Prudent Corporate Advisory Services Limited · NSE:PRUDENT
Prudent Corporate Advisory Services — Q4 FY2024 Earnings Presentation
49 slides from Prudent Corporate Advisory Services's earnings presentation, May 6, 2024
Slide 1: Exchange filing cover letter
Date: 06.05.2024 To, To, The National Stock Exchange of India BSE Limited, 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 Sub.: Investor Presentation
Slide 2: Investor Presentation Q4FY2024
Investor Presentation Q4FY2024 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 Chief Financial Officer Chartered Accountant with more MBA in Finance & diploma in Computer Fellow
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 ₹700 bn in Expansion into other financial products Ecosystem Growth 16 years around 7 years Partnership & Penetration 2022-24 The Early Years 2020 - 2021 2017 - 2019 2007 - 2016 AUM – ₹ 834 bn AUM – ₹ 300 bn ▪ Launched
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 31% FY19-24 In ₹ Crs ▪ The company follows an “open-source” distribution model, under which it distributes mutual funds of AMCs irrespective of their affiliation or size thus ₹ provid
Slide 12: Other Financial Products - Insurance Leads the pack
Other Financial Products- A diversified play in wealth management. Insurance Leads the pack ₹ in Crores Revenue growth CAGR of 44% FY20-24 ▪ Gennext- a wholly owned subsidiary is registered as an 166.2 insurance broker for life and general insurance with IRDAI. It distributes insurance products offe
Slide 13: Diversification: Creating a second pillar of growth
Diversification: “Creating a second A diversified play in wealth management. pillar of growth” Stock FY20 Stock FY24 Broking, Broking, 8.2% Others, 3.5% Others, 1.0% 3.3% ▪ Increasing share of Insurance Insurance Insurance Products, products from 7% in FY20 to 13.8% Products, 7.2% in FY24 13.8% MF M
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: Future of MF Industry
Future of MF Industry A diversified play in wealth management. Gross Domestic Product (in ₹ trillion) Gross Household Financial Savings (in ₹ trillion) 61.5 566 India's Gross 30 10.9% Household Savings 272 are anticipated to 11 10.9% increase alongside 99 GDP growth, and the 10.7% proportion of thes
Slide 17: Industry on an Upturn... But Long Runway Left
Industry on an Upturn...But Long A diversified play in wealth management. Runway Left Mutual Fund AUM as a % to GDP Unique Investors in MF Industry 18% 44.6 37.7 33.7 11% 20.8 22.8 7% 17.1 19.3 FY13 FY17 FY24 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Retail + HNI Assets in Overall MF AUM Flow
Slide 18: Individual Equity AUM: A Focus Area for Prudent
Individual Equity AUM: A Focus A diversified play in wealth management. Area for Prudent Total Aum 53.40 Equity AUM ETF / FOF AUM Others AUM 70.70% 29.30% 30.86 6.89 15.65 Individual Non-Individual Individual Non-Individual Individual Non-Individual AUM AUM AUM AUM AUM AUM 27.16 3.70 0.69 6.20 4.38
Slide 19: Individual Equity AUM: A Focus Area for Prudent
Individual Equity AUM: A Focus A diversified play in wealth management. Area for Prudent Total Aum 100 Equity AUM ETF / FOF AUM Others AUM 57.80 12.90 29.30 Individual Non-Individual Individual Non-Individual Individual Non-Individual AUM AUM AUM AUM AUM AUM 50.86 6.94 1.29 11.61 8.21 21.09 Regular
Slide 20: AUM Journey: A Structural Growth Story
AUM Journey A diversified play in wealth management. A structural Growth story Equity Equity AUM +90% AUM <50% Prudent’s AUM grew at 83,384 CAGR of 39%, versus 93.5% 96.2% Industry’s 19% from 92.6% 85.8% 87.7% March 2021-2024 83.5% 82.6% 74.6% 56,189 71.2% 65.3% 49,473 53.9% Prudent’s Equity AUM gre
Slide 21: Decadal Growth
Decadal Growth A diversified play in wealth management. ₹Cr. Partners Customers Total AUM (₹ cr) 1686669 83384 29605 2731 184297 3772 FY14 FY24 FY14 FY24 FY14 FY24 Equity AUM (₹ cr) Monthly SIP Book (₹ cr) Number of Live SIPs 726 2507756 80230 2033 25 141648 FY14 FY24 FY14 FY24 FY14 FY24 20
Slide 22: Prudent Equity AUM growing double that of Industry
Prudent Equity AUM growing A diversified play in wealth management. double that of Industry 1.98 1.95 1.96 754 Values Rebased to 100 703 1.57 620 1.49 562 Growing at a 1.30 489 500 498 pace higher 423 436 414 1.05 382 than the 336 356 industry led by 290 315 233 258 256 259 291 organic and 196 203 2
Slide 23: How Prudent Bridged the Gap with Biggies in the last Decade
How Prudent Bridged the GAP A diversified play in wealth management. with Biggies in the last Decade Peers commission income no of times to Prudent Peers in FY13 in FY23 Citibank N.A. 5.5 0.2 HDFC Bank Limited 5.4 1.1 Hongkong & Shanghai Banking Corporation Ltd 4.8 0.2 NJ Indiainvest Pvt Ltd 4.2 2.6
Slide 24: Vintage of Prudent AUM vs Industry
Vintage of Prudent AUM vs A diversified play in wealth management. Industry Prudent Individual Equity AUM staying invested for more than Categorization of Individual Equity AUM as per Vintage 24 months is higher by 640 basis points Versus 70.0% Industry 61.6% 60.0% 55.2% 50.0% 40.0% 30.0% 26.8% 21.8
Slide 25: Factors Behind AUM Growth
Factors Behind AUM Growth A diversified play in wealth management. SIPs providing Stability to Net Flows Contribution of Net Sales & M2M in AUM Movement (Ex-Acquisitions) ▪ Gross Equity Flows through SIPs is providing stability to net sales with the same growing at a CAGR of 22% FY19-24 & now almost
Slide 26: Prudent Becomes Fourth Largest Mutual Fund Distributor in FY23
Prudent Becomes Fourth Largest A diversified play in wealth management. Mutual Fund Distributor in FY23 Total Commission (Lacs) Name of the ARN Holder MFDs covered under this definition includ 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 the following who fulfill any of the below Commissi
Slide 27: 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 28: MFDs remain Backbone for the company's journey so far
MFDs remain Backbone for the A diversified play in wealth management. company’s journey so far Our Approach No. of MFDs ▪ No of individual ARN in India stood at 1,43,010 with every Client fifth MFD working with 29605 Prudent. 26949 23763 ▪ It provides value proposition 29,605 16853 to the AMCs to so
Slide 29: Productivity of MFD Increases Once they Cross the Rs 10 Crore Mark
Productivity of MFD Increases Once they Cross the Rs 10 Crore A diversified play in wealth management. Mark Average Value of New Sips Added Particulars Average Gross Sales Per Client Average AUM per Client Per Client MFDs with AUM more than 10 crore 143069 4154 892889 MFDs with AUM less than 10 cror
Slide 30: MFDs - Diversity bring Sustainability & Stability
MFDs- Diversity bring A diversified play in wealth management. Sustainability & Stability Deconcentrating The MFDs share MFDs Combining with Insurance 2.73% 11,331 29,605 Insurance POS 14.31% 8.94% Top 100 Top 50 Top 10 MFDs Common for Insurance Value proposition offered to MFDs helps increase the M
Slide 31: Embedding Technology - Multiple Platforms for diverse needs
Embedding Technology-Multiple A diversified play in wealth management. Platforms for diverse needs 0PRUDENTCONNECT0 0POLICYWORLD0 _WISEBASKET_ 0(MFD CONNECT)0 Online insurance platform Online facility to invest in PrudentConnect is a virtual offering completely paperless multiple model stock portfol
Slide 32: 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 33: A SIP Led Equity AUM Bringing Stability to Net Flows
A SIP Led Equity AUM Bringing A diversified play in wealth management. Stability to Net Flows ▪ As on March-24, AUM from the SIP led AUM provides continuity mutual fund business stood at Rs. Gross Inflow via SIPs (₹ cr) SIP AUM as % of Equity AUM 83,384 Cr with 96.2% of total AUM being equity-orient
Slide 34: Statistics on Systematic Investment Plans (SIPs)
Statistics on Systematic A diversified play in wealth management. Investment Pan (SIPs) ₹Cr. Customer Profiling: Below 35 Age Group How Many Investors in Prudent do SIPs Investors Helping to Build Granular Book No. of No of Live Live SIP AUM Per Particulars Total AUM Equity Non-Equity 6% Investors S
Slide 35: 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. Total Revenue from Operations (₹ Cr) Total Operating Expenditure (₹ Cr) ▪ Despite the regulatory changes*, Tot
Slide 36: Financials At Glance
Financials At Glance A diversified play in wealth management. In ₹ cr. ₹Cr. Total AUM (₹ cr) Revenue & YoY Growth % EBITDA & Margin (%) 28.4% 83384 57.1% 25.6% 24.0% 21.6% 35.6% 19.9% 56189 31.7% 17.2% 49473 22.1% 5.9% 193 10.4% 173 30846 805 21247 19389 611 115 451 222 235 287 38 47 62 FY19 FY20 FY
Slide 37: 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 38: Shareholding Pattern
Shareholding Pattern Prudent Corporate Advisory Services Limited
Slide 39: Shareholding pattern
Shareholding pattern A diversified play in wealth management. Top Institutions Holdings SHAREHOLDING PATTERN –31st March 2024 Institution Names As a % to Overall Shareholding DSP Investment Managers Pvt Ltd 8.00% 19.27% Zulia Investments Pte Ltd (Temasek Group) 7.90% 22.30% 58.43% HSBC Asset Managem
Slide 40: Q4FY24 & FY24 Results Highlights
Q4FY24 & FY24 Results Highlights Prudent Corporate Advisory Services Limited
Slide 41: FY24 Result Highlights
FY24 Result Highlights A diversified play in wealth management. Monthly SIP Book grew by Equity Gross Sales in FY24 Crossed ₹833 billion AUM 40.0% in March to grew by 42% YoY to Rs mark ₹726 crore providing 16,385 crores. strong growth visibility Standalone revenue up by Standalone EBITDA up by Stan
Slide 42: FY24 Result Highlights - Consolidated
FY24- Result Highlights- A diversified play in wealth management. Consolidated In ₹ cr. Revenue & YoY Growth % EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 805.1 28.4% 24.0% 611.3 19.1% 17.2% 31.7% 18.9% 11.4% 193.1 138.7 173.3 116.7 FY23 FY24 FY23 FY24 FY23 FY24 41
Slide 43: Q4FY24 - AUM change
Q4FY24- AUM change A diversified play in wealth management. Closing AUM as of March 2024 Vs Yearly Average AUM Quarterly Avg AUM (₹ crs) of FY24 (₹ crs) 71984 80889 83384 56242 19.2% QoQ 69944 YoY 43.8% 12.4% Yearly Avg AUM of FY24 Closing AUM as of March 2024 Q4FY23 Q3FY24 Q4FY24 Closing AUM is 119
Slide 44: Equity AUM Movement
Equity AUM Movement A diversified play in wealth management. Change in Equity AUM YoY (₹ crs) Change in Equity AUM QoQ (₹ crs) 4.6% 3.1% 41% 12% 43
Slide 45: Q4FY24 - Equity & SIP
Q4FY24- Equity & SIP A diversified play in wealth management. Market Share in Equity AUM Ex ETF of Prudent Equity AUM % of Total AUM 95.7% 96.2% 2.52% 2.52% 2.46% 93.5% Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Monthly SIP Flow (₹ cr)and Market Share (%) Equity Gross SIP Inflow(₹ cr) as a % of Gross
Slide 46: Emerging Segment - Insurance
Emerging Segment- Insurance A diversified play in wealth management. Life Insurance Life Insurance 183.0 Crore 40.6 Crore Total Premium Fresh Premium ₹ 221.3 Crore ₹ 52.4 Crore General Insurance General Insurance 38.3 Crore 11.8 Crore Life Insurance Other Key Data (as on March 2024): 30.9 Crore Tota
Slide 47: Consolidated - FY24
Consolidated – FY24 A diversified play in wealth management. Particulars (in Crores) 4QFY24 3QFY24 QoQ (%) 4QFY23 YoY (%) FY23 FY24 YoY (%) Total Commission and Fee Income from (a+b+c+d) 237.6 208.4 14.0% 175.6 35.3% 604.8 799.1 32.1% Distribution of Mutual Fund Products-Trail Revenue (a) 182.0 165.
Slide 48: Standalone - FY24
Standalone – FY24 A diversified play in wealth management. Particulars (in Crores) 4QFY24 3QFY24 QoQ (%) 4QFY23 YoY(%) FY23 FY24 YoY (%) Quarterly Average AUM 80889 71984 12.4% 56242 43.8% 52865 69944 32.3% Total Commission and Fee Income from (a+b) 190.6 172.3 10.6% 137.0 39.1% 516.5 664.4 28.6% Di
Slide 49: Thank You
Thank You Prudent Corporate Advisory Services Ltd Mr. Parth Parekh Mr. Manoj Saha parth.parekh@prudentcorporate.com prudent@dickensonworld.com Mob: 9819878413 Mob: 9819860835 www.prudentcorporate.com
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