Ahmedabad-based wealth management company Prudent Corporate Advisory Services posted standalone net profit of Rs 20 crore for the quarter ended March 31, 2023, up 25 per cent from Rs 16 crore recorded in the corresponding quarter a year ago.

Revenues from operations stood at Rs 137 crore, up 23 per cent from Rs 111 crore in the same quarter a year ago.

For the financial year 2022-23, standalone net profit stood at Rs 74 crore, versus Rs 59 crore a year ago, up 25 per cent. Annual standalone revenue for fiscal 2023 stood at Rs 518 crore, up from Rs 391 crore last year.

At its meeting on Wednesday, the board of directors recommended final dividend of Rs 1.50 per equity share of face value of Rs 5.

On a consolidated basis, quarterly profits stood at Rs 41 crore, up 81.5 per cent from Rs 23 crore a year ago. Consolidated revenues from operations stood at Rs 177 crore for the quarter, up 37 per cent from Rs 129 crore a year ago. For fiscal 2023, consolidated profits stood at Rs 117 crore, up 45 per cent from Rs 80 crore a year ago on revenues of Rs 611 crore versus Rs 451 crore a year ago.

Assets under management

The company attributed the 36 per cent growth in consolidated annual revenues to the 33 per cent growth in yearly average assets under management (AUM) in the mutual fund vertical coupled with insurance revenues almost doubling.

“Growth in AUM was led by robust systematic investment plan (SIP) flows and acquisition of Karvy’s mutual fund folios. We ended March 2023 with a monthly SIP flow of Rs 517 crore, with almost a second rupee of gross inflow coming from SIP. As of March 31, 2023, our closing AUM surpassed the Rs 56,000-crore mark,” the company said.

Sanjay Shah, managing director of the company, said, “We achieved three key milestones during FY23. First, our mutual fund vertical crossed Rs 500 crore in revenues. Second, our cash flow from operations exceeded Rs 100 crore. And finally, our insurance vertical crossed 10 per cent of the overall revenues.”

“Annualising the monthly SIP flow as of March 2023 of Rs 517 crore, we expect gross flows from SIPs to exceed Rs 6,200 crore in FY24, which is 11 per cent of the FY23 closing AUM. So, we are confident of generating 11 per cent growth from net sales and expect the balance 10 per cent to accrue from marked-to-market (M2M), enabling us to grow at an annualised rate of 20 per cent over the longer run,” he added.

The company expects to reach the Rs 1 lakh-crore AUM mark in the next three to four years.

Prudent Corporate Advisory shares gained over 12 per cent on Thursday in early trade to quote at Rs 983.15 on BSE.