Prudent Corporate Advisory Services Limited · NSE:PRUDENT
Prudent Corporate Advisory Services — Q3 FY2023 Earnings Presentation
43 slides from Prudent Corporate Advisory Services's earnings presentation, Jan 23, 2023
Slide 1: Exchange filing cover letter
PCASL/59/2022-23 Date: 23.01.2023 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 Q3 & 9M FY2023
Investor Presentation Q3 & 9M 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 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 ₹ 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. Mutual Fund Penetration is quite low in India Overall MF AUM Trajectory (₹ in trn) Active Equity AUM Trajectory (₹ in trn) compared to other countries 162 120 MF AUM to GDP (LHS) 77 Equity AUM to GDP (RHS) 80 81 77 68 67 63 63 66 48 40 38 1
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 40.76 Equity AUM ETF / FOF AUM Others AUM 65% 35% 21.03 5.42 14.31 Individual Non-Individual Individual Non-Individual Individual Non-Individual AUM AUM AUM AUM AUM AUM 18.72 2.31 0.54 4.88 4.25 10.06
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 100 Equity AUM ETF / FOF AUM Others AUM 51.59 13.30 35.10 Individual Non-Individual Individual Non-Individual Individual Non-Individual AUM AUM AUM AUM AUM AUM 45.92 5.67 1.32 11.97 10.42 24.68 Regular
Slide 19: 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 20: Prudent Equity AUM growing 2x of industry
Prudent Equity AUM growing A diversified play in wealth management. double that of Industry Values Rebased to 100 Equity AUM-Industry Equity AUM-Prudent 489 500 Growing at 423 436 414 2x of industry growth rate 336 led by organic 290 258 256 and inorganic 233 244 196 203 206 217 225 215 route 173 18
Slide 21: Fifth Largest Mutual Fund Distributor in terms of Commission received
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 22: 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 23: 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 ▪ MFD market share for Prudent as of March 2022 Client stands at 20.4%. 23763 16853 ▪ It provides value proposition 14007 to the AMCs to source 11620 26,198 8378 business from reta
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: Shareholding Pattern
Shareholding Pattern Prudent Corporate Advisory Services Limited 30
Slide 33: Shareholding pattern
Shareholding pattern A diversified play in wealth management. Top Institutions Holdings SHAREHOLDING PATTERN –31st December 2022 Institution Names As a % to Overall Shareholding HSBC Asset Management Company Ltd 2.49 DSP Investment Managers Pvt Ltd 1.82 29.56% Kotak Mahindra Asset Management Company
Slide 34: Q3 & 9MFY23 Results Highlights
Q3 & 9MFY23 Results Highlights Prudent Corporate Advisory Services Limited 32
Slide 35: 9MFY23 Result Highlights
9MFY23 Result Highlights A diversified play in wealth management. Monthly Equity SIP Book Added 3363 MFDs in grew 29% YoY in December 9MFY23 Average AUM 9MFY23 and set to achieve to Rs 478 crores. Set to higher by 39.9% YoY our target of 5000 achieve 500 crores by fiscal end Standalone EBITDA up by
Slide 36: 9MFY23 Result Highlights - Consolidated
9MFY23- Result Highlights- A diversified play in wealth management. Consolidated In ₹ cr. Revenue & YoY Growth % EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 75.5 434.4 26.4% 25.3% 57.6 321.2 35.2% 41.0% 17.9% 17.4% 30.9% 114.8 81.4 9MFY22 9MFY23 9MFY22 9MFY23 9MFY22 9MFY23 ▪ Revenue growth of 35
Slide 37: Q3FY23 - AUM change
Q3FY23- AUM change A diversified play in wealth management. Closing AUM (₹ crs) Quarterly Avg AUM (₹ crs) 56138 39.3% 52769 3545 55495 48197 3096 51630 QoQ YoY 3333 3662 6.4% 3198 QoQ 16.5% 41979 39847# YoY 7.5% 3691 3646 32.3% 49673 52593 44535 48432 52162 36201 38288 Dec-21 Sep-22 Dec-22 FY22 Q3FY
Slide 38: Equity AUM Movement
Equity AUM Movement A diversified play in wealth management. Change in Equity AUM YoY (₹ crs) Change in Equity AUM QoQ (₹ crs) 0.9% 0.8% 5.3% 11.9% 3.5% 1.6% 37
Slide 39: Q3FY23 - Equity & SIP
Q3FY23- Equity & SIP A diversified play in wealth management. Market Share in Equity AUM Ex ETF of Prudent Equity AUM % of Total AUM 2.44% 2.44% 94.10% 93.70% 2.42% 92.40% Dec-21 Sept-22 Dec-22 Dec-21 Sept-22 Dec-22 Monthly SIP Flow (₹ cr)and Market Share (%) Equity Gross SIP Inflow(₹ cr) as a % of
Slide 40: Emerging Segment - Insurance
Emerging Segment- Insurance A diversified play in wealth management. Life Insurance Life Insurance 80.9 Crore 38.4 Crore Total Premium Fresh Premium ₹ 102.4 Crore ₹ 44.9 Crore General Insurance General Insurance 21.6 Crore 6.5 Crore Life Insurance Other Key Data (as on December 2022): 11.1 Crore Tot
Slide 41: Consolidated - Q3FY23 & 9MFY23
Consolidated- Q3FY23 & 9MFY23 A diversified play in wealth management. Particulars (in Crores) Q3FY23 Q3FY22 YoY (%) Q2FY23 QoQ (%) 9MFY23 9MFY22 YoY(%) Total Commission and Fee Income from (a+b+c+d) 156.8 123.9 26.5% 145.7 7.6% 429.3 314.1 36.7% Distribution of Mutual Fund Products-Trail Revenue (a
Slide 42: Standalone Q3FY23 & 9MFY23
Standalone Q3FY23 & 9MFY23 A diversified play in wealth management. Particulars (in Crores) Q3FY23 Q3FY22 YoY (%) Q2FY23 QoQ (%) 9MFY23 9MFY22 YoY(%) Quarterly Average AUM 55494 41979 32.2% 51630 7.5% 51579 36986 39.9% Total Commission and Fee Income from (a+b) 137.6 109.9 25.3% 127.1 8.3% 379.5 275
Slide 43: Thank You
Thank You Prudent Corporate Advisory Services Ltd Mr. Parth Parekh Mr Manoj Saha parth.parekh@prudentcorporate.com prudent@dickensonworld.com Tel: 079 40209600 (Ext No. – 460) Mob: 9819860835 www.prudentcorporate.com
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