Prudent Corporate Advisory Services Limited · NSE:PRUDENT
Prudent Corporate Advisory Services — Q3 FY2025 Earnings Presentation
50 slides from Prudent Corporate Advisory Services's earnings presentation, Jan 27, 2025
Slide 1: Filing letter to NSE and BSE for investor presentation
Date: 27.01.2025 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), Mumbai – 400 051 SCRIPT CODE: 543527 NSE EQUITY SYMBOL: PRUDENT ISIN: INE00F201020 Sub.: Investor Presentation
Slide 2: Investor Presentation - A diversified play in wealth management
= — Money through wisdom — A diversified play in wealth management Investor Presentation Certified INDIA af
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 Prudent Corporate Advisory Services
WA About Prudent Corporate Advisory Services Founded in 2003 & headquartered in Ahmedabad, Prudent Corporate Advisory Services is one of India’s fastest-growing financial services group. Today, with a team strength of 1415 highly skilled professionals and 32,457 well-trained and qualified channel pa
Slide 5: Key Management - Leadership Team
Ww Key Management Leadership Team Sanjay Shah Chairman & Managing Director Chartered Accountant with more than two decades of experience in wealth management. Holds a degree of BBA from Sardar Patel University & is admitted as a fellow member of the Institute of Chartered Accountants of India Shiris
Slide 6: Key Management - Board Members
Ww Key Management Board Members Karan Kailash Datta (Independent Director) With 10 years of experience in asset management has been associated with Goldman Sachs Securities, Goldman Sachs Asset Management & Axis Asset Management Shilpi Thapar (Independent Director) Holds a bachelor’s in law & commer
Slide 7: ₹ ₹ ₹ ▪ ₹ ▪ ▪ ₹ ▪ ▪ ▪ ₹ ▪ ▪
₹ ₹ ₹ ▪ ₹ ▪ ▪ ₹ ▪ ▪ ▪ ₹ ▪ ▪ ▪ ▪ ₹ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 8: Investor Presentation Q3FY2025
Investor Presentation Q3FY2025
Slide 9: Play on distribution of financial products
oJ Play on distribution of Pa NATURE OF REVENUE REVENUE- FREQUENCY ¥ Distribution of a Mutual Fund Products Commissio AMC Distribution of Commission from Insurance Products Insurance companies Other we Stock Brokerage/ Fee from Non-Recurring vena Broking Retail/Institution * Other Financial Products
Slide 10: Mutual Fund Distribution - A Dominant Pie of the Services
NN Mutual Fund Distribution- A Dominant Pie of the Services Mutual Funds Distribution The company follows an “open-source” distribution model, under which it distributes mutual funds of AMCs irrespective of their affiliation or size thus providing their MFDs/Clients with a large se Total AUM Equity
Slide 11: Other Financial Products - Insurance Leads the pack
Other Financial Products- Insurance Leads the pack Insurance Distribution ®@ Gennext- a wholly owned subsidiary is registered as an insurance broker for life and general insurance with IRDAI. It distributes insurance products offered by ae various life and general insurance companies in India. I © W
Slide 12: Diversification: Creating a Second Pillar of Growth
NN a 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 ™ Insurance Products asuccsciea | >>>) m Others ™ MF Products ™ Insurance Products ™ Stock Broking m Others Diversification has led to: A diversi
Slide 13: Investor Presentation Q3FY2025
Investor Presentation Q3FY2025
Slide 14: Delivering Sustained Performance
Wwe Delivering Sustained Performance Unique B2B2C business model bridging the gap between AMCs, MFDs and retail customers A Strong Platform + ran Boho A growing & underpenetrated MF industry ee Two decades of experience in retail wealth management Technology Embedded Approach A complete Eco System K
Slide 15: Industry
₹ ₹ Source: RBI, AMFI, Axis Capital
Slide 16: Indian mutual fund industry growth
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 61% 24509 44% 46% 3122 Mar-14 Mar-17 Mar-24 Source: RBI, AMFI
Slide 17: Individual Equity AUM: A Focus Area for Prudent
Individual Equity AUM: A Focus Area for Prudent Total AU! 66.93 Py Equity AUM 40.56 ETF / FOF AUM 8.23 72.90% 2710% Others AUM 18.14. Non-Individual AUM 7.24 Non-Individual AUM 4.87 Individual AUM 35.69 Regular AUM 0.29 Direct AUM 0.70 23.00% Non-Individual AUM 13.71 Individual AUM 4.42 Regular AUM
Slide 18: Individual Equity AUM: A Focus Area for Prudent
NZ a Individual Equity AUM: A Focus Area for Prudent 41.06 Regular AUM Direct AU! 12.27 Value rebased to 100 Individual Non-Individual Individual Regular AUM Direct AUM Non-Individual AUM 20.49 Regular AUM 3.92 Direct AUM 2.69, ‘As on 31* December 2024 A diversified play in wealth management 7
Slide 19: AUM Journey - A structural Growth story
Wwe a AUM Journey A structural Growth story mmm Total AUM i Equity HE Equity to Total AUM 290% 83,384 66 Prudent’s AUM grew at CAGR of 39%, versus Industry's 19% from March 2021-2024 99 9 93.5% Equity AUM <55% {4 Prudent’s Equity AUM grew at CAGR of 44%, from March 2021-2024 99 From 1.84 lacs client
Slide 20: Growth in key metrics FY14 to FY24
₹ 1686669 83384 29605 2731 184297 3772 FY14 FY24 FY14 FY24 FY14 FY24 ₹ ₹ 726 80230 2507756 2033 25 141648 FY14 FY24 FY14 FY24 FY14 FY24
Slide 21: Prudent versus industry top 1000 MFDs
₹ ₹ ₹ ₹ Source : AMFI, HDFC AMC’s DRHP, Prudent * Industries Top 1000 MFDs excluding Banks ** as certified by independent chartered accountants, M/s Pramodkumar Dad & Associates
Slide 22: Top 1000 distributors segmented by AUM rank
₹ The top 1000 distributors, segmented into five equal groups by AUM rank. Industries Top 1000 MFDs excluding Banks as certified by independent chartered accountants, M/s Pramodkumar Dad & Associates.
Slide 23: Overcoming Hurdles: How Prudent Drives MFD's Productivity
ww Overcoming Hurdles How Prudent Drives MFD’s Productivity Lack of Integrated Tools Increases manual workload for MFDs H Inadequate Product Offerings ---- Restricts cross- selling opportunities. Slow Query | Resolution + Reduces client satisfaction and trust Insufficient Client Insights Limits tail
Slide 24: Vintage of Prudent AUM vs Industry
WA a Vintage of Prudent AUM vs Industry Prudent Individual Equity AUM staying invested for more than 24 months is higher by 580 basis points Versus Industry = Prudent 60.8% = Industry 55.0% 27.3% 23.1% 161% 17% Holding Period of < 12 Months Holding Period of 12-24 Months Holding Period of > 24 Month
Slide 25: 1.96 1.98 1.93 1.92 1.55 1.47 1.29 1.05
1.96 1.98 1.93 1.92 1.55 1.47 1.29 1.05
Slide 26: Distributor comparison by bank and broker
ICICI Bank Limited 330 50 Kotak Mahindra Bank Limited 280 40 Axis Bank Limited 270 80 Standard Chartered Bank 250 20 Hongkong & Shanghai Banking Corporation Ltd. 240 20 ICICI Securities Limited 210 70 Bajaj Capital Ltd. 130 20 ICICI Bank Limited 330 80 Kotak Mahindra Bank Limited 510 70 Axis Bank Li
Slide 27: Factors Behind AUM Growth
we Factors Behind AUM Growth tn 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 growing at a CAGR of 22% FY19-24 & now almost every second rupee of flows comes @ The AUM moved by
Slide 28: Prudent Becomes Fourth Largest Mutual Fund Distributor in FY24
Wwe Prudent Becomes Fourth Largest Mutual Fund Distributor in FY24 1042023 Commission of MFDs per AMFI Data Growth Commission as earned by Prudent Growth No. of MFDs Overall Rank of Prudent Prudent Sharing Commission Non-Bank Rank of Prudent 500041 36.71% 9921 65.42% 732 #12 198% HG 854974 70.98% 21
Slide 29: MFDs remain Backbone for the Company's Journey
Ww MFDs remain Backbone for the Company’s Journey so Far in has led to pation and a Our value propo: increased parti long-standing relationship with MFDs ®@ No of individual ARN in India stood at 1,58,369* with every fifth MFD working with Prudent. @ It provides value proposition to the AMCs to sour
Slide 30: Productivity of MFD Increases
Productivity of MFD Increases < S No of MFDs Average Gross Sales Per Client* Average Value of New SIPs Added Average AUM per Client* Per Client* 28040 892889 143069 pon 2948 52395 326944 “se i i MFDs>10 crore = MFDs < 10 crore MFDs>10 crore — MFDs < 10 crore MFDs>10 crore = MFDs < 10 crore MFDs>10 c
Slide 31: Insurance POS and top MFDs
Top 100 MFDs Top 50 Common for Insurance 2.87% Top 10 12,939 32,457 Insurance POS 14.58% 9.24%
Slide 32: Embedding Technology - Multiple Platforms for diverse needs
We Embedding Technology- Multiple Platforms for diverse needs Online insurance platform offering Online fecity to invest in multiple PrudentConnect is a virtual office completely paperless transactions model stock portfolios which are for MFDs which provides end-to- for insurance solutions aligned w
Slide 33: Geographical presence - Playing on Tier I & II cities
Ww Geographical presence - Playing on Tier | & Il cities © Prudent is one of the very few national distributors (non-bank) with a presence in the B-30 market catering to retail investors. This geography is under penetrated and provides an opportunity to grow. Our INVESTORS are present across INDIA e
Slide 34: A SIP Led Equity AUM
NZ A SIP Led Equity AUM Bringing Stability to Net Flows ®@ Ason Dec-24, AUM from the mutual fund business stood at Rs. 1,06,271 Cr with 96.6% of total AUM being equity-oriented. ® Since individual investors tend to stay invested for longer periods and prefer equity-oriented schemes, Prudent banks on
Slide 35: Statistics on SIP investors and customer profiling
Statistics on - How Many Investors in Prudent do SIPs Customer Profiling: Below 35 Age Group Investors Helping to Build Granular Book No Live SIP 6% Particulars No. of Total Equity Non- No of Live SIP AUM Per monly 1SIP Investors AUM Equity Live SIP Amount Investor 1% 0 <25 3.2% 3.4% 3.3% 7% A 4% 2-
Slide 36: All Roads Lead to Profitability
NN All Roads Lead to Profitability from Operations has grown at a CAGR of 29% from FY19-24. 805 612 ® Total operating expenditure has grown at a CAGR - en - of 27% from FY19-24. Since, revenues has grown 451 6 faster than operating expenses, operating margins 235 287 185 188 225 has expanded from 16
Slide 37: Financials At a Glance
WA Financials At Glance In& cr. tne MEE Revenue —-Growth MEEEEBITDA — —-EBIDTA Margin % 83384 4oag 88 30846 21247 19389 a FYI9. FY20. 0 FY21.—FY22.— F238. FY24 FYI9. FY20. 0 FY21.—FY22.— F238. FY24 FYI9. FY20. 0 FY21.—FY22.— F238. FY24 ms PAT 335 282 28.7% 28.8% 253% 24.8% 19.4 10 = a | FyI9 = FY20.
Slide 38: Strategic Acquisition of Karvy MF AUM
a 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 Eq uity Component for the acquisition/transfer of
Slide 39: Investor Presentation Q3FY2025
Investor Presentation Q3FY2025
Slide 40: Shareholding pattern
Shareholding pattern = Promoters Non-Institutions Institutions 38.40% Zulia Investments Pte Ltd (Temasek Group) DSP Investment Managers Pvt Ltd Kotak Mahindra Asset Management Company Ltd HSBC Asset Management Company Ltd Canara Robeco Asset Management Company Ltd Tata AIA Life Insurance Nippon Life
Slide 41: Investor Presentation Q3FY2025
Investor Presentation Q3FY2025
Slide 42: Q3 FY25 Highlights
Q3 FY25 Crossed 21000 billion AUM mark Monthly SIP Book grew by 44.0% YoY in Dec to 935 crore up by 35.8% yoy | up by 31.8% yoy providing strong growth visibility Consolidated revenue Consolidated EBITDA A diversified play in wealth management | 4
Slide 43: Q3 FY25 - Result Highlights - Consolidated
Q3 FY25 - Result Highlights- Consolidated In& cr. 285.0 209.9 50.0 65.9 48,2 35.7 » Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 A diversified play in wealth management !
Slide 44: Q3 FY25 - AUM Change
NN 03 FY25 - AUM Change 106271 105546 105546 74% QoQ 71984 voy 3.4% 46.6% 98995 102057 DAILY AVERAGE AUM FOR CLOSING AUM AS OF a2Fy25 a3ry25 a3ry24 3FY25 9MFY25 DECEMBER 2024 A diversified play in wealth management
Slide 45: AUM movement Dec-23 to Dec-24
₹ ₹ 3600 16606 102704 103965 102704 -4860 3.5% -4.7% 11654 74445 22.3% 15.7% Dec-23 Net Sales M2M Impact Dec-24
Slide 46: Value as on Dec-24 not included in above number
₹ ₹ Value as on Dec-24 stood at ₹ 143 crores which is not included in the above number. This number is reported on actual realization basis.
Slide 47: Emerging Segment - Insurance
Wwe Emerging Segment - Insurance Total Premium = 152.2 crore [ [ Life Insurance = 115.0 Crore = 37.2 Crore General ad Life Insurance = 20.0 Crore General Soar] ™€) Fresh Premium = 32.8 crore = 12.8 Crore Total Commission = 28.6 crore ( ( Life Insurance = 17.5 Crore General Insurance = 11.1 Crore For
Slide 48: Consolidated - Q3 FY25
Consolidated - Q3 FY25 Total Commission and Fee Income from (a+b+c+d) 282.7 284.5 -0.6% 208.4 35.7% 814.9 561.4 45.2% Distribution of Mutual Fund Products-Trail Revenue (a) 2421 234.3 165.3 681.6 455.6 Distribution of Insurance Products (b) 286 33.9 229) 88.6 13 Stock Broking and Allied Services (c)
Slide 49: Standalone - Q3 FY25
won Standalone - Q3 FY25 Quarterly Average AUM 105546 102057 3.4% 71984 46.6% 98995 66322 49.3% Total Commission and Fee Income from (a+b+c) 253.8 250.4 14% 178.4 42.3% 725.8 489.91 48.1% Distribution of Mutual Fund Products (a) 2418 2341 165.11 681.0 455.2 Other Financial and Non Financial Products
Slide 50: Contact details
prudent@dickensonworld.com parth.parekh@prudentcorporate.com www.prudentcorporate.com
Prudent Corporate Advisory Services — Q3 FY2025 Earnings Presentation on 6ix