Prudent Corporate Advisory Services surged 13.99% to Rs 793.75 after the company's consolidated net profit soared 41.1% to Rs 27.60 crore on a 36.7% jump in total income to Rs 148.80 crore in Q2 FY23 over Q2 FY22.
The company said that the PAT growth was lower than operating profit growth, led by higher depreciation due to the amortisation of payment for acquiring mutual fund (MF) assets of Karvy in November 2021 & lower other income.
Revenue from operations jumped 39.7% to Rs 147.59 crore in quarter ended 30 September 2022 from Rs 105.66 posted in Q2 FY22.
The growth in revenue was led by strong AUM growth in the mutual fund business & 80% year on year growth in the emerging insurance segment. The equity mix in overall AUM improved by 343 bps to 94.1% YoY which aided growth in total revenue.
Operating profit grew by 58.4% YoY to Rs 40.2 crore in Q2 FY23. Operating profit growth was higher than revenue growth led by operating leverage. Operating profit margin increased to 27.2% in Q2 FY23 as compared to 24% reported in Q2 FY22.
Equity asset under management (AUM) soared 40.5% to Rs 49,673 crore, led by strong net sales and acquisition of MF assets of Karvy. The company strengthened its position in equity AUM market share (Ex-FTS) by 42 basis points YoY to 2.36%.
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Gross flows from systematic investment plans (SIPs) were the highest in the company's history at Rs 1,324 crore in Q2 FY23. Monthly SIPs flow as of September 2022 stood at Rs 456 crore, and company's market share increased to 3.5% in September 2022 from 3% in September 2021.
Given the strong traction on SIPs, the firm expect gross flow from SIPs of Rs 5,200 crore in FY23, which is 13% of the FY23 opening AUM, providing it a strong visibility of growth.
Sanjay Shah, chairman and managing director, said, "The 2nd quarter of FY2023 has been another quarter where Prudent has witnessed substantial growth in revenue and profitability. Healthy cash flows led to the acquisition of Mutual Fund AUM of Karvy Stock Broking in an all-cash deal in FY2022. On July 22, we continued our inorganic expansion by signing a term sheet to acquire MF AUM of iFast Financial India."
Shirish Patel, CEO & whole-time director, said, "We are delighted to announce that Prudent Corporate Advisory Services has been ranked as the second-largest non-banking mutual fund distributor based on commissions earned thanks to the efforts of our channel partners & our team. As per CAMS September 2022 ranking, we are the 3rd largest in total AUM in retail and 5th largest in total folios.
Prudent Corporate Advisory Services is a retail wealth management services group based in India. The company is among the top mutual fund distributors regarding assets under management (AUM) and commission received. The company offers a technology enabled, comprehensive investment and financial services platform with end-to-end solutions critical for financial products distribution and presence across both online and offline channels.
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