Our positioning is only going to strengthen with more and more MFDs preferring to join
our tech-based platforms.
Dear Shareholders,
It gives me an immense pleasure to place before you the highlights of your Company's
performance during the fiscal year 2021-22. Details of the achievements and initiatives
taken by your Company are provided in the enclosed Annual Report for the year 2021-22.
Prudent has achieved many milestones since it was founded in 2000: by end of FY2022, we
have served more than 14.02 lakh customers and extending our market leadership despite
aggressive competition. In fact, I am pleased to inform you that we have recently taken on
the mantle of being India's second largest non-banking national distributor of financial
products, when measured on the basis of commissions. We are uniquely positioned in the
retail wealth management space & our positioning is only going to strengthen
incrementally, with more and more MFDs preferring to join tech-based platforms.
Subsequent to FY2022, your company launched its IPO and got listed on bourses on May
20, 2022. Today, with implied market cap of Rs 24.411bn and shares outstanding at 41.41m,
we are proud to be part of the Indian capital markets for sharing our success for value
creation with like-minded investors.
Enabling Investing. Empowering India.
Today, the average working person requires guidance and handholding in taking
investment decisions. Through quality advisory and advanced technology platforms for ease
of transacting, there is a massive window of opportunity for channelising the savings of
an emerging India to the capital markets. Financial product distributors will play a
pivotal role in facilitating the intelligent allocation of financial resources within
India's economy. As one of India's fastest-growing financial services groups, Prudent
Corporate Advisory Services is in pole position to leverage this massive opportunity. As
India approaches $5 trillion in GDP and takes the average income per capita closer to
developed nations, your Company is ideally positioned to participate in this growth.
To reap the most out of this, we are leveraging robust technology platforms to service
our partners and offer our investors an outstanding experience. With the help of our vast
reach across India through MFDs and our own physical branches across 20 states, we intend
to play a meaningful role in catalysing greater financial inclusion, by helping all
sections of society to conveniently channelise a portion of their savings through retail
financial products. By doing this, we are here to create value for our partners,
investors, the Indian economy, and ultimately for our shareowners. We welcome all our
existing and new investors through the IPO process, to join our hands in an exciting
journey of value creation ahead of us.
FY2022 by Numbers
Looking at our performance for FY2022, as of March 31, 2022, the Company's AUM from the
mutual fund distribution business grew by 60.4% YoY to_ 49,473 crores . Our AUM growth was
led by robust organic net sales & and the inorganic acquisition of Mutual Fund assets
of Karvy Stock Broking Limited in November 2021. Commensurately, our Revenues from
operations grew by 57% YoY led by strong mutual fund AUM growth. Operating profit grew by
86.2% YoY and operating margins expanded by 400 basis points to 25.6% led by operating
leverage. Profit after tax grew by 77.4%, a shade lower than operating profit growth due
to higher depreciation expenses on account of amortisation of payment made towards
acquisition of Karvy assets. Depreciation expenses were higher by 65.4% YoY.
Commitment to ESG
As leading financial products distributor in India, we have an opportunity and
responsibility to play a part in the financial inclusion of our communities. At Prudent,
we believe that we can be instrumental in creating an invested India, and in democratising
capital market access in the hands of every Indian. As the second largest non-banking
national distributor in the country, we are also carefully cultivating the inclusion of
first-time investors through better financial literacy.
We believe that when we take care of our own people, they will, in turn, take care of
our customers, which will ultimately lead to impressive results for our Company,
shareholders, and other stakeholders. Promoting diversity, equity, and inclusion is not
only one of the pillars of our ESG strategy, but also an integral part of our Company's
values and culture. We have also steadfastly believed that as a company, we have an
obligation to contribute to the welfare of the communities in which we live and the
society in general. Our CSR initiatives are described within this report in some detail,
and I welcome you all to know more.
As we look ahead, our commitment to making a meaningful impact in people's lives will
continue to guide all aspects of our business, including our ESG strategy. I am confident
that we are well-positioned to help build the sustainable, inclusive, and profitable
future we want to see for our Company, colleagues, customers, and communities.
Gratitude
The milestones mentioned in this message are just the beginning, with many more in our
sights ahead to accomplish. We believe that we bring a meaningful value proposition that
best helps investors across India in participating in Indian capital markets and in
seeking their long-term financial goals.
I want to take this opportunity to express my gratitude to our investors for becoming
part of our family of stakeholders. We will continue marching forward towards the
realisation of our goals, thanks to the tenacity and conviction of our people.
As a new cycle dawns upon our industry in a post Covid era, Prudent is gearing up with
invigorated momentum to scale new heights. I extend my sincerest appreciation to our
people, business partners and shareholders for their unwavering support.
| Warm Regards, |
| Sanjay Shah |
| Chairman & Managing Director |