Prudent Corporate Advisory Services Limited has informed the Exchange about Transcript of the Conference call for audited financial results for the quarter and year ended 31st March, 2025
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Prudent filed the transcript of its Q4 and FY25 earnings call held on May 13, 2025. Equity AUM grew 25% year-on-year to ₹1,00,061 crore, with equity net sales nearly doubling to ₹12,606 crore and gross SIP inflows at ₹10,214 crore. Monthly SIP book rose 35% YoY to ₹981 crore. Consolidated revenue grew 40% and profit grew 41% to ₹195.4 crore, with average ROE of 34%. Commission payout ratio jumped 300 bps to 64.1% in FY25 (Q4 at 66%) due to a 3% shift in AUM mix toward the partner channel, which now accounts for 90% of AUM. Management guided that every 1% further shift toward partners adds ~65 bps to payout ratio, implying 100-150 bps of further margin pressure in FY26. The company announced a 14.5% fixed salary hike effective April 2025, an ESOP plan (4% dilution over 10 years), and is actively scouting acquisitions in mutual fund distribution and POSP-led insurance, supported by a ₹500 crore treasury.
Strong AUM and SIP momentum continues to drive the growth story, but rising payout ratio is a clear near-term margin headwind that may weigh on profitability growth. The acquisition plans and ESOP indicate management confidence in long-term value creation despite cost pressures.