Company Update : Prudent Corporate Advisory Ltd By Motilal Oswal Financial Services Ltd
16% PAT beat driven by better-than-expected operating margin and other income
* Prudent reported operating revenue of INR2.8b, +18% YoY (in line) in 4QFY25. For FY25, operating revenue grew 37% YoY to INR11b.
* Commission and fees income for the quarter rose 18% YoY to INR2.8b, of which INR2.3b (+26% YoY) was contributed by the distribution of MF products and INR402m (+2% YoY) by insurance products.
* QAUM stood at INR1t, up 26% YoY. Monthly SIP flow grew to INR9.81b from INR7.26b in 4QFY24.
* Total insurance premium for the quarter came in at INR2.6b (+17% YoY), of which life insurance premium stood at INR2.1b (+15% YoY) and general insurance premium stood at INR494m (+29% YoY).
* Other income for 4QFY25 rose 37% YoY to INR85m (11% beat).
* Operating expenses grew 20% YoY to INR2.1b (in line), with fees and commission expenses growing 29% YoY (in line), employee expenses growing 5% YoY (20% below estimates) and other expenses declining 9% YoY (10% above estimates).
* EBITDA grew by 13% YoY to INR686m (15% beat), reflecting EBITDA margin of 24.3% (vs. 25.4% in 4QFY24 and our est. of 21.7%).
* PAT at INR516m grew 16% YoY (16% beat). For FY25, PAT grew 41% YoY to ~INR2b. ? The board has recommended a final dividend of INR2.5/share.
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