Prudent Corporate Advisory Services Limited · NSE:PRUDENT
Prudent Corporate Advisory Services — Q2 FY2024 Earnings Presentation
51 slides from Prudent Corporate Advisory Services's earnings presentation, Oct 26, 2023
Slide 1: Exchange filing cover letter
PCASL/54/2023-24 Date: 26.10.2023 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.: Inves
Slide 2: Investor Presentation Q2FY2024
Investor Presentation Q2FY2024 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 ₹ 500 bn in Expansion into other financial products Ecosystem Growth 16 years around 6 years Partnership & Penetration 2022-24 The Early Years 2020 - 2021 2017 - 2019 2007 - 2016 AUM – ₹ 690 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 28% FY19-23 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 41% FY20-23 ▪ Gennext- a wholly owned subsidiary is registered as an insurance broker for life and general insurance with IRDAI. It 15.0 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” Stock FY20 FY23 Broking, Stock 8.2% Broking Others, ▪ Increasing share of Insurance 1.0% 3.6% products from 7% in FY20 to 12% in FY23 Others Insurance Insurance 2.5% Products Products, 11.6% 7.2% ▪ Insuran
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. Overall MF AUM Trajectory (₹ in trn) Active Equity AUM Trajectory (₹ in trn) Asset Allocation of Individual Investors Skewed towards Equity Assets 162 4% 2% 77 15% 79% 38 19 21 9 Equity Oriented Schemes Debt Oriented Schemes Liquid/ Money M
Slide 17: Industry Tailwinds
Industry Tailwinds A diversified play in wealth management. 77 66 43 34 36 36 36 27 23 5 6 3 China India Korea Brazil France South Africa Japan Germany World UK Canada USA 16
Slide 18: Industry Tailwinds: Higher Indian Savings Rate
Industry Tailwinds A diversified play in wealth management. Higher Indian Savings Rate Bodes Well for Mutual Funds India’s savings rate is higher than the global average of 26.9% in 2021 16.5 United Kingdom 44.7 18 29.3 China* United States* India 29.8 Thailand 22.3 57.5 Hong Kong 20.1 Singapore Sou
Slide 19: Industry Tailwinds: India - The Next Decade
Industry Tailwinds A diversified play in wealth management. India – The Next Decade India’s GDP* trend in USD Tn 6th USD tn Every successive trillion dollar GDP is 2 years Likely to take lesser number of years 9.1% 5th USD tn 3 years 6.1 8.7% 4th USD tn 5.2 3 years 9.1% 3rd USD tn 7 years 4.0 2nd US
Slide 20: Individual Equity AUM: A Focus Area for Prudent
Individual Equity AUM: A Focus A diversified play in wealth management. Area for Prudent Total Aum 46.58 Equity AUM ETF / FOF AUM Others AUM 67% 33% 25.20 5.94 15.44 Individual Non-Individual Individual Non-Individual Individual Non-Individual AUM AUM AUM AUM AUM AUM 22.43 2.77 0.59 5.34 4.37 11.06
Slide 21: 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 54.10 12.75 33.15 Individual Non-Individual Individual Non-Individual Individual Non-Individual AUM AUM AUM AUM AUM AUM 48.15 5.95 1.28 11.48 9.39 23.76 Regular
Slide 22: 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 93.5% CAGR of 35%, versus 92.6% 87.7% Industry’s 12% from 85.8% 83.5% 56,189 82.6% March 2021-2023 74.6% 71.2% 49,473 65.3% 53.9% Prudent’s Equity AUM grew 48.8% 30846
Slide 23: Prudent Equity AUM growing double that of Industry
Prudent Equity AUM growing A diversified play in wealth management. double that of Industry 1.95 1.96 Values Rebased to 100 489 500 498 1.57 423 436 414 1.49 Growing at 1.30 336 290 almost 2x of 258 1.05 233 256 259 industry 203 244 173 180 182 196 184 206 217 225 215 equity AUM 147 159 151 124 131
Slide 24: 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 25: 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 880 basis points Versus 70.0% Industry 61.0% 60.0% 52.2% 50.0% 40.0% 30.0% 24.8% 23.0
Slide 26: 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 25% FY18- The AUM moved
Slide 27: 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 28: 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 29: 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 September Client 2023 stands at 21.4% #. 26949 23763 ▪ It provides value proposition 16853 to the AMCs to source 14007 28,215 11620 business fr
Slide 30: 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 134585 2388 727855 MFDs with AUM less than 10 cror
Slide 31: MFDs - Diversity bring Sustainability & Stability
MFDs- Diversity bring A diversified play in wealth management. Sustainability & Stability Deconcentrating The MFDs share MFDs Combining with Insurance 2.83% 9924 28215 14.40% Insurance POS 8.84% Top 100 Top 50 Top 10 MFDs Common for Insurance Value proposition offered to MFDs helps increase the MFDs
Slide 32: 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 33: 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 34: 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-23, 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 56,189 Cr with 93.5% of total AUM being equity-orient
Slide 35: Statistics on Systematic Investment Plans (SIPs)
Statistics on Systematic A diversified play in wealth management. Investment Pan (SIPs) ₹Cr. How Many Investors in Prudent do SIPs Bucketing of our Overall AUM as per Experience of Investor with Prudent 4.4% Pre & Post Particulars As a % to Overall AUM Covid 24.4% Before 1st April 2014 20.1% No Live
Slide 36: 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 Amount AUM Per Investor >0 <25 6.0% 3.6% 3.5% 3.9% 7.0% 6.4% 124340 25 to 35 16.8% 12.0% 14.0% 6.9
Slide 37: 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 38: Financials At Glance
Financials At Glance A diversified play in wealth management. In ₹ cr. ₹Cr. Revenue & YoY Growth % EBITDA & Margin (%) PAT & Margin (%) 57.1% 28.4% 25.6% 21.6% 19.1% 35.6% 19.9% 173 17.8% 17.2% 15.8% 22.1% 10.4% 5.9% 11.9% 115 611 9.5% 117 451 80 235 287 62 45 222 38 47 21 28 FY19 FY20 FY21 FY22 FY2
Slide 39: 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 40: Shareholding Pattern
Shareholding Pattern Prudent Corporate Advisory Services Limited
Slide 41: Shareholding pattern
Shareholding pattern A diversified play in wealth management. Top Institutions Holdings SHAREHOLDING PATTERN –30th September 2023 Institution Names As a % to Overall Shareholding DSP Investment Managers Pvt Ltd 7.57% 22.09% HSBC Asset Management Company Ltd 3.10% 19.48% White Oak Capital Management
Slide 42: Q2FY24 & 1HFY24 Results Highlights
Q2FY24 & 1HFY24 Results Highlights Prudent Corporate Advisory Services Limited
Slide 43: 1HFY24 Result Highlights
1HFY24 Result Highlights A diversified play in wealth management. Monthly SIP Book grew by Equity Gross Sales in Crossed ₹690 billion AUM 30.5% in September to 1HFY24 grew by 22% YoY to mark ₹595 crore providing Rs 6866 crores. strong growth visibility Standalone revenue up by Standalone EBITDA up b
Slide 44: Q2FY24 Result Highlights - Consolidated
Q2FY24- Result Highlights- A diversified play in wealth management. Consolidated In ₹ cr. Revenue & YoY Growth % EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 190.0 27.2% 147.6 22.7% 18.7% 16.0% 28.8% 10.2% 40.2 7.4% 43.2 30.4 27.6 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 43
Slide 45: Q2FY24 - AUM change
Q2FY24- AUM change A diversified play in wealth management. Closing AUM as of September 2023 Vs Quarterly Average Quarterly Avg AUM (₹ crs) AUM of Q2FY24 (₹ crs) 66584 58899 69127 51630 66584 3.8% QoQ YoY 13.0% 29.0% Quarterly Avg AUM of Q2FY24 Closing AUM as of September 2023 Q2FY23 Q1FY24 Q2FY24 C
Slide 46: Equity AUM Movement
Equity AUM Movement A diversified play in wealth management. Change in Equity AUM YoY (₹ crs) Change in Equity AUM QoQ (₹ crs) 0.8% 8.4% 2.4% 22.6% 8.6% 45
Slide 47: Q2FY24 - Equity & SIP
Q2FY24- Equity & SIP A diversified play in wealth management. Market Share in Equity AUM Ex ETF of Prudent Equity AUM % of Total AUM 2.51% 94.8% 2.47% 2.46% 94.1% 93.8% Sep-22 Jun-23 Sep-23 Sep-22 June-23 Sep-23 Monthly SIP Flow (₹ cr)and Market Share (%) Equity Gross SIP Inflow(₹ cr) as a % of Gros
Slide 48: Emerging Segment - Insurance
Emerging Segment- Insurance A diversified play in wealth management. Life Insurance Life Insurance 95.4 Crore 29.8 Crore Total Premium Fresh Premium ₹ 125.6 Crore ₹ 39.6 Crore General Insurance General Insurance 30.2 Crore 9.8 Crore Life Insurance Other Key Data (as on September 2023): 14.8 Crore To
Slide 49: Consolidated - Q2FY24 & 1HFY24
Consolidated - Q2FY24 & 1HFY24 A diversified play in wealth management. Particulars (in Crores) 2QFY24 1QFY24 QoQ (%) 2QFY23 YoY (%) 1HFY24 1HFY23 YoY (%) Total Commission and Fee Income from (a+b+c+d) 188.6 164.4 14.7% 145.7 29.4% 353.0 272.5 29.6% Distribution of Mutual Fund Products-Trail Revenue
Slide 50: Standalone - Q2FY24 & 1HFY24
Standalone - Q2FY24 & 1HFY24 A diversified play in wealth management. Particulars (in Crores) 2QFY24 1QFY24 QoQ (%) 2QFY23 YoY (%) 1HFY24 1HFY23 YoY (%) Quarterly Average AUM 66584 58899 13.0% 51630 29.0% 63263 49882 26.8% Total Commission and Fee Income from (a+b) 157.5 143.9 9.4% 127.1 24% 301.4 2
Slide 51: 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
Prudent Corporate Advisory Services — Q2 FY2024 Earnings Presentation on 6ix