Prime Securities Limited (PSL) has reported a robust performance for the first quarter, with significant growth in revenue and profitability. The company also announced the launch of a new wealth management vertical, marking its expansion into a promising business segment.

Financial Highlights

Prime Securities reported consolidated revenue of ₹46.91 crore for the quarter, representing a substantial 61% increase from ₹29.14 crore in the same quarter last year. This quarterly revenue accounts for approximately 52% of the company's full-year revenue from the previous fiscal year, indicating strong momentum.

The company's profit before tax (PBT) grew by 34% to ₹16.46 crore, up from ₹12.31 crore in the corresponding quarter of the previous year. Notably, this PBT figure was achieved after recognizing an additional expense of ₹5.53 crore related to the newly established Prime Trigen Wealth activities and recently established operations in the UK and UAE.

Profit after tax (PAT) increased by 25% to ₹10.48 crore, compared to ₹8.42 crore in the corresponding quarter of the previous year. The diluted earnings per share (EPS) for the quarter rose by 29% to ₹3.15, up from ₹2.44 in the same period last year.

Launch of Wealth Management Vertical

A significant development during the quarter was the launch of Prime Securities' new wealth management vertical through its wholly-owned subsidiary, Prime Trigen Wealth Limited ("TriGen"). This strategic move aims to diversify the company's revenue streams and tap into the growing wealth management market in India.

Key highlights of the new wealth management business include:

1. Leadership: The vertical is led by Mr. Sailesh Balachandran and Mr. Maneesh Kapoor as Joint CEOs.
2. Geographic Expansion: TriGen has established presence across seven strategic locations, including major metros and key Tier-II cities such as Mumbai, Delhi, Bangalore, Chennai, Salem, Hyderabad, and Kochi.
3. Team Growth: The wealth management team has grown to 65 members, comprising top-tier professionals with an average of 18 years of experience in the field.
4. Client Acquisition: Within the first 100 days of operation, TriGen has successfully onboarded over 125 High Net Worth Individual (HNI) and Ultra High Net Worth Individual (UHNI) families.
5. Technology Focus: TriGen Wealth has secured exclusive partnerships with global tech leaders, ETON Solutions, and an Indian firm for advanced AI-driven portfolio analytics, emphasizing technology as a core pillar for growth.

Other Business Highlights

• Cash Position: As of the end of the quarter, Prime Securities' cash, cash equivalents, and investments reached an all-time high of ₹247.66 crore, indicating a strong liquidity position.
• Revenue Diversification: The company continues to build a combination of annuity income flows and transactional (success-based) revenue streams, which could potentially lead to more stable and predictable earnings in the future.
• Business Outlook: While acknowledging that the advisory business doesn't lend itself to simple quarterly or annual comparisons, the management noted that both the number and size of deals have been steadily rising. They expressed optimism about the company's prospects over the next few years.

Management Commentary

N. Jayakumar, Managing Director and Group CEO of Prime Securities Limited, commented on the results from Lisbon, Portugal. While specific quotes were not provided, the press release indicates that the management is positive about the company's future prospects, particularly highlighting the growth in deal sizes and numbers.

Prime Securities' strong quarterly performance, coupled with its strategic expansion into wealth management, positions the company for potential growth in the coming quarters. Investors and market watchers will likely keep a close eye on how the new wealth management vertical contributes to the company's overall performance and whether the strong revenue growth can be sustained in the subsequent quarters.

Prime Securities Limited , a leading financial advisory and intermediation services provider, has announced its financial results for the fourth quarter and fiscal year ended March 31, 2025, showcasing remarkable growth and profitability.

Stellar Annual Performance

For the fiscal year 2025, Prime Securities reported impressive financial metrics:

Q4 FY2025 Highlights

The company's fourth quarter results also reflected positive momentum:

• Q4 revenue was ₹12.71 crore, slightly down from ₹12.82 crore in the same quarter last year.
• Q4 consolidated net profit decreased to ₹9.60 crore from ₹16.50 crore year-over-year but increased significantly from ₹8.20 crore in the previous quarter.

Dividend Announcement

The Board of Directors has recommended a dividend of ₹1.50 per equity share for FY2025, a 50% increase from the ₹1.00 per share paid in the previous financial year.

Strong Financial Position

As of March 31, 2025, Prime Securities reported cash, cash equivalents, and investments totaling ₹220.48 crore, indicating a robust liquidity position.

Business Highlights

• The company continues to build a successful combination of annuity income flows and transactional (success-based) revenue streams.
• Prime Securities has launched a new wealth management business vertical through its wholly-owned subsidiary, Prime Trigen Wealth Limited.
  • The subsidiary has appointed two co-CEOs and 33 team members.
  • A technology platform for onboarding and servicing clients has been launched.
• During the year, the board approved the incorporation of two wholly-owned subsidiary companies:
  • Prime Advisory Partners Ltd in the United Kingdom
  • PRAL Management Consultancies LLC in the United Arab Emirates

Management Commentary

N. Jayakumar, Managing Director and Group CEO, commented on the results: "While investors should note that the advisory business does not lend itself to quarterly or annual comparisons, much less extrapolation, it is equally important to highlight that both the number and size of deals have been steadily rising. The management remains optimistic on the prospects of the Company over the next few years."

Market Outlook

The company noted that recent market conditions have been characterized by high volatility, significant policy shifts from the US, and ramifications in the FX, Commodity, Bond, and Equity Markets. However, Prime Securities expects that some peace and calm will return soon, with India potentially emerging as a significant beneficiary.

As Prime Securities Limited continues to expand its operations and diversify its revenue streams, the company appears well-positioned for sustained growth in the coming years, leveraging its strong financial performance and strategic initiatives in wealth management and international markets.