Prudent Corporate Advisory hit life high as Q2 PAT jumps 69% YoY

Prudent Corporate Advisory Services soared 11.38% to Rs 3,022.95 after the company's consolidated net profit climbed 69.36% to Rs 51.52 crore on 50.54% jump in revenue from operations to Rs 286.08 crore in Q2 FY25 over Q2 FY24.

The revenue growth was driven by 53% increase in quarterly average AUM in the mutual fund segment, coupled with a 36% growth in revenues from non-mutual fund products.

Profit before tax for the second quarter of FY25 stood at Rs 69.31 crore, up 70.76% from Rs 40.59 crore reported in same quarter last year.

Operating profit grew by 59% YoY to Rs 68.7 crore during the quarter. Operating margin improved to 24% in Q2 FY25 as compared to 22.7% recorded in the corresponding quarter previous fiscal.

Closing AUM was Rs 1,07,463, up 55% YoY fueled by mark-to-market (M2M) gains as markets saw a strong broad-based rally. The M2M impact added Rs 28,619 crore to AUM over the past twelve months.

Systematic Investment Plan (SIP) book grew by 47% YoY in September to Rs 874 crore. Prudents market share of SIP flows in the industry stood at 3.6% in September 2024.

Sanjay Shah, managing director of Prudent Group, stated, Adoption to mutual funds is growing at an exponential pace. The unique mutual fund investor count for the industry surpassed the mark of 5 crores in the month of September. Since the last three months, monthly addition of unique investors is at a run-rate above 10 lakhs.

This accelerated adoption to mutual funds is a great tailwind for Prudent & is getting reflected in our numbers. In the first half of FY25, our net equity sales reached Rs 5,700 crore, amounting to nearly 93% of the total net sales achieved in all of FY24. In this phase of Amrit kaal wherein per capita income is set to grow 10x in next twenty-five years, Prudent will have a huge growth leeway.

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.

The scrip hit a record high of Rs 3,049 in todays intraday session.

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