More Stories

Informist, Tuesday, Oct. 15, 2024

 

Please click here to read all liners published on this story

 --HDFC AMC Jul-Sept net profit INR 5.77 bln 
 --Analysts saw HDFC AMC Jul-Sept net profit INR 5.84 bln 
 --HDFC AMC Jul-Sept net profit INR 5.77 bln vs INR 4.38 bln year ago 
 --HDFC AMC Jul-Sept revenue INR 8.87 bln vs INR 6.43 bln year ago 
 --HDFC AMC Jul-Sept total expenses INR 1.99 bln vs INR 1.76 bln year ago 
 --HDFC AMC Apr-Sept net profit INR 11.81 bln vs INR 9.15 bln year ago 
 --HDFC AMC Apr-Sept revenue INR 16.62 bln vs INR 12.18 bln year ago 
 --HDFC AMC: AUM INR 7.69 tln as on Sept. 30, up 47% on year 
 --HDFC AMC: Market share 11.5% as on Sept. 30 vs 11.2% year ago 
 --HDFC AMC: Equity AUM INR 4.87 tln as on Sept. 30, up 62% on year 
 --HDFC AMC: Jul-Sept operating margin 36 bps of average AUM 
 --HDFC AMC: Debt AUM INR 1.54 tln as on Sept 30, up 15% on year 

 

By Ashna Mariam George

 

MUMBAI – HDFC Asset Management Co. Tuesday reported a lower-than-expected net profit for Jul-Sept due to an increase in its tax outgo, after the introduction of a revised long-term capital gains tax in the Union Budget for 2024-25 (Apr-Mar). The company reported a net profit of INR 5.77 billion, which was 32% higher on year but down 4.5% from a quarter ago. Analysts had estimated the net profit of the asset management company at INR 5.88 billion. 

 

The new tax structure introduced in the Budget increased the company's deferred tax liability by approximately INR 697 million, thereby resulting in an additional charge on the profit after tax for the quarter, the company said in its financial results. For the September quarter, the company reported a tax outgo of INR 2.82 billion, up nearly 90% from the previous quarter.  

 

In the Budget, the long-term capital gains tax was revised to 12.5% from the earlier rates of 10% for securities transaction tax-paid listed shares, units of equity-oriented mutual fund schemes, and business trusts; and 20% for other assets with indexation benefits. The short-term capital gains tax on equity shares, units of equity-oriented mutual fund and units of a business trust was increased to 20%, from 15%.

 

Revenue from operations surged 38% on year to INR 8.87 billion in Jul-Sept. Growth in equity assets under management drove the revenue growth for the company. On a sequential basis, the company's actively managed equity assets under management were up 15% at INR 4.67 trillion. As of Sept. 30, the company's actively managed equity assets under management were INR 4.87 trillion, surging 62% on year. 

 

Assets under management of the company amounted to INR 7.69 trillion as of Sept. 30, up 47% on year. For the quarter ended September, assets under management of the company were worth INR 7.59 trillion, up from INR 5.24 trillion a year ago. The assets under management of debt schemes were INR 1.54 trillion as of Sept. 30, up 15% on year. The ratio of equity and non-equity oriented quarterly average assets under management of the company was 66:34, as compared to the industry ratio of 57:43 for the quarter ended Sept. 30.

 

The market share of the asset management company inched up to 11.5% as of Sept. 30 from 11.2% a year ago. However, the market share remained flat compared to the previous quarter. The operating margin for the reporting quarter improved marginally to 36 basis points of the average assets under management, from 34 bps a quarter ago.  

 

The fund house's total expense for the September quarter rose 13% on year to INR 1.99 billion, due to a rise in fees and commission expenses and other expenses. Fees and commission expenses rose to INR 9 million from INR 3.8 million a year ago, while other expenses inched up to INR 865 million compared to INR 675 million in the previous year.

 

In September, the company processed 10.31 systematic investment or transfer transactions worth INR 36.8 billion. This took its systematic investment or transfer plan assets under management to INR 1.78 trillion as of Sept. 30. 

 

The company had 20.7 million total live accounts as of Sept. 30, and 11.8 million unique customers, representing 24% of the industry. As much as 71% of the company's total monthly average assets under management are contributed by individual investors, compared to 62% for the industry, the company said in a press release.

 

Ahead of the release of quarterly results, shares of HDFC Asset Management Co. hit a record high of INR 4,604.25 on the National Stock Exchange. On Tuesday, shares of the company ended 1.63% higher at INR 4,555.10 on the NSE.  End 

 

Edited by Tanima Banerjee

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2024. All rights reserved.