cr) CAPEX nor OPEX intensi
Slide 24: Strategic Acquisition
Strategic Acquisition 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) Total AUM of ₹8093 cr Prudent selected as the highest bidder by the Joint
Slide 25: Financials At Glance
Financials At Glance A diversified play in wealth management. In ₹ cr. ₹Cr. Revenue & YoY Growth % EBITDA & Margin (%) PAT & Margin (%) 57.1% 17.8% 25.6% 15.8% 21.6% 19.9% 17.2% 11.9% 9.5% 22.1% 451 80 115 10.4% 5.9% 235 287 45 222 62 38 47 21 28 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY2
Slide 26: Shareholding Pattern
A diversified play in wealth management. Shareholding Pattern 25
Slide 27: Shareholding pattern
Shareholding pattern A diversified play in wealth management. As on June 2022 Top 10 Institutions Holdings As a % to Overall Institution Names Shareholding L&T Investment Management Ltd 1.87 DSP Investment Managers Pvt Ltd 1.82 Non-Institution, 30% Kotak Mahindra Asset Management Company Ltd 1.64 Pr
Slide 28: Q1 FY23 Results Highlights
A diversified play in wealth management. Q1 FY23 Results Highlights 27
Slide 29: Q1FY23 Result Highlights
Q1FY23 Result Highlights A diversified play in wealth management. Market share in Equity Quarterly Average AUM Equity mix increased by AUM (Ex-ETFs) up by 37 higher by 49% YoY 380 bps YoY to 93.1% bps YoY to 2.30% Standalone EBITDA up Standalone revenue up Standalone Cash PAT up by 74% YoY, Margin u
Slide 30: Q1FY23- Result Highlights- Consolidated
Q1FY23- Result Highlights- A diversified play in wealth management. Consolidated In ₹ Cr Revenue & YoY Growth % EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 17.3% 128.3 25.0% 15.1% 23.2% 89.8 43% 54% 25% 32.1 19.4 20.8 15.5 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Revenue growth of 43% YoY led
Slide 31: Q1FY23- AUM change
Q1FY23- AUM change A diversified play in wealth management. Closing AUM (₹ crs) Quarterly Avg AUM (₹ crs) 20.7% 48590 48115 49473 46849 39847# 3674 32371 3641 3368 3231 34257 YoY QoQ 3646 36.8% - 5.3% YoY QoQ 3667 3699 48.6% - 1.0% 45799 44949 44747 43618 36201 30589 28672 Q1FY22 Q4FY22 Q1FY23 FY22
Slide 32: Q1FY23- Equity AUM Movement
Q1FY23- Equity AUM A diversified play in wealth management. Movement Change in Equity AUM YoY (₹ crs) Change in Equity AUM QoQ (₹ crs) 3.2% -1.4% -8.0% 23.9% 20.1% 31
Slide 33: Q1FY23- Equity & SIP
Q1FY23- Equity & SIP A diversified play in wealth management. Market Share in Equity AUM of Prudent Equity AUM % of Total AUM Prudent versus Industry 2.32% 2.30% 92.6% 93.1% 89.3% 52.5% 53.1% 47.1% 1.93% Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Monthly SIP Flow (₹ cr)and Market Share (%) Gross SIP
Slide 34: Emerging Segment- Insurance
Emerging Segment- A diversified play in wealth management. Insurance Total Premium Fresh Premium 57.21 Crore 22.36 Crore Life Insurance General Insurance Life Insurance General Insurance 39.69 Crore 17.53 Crore 17.13 Crore 5.23 Crore Total Commission Other Key Data (as on June 2022): 7.62 Crore Tota
Slide 35: Consolidated- Q1FY23
Consolidated- Q1FY23 A diversified play in wealth management. Particulars (in Crores) Q1FY23 Q1FY22 YoY (%) Q4FY22 QoQ (%) Total Commission and Fee Income from (a+b+c+d) 126.8 87.2 45.5% 128.7 -1.5% Distribution of Mutual Fund Products-Trail Revenue (a) 112.3 74.9 50.0% 108.8 3.2% Distribution of In
Slide 36: Standalone Q1FY23
Standalone Q1FY23 A diversified play in wealth management. Particulars (in Crores) Q1FY23 Q1FY22 YoY (%) Q4FY22 QoQ (%) Total Commission and Fee Income from (a+b) 114.8 75.7 51.5% 111.3 3.1% Distribution of Mutual Fund Products (a) 112.3 74.7 50.2% 108.8 3.2% Other Financial and Non Financial Produc
Slide 37: Contact details
Prudent Corporate Advisory Services Ltd Mr. Parth Parekh parth.parekh@prudentcorporate.com Tel: 079 40209600 (Ext No. – 460) Mr Chintan Mehta / Mr Rahul Jaju prudent@dickensonworld.com Mob: 9892183389/ 9773264172 www.prudentcorporate.com
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