Prudent Corporate Advisory Services reports 25% jump in net profits; shares soar 17%!

The Smallcap retail wealth management firm reports robust Q4 earnings as revenue grew 23% YoY to Rs 137 crore for the quarter ended March 2023, beats D-street expectations.    

Started in 2000, Prudent is now one of India's fastest growing financial services Group. The company commenced operations at the turn of the millennium, with mutual fund distribution. Since then, it has expanded to offer financial services and products such as Mutual Funds, Insurance, Equities, Bonds, PMS-AIF, Fixed Income Products, Properties and Loan Products. With the market capitalisation of about Rs 4,000 crore, it is present across 105 branches in over 20 states along with its strong digital presence.  

In its latest quarterly result, the retail wealth management firm has reported standalone net profit at Rs 20 crore in March 2023, a 25% YoY jump from Rs 16 crore in March 2022. Meanwhile, revenue rose 23% YoY to Rs 137 crore for Q4FY23 from Rs 111 crore in the same quarter of the previous fiscal.   

For the full financial year 2022-23, the revenue grew 36% to Rs 611 crore, mainly led by the robust growth of 33% in average yearly Assets Under Management (AUM) in the mutual fund vertical, along with insurance revenues almost getting doubled. Net profit stood at Rs 117 crore, a robust jump of 45% compared to Rs 80 crore in FY22.

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The company said that growth in AUM was led by robust systematic investment plan (SIP) flows and acquisition of Karvy’s mutual fund folios. The company, which distributed a wide range of financial products, reported a cash flow from operations of Rs 127 crore during the year.  

Commenting on the results, Mr Sanjay Shah, Managing Director of Prudent said, “Our FY23 results reflect the determined efforts of the entire Prudent team. We achieved three key milestones during FY23. Firstly, our Mutual fund vertical crossed Rs. 500 crore in revenues. Secondly, our cash flow from operations exceeded Rs. 100 crore. And finally, our insurance vertical crossed 10% of the overall revenues.”  

On Thursday, the PRUDENT shares are up 17% to hit the intraday high of Rs 1028.80 on the exchanges.