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Informist, Tuesday, Jan. 14, 2025

 

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--HDFC AMC Oct-Dec net profit INR 6.41 bln 
--Analysts saw HDFC AMC Oct-Dec net profit INR 5.90 bln 
--HDFC AMC Oct-Dec net profit INR 6.41 bln vs INR 4.90 bln year ago 
--HDFC AMC Oct-Dec revenue INR 9.34 bln vs INR 6.71 bln year ago 
--HDFC AMC Oct-Dec total expenses INR 1.87 bln vs INR 1.75 bln year ago 
--HDFC AMC Apr-Dec net profit INR 18.22 bln vs INR 14.05 bln year ago 
--HDFC AMC Apr-Dec revenue INR 25.97 bln vs INR 18.89 bln year ago 
--HDFC AMC Oct-Dec operating margin 37 bps of average AUM 
--HDFC AMC: AUM INR 7.76 tln as on Dec. 31, up 35% on year 
--HDFC AMC: Market share 11.6% as on Dec. 31 vs 11.3% year ago 
--HDFC AMC: Equity closing AUM INR 4.8 tln as on Dec. 31, up 38% YoY 
--HDFC AMC: Debt closing AUM INR 1.57 tln as on Dec. 31, up 17% on yr 
--HDFC AMC: Liquid closing AUM INR 767 bln as on Dec. 31, up 40% on yr 
--HDFC AMC: SIP AUM at INR 1.78 tln as on Dec 31 
 

 

By Ashna Mariam George 

 

MUMBAI – A strong on-year growth in revenue from operations boosted the net profit of HDFC Asset Management Co. Ltd. in the quarter ended December and helped it beat the Street's estimate. The fund house's net profit for Oct-Dec rose 31% on year to INR 6.41 billion. Analysts expected the net profit to rise 20.4% on year to INR 5.90 billion. Revenue from operations surged 39.2% on year to INR 9.34 billion in Oct-Dec.

 

For the Apr-Dec period, the fund house's revenue grew 37.5% on year to INR 25.97 billion. Profit after tax for the nine months ended December rose 29.72% on year to INR 18.22 billion. 

 

The fund house's other income for Oct-Dec fell 34.90% on year and 45.64% on quarter to INR 927.40 million. Analysts had expected the company's other income to be hit by mark-to-market loss. Total income of the asset management company rose 26.2% on year to INR 10.27 billion in Oct-Dec. Sequentially, the total income fell nearly 3%.

 

Though analysts expected commission expense to fall, the company's fees and commission expense rose 133.33% on year in the quarter to INR 10.5 million. Total expenses for Oct-Dec grew 6.85% on year to INR 1.87 billion.

 

The company's tax outgo for Oct-Dec fell 29.56% sequentially to INR 1.98 billion. Analysts expected the tax rate to normalise for the company, in turn lifting the company's bottom line. For the September quarter, the company's tax outgo was INR 2.82 billion, up nearly 90% from the previous quarter after the introduction of a revised long-term capital gains tax in the Union Budget for 2024-25 (Apr-Mar).

 

Analysts had estimated a strong growth in assets under management to drive revenue growth for the company. Total assets under management of the company grew 35% on year to INR 7.76 trillion as of Dec. 31.

 

Equity assets under management grew 38% on year to INR 4.80 trillion. The assets under management of debt schemes were INR 1.57 trillion as of Dec. 31, up 17% on year. Liquid assets under management rose 40% on year to INR 767 billion. The ratio of equity and non-equity oriented quarterly average assets under management of the company for the quarter ended Dec. 31 was 65:35, as compared to the industry ratio of 57:43.

 

Market share of the company increased to 11.6% as on Dec. 31 compared to 11.3% year ago. The operating margin for the quarter improved marginally to 37 basis points of the average assets under management, from 36 bps a quarter ago.  

 

Assets under management for systematic investment plan stood at INR 1.78 trillion as on Dec. 31. In December, the company processed 11 million systematic investment or transfer transactions worth INR 38.2 billion.

 

The company had 22.1 million total live accounts as of Dec. 31, and 12.6 million unique customers, representing 24% of the industry. As much as 70% of the company's total monthly average assets under management are contributed by individual investors, compared to 61% for the industry, the company said in a press release.

 

Reacting to the earnings, shares of HDFC AMC Tuesday closed 0.8% higher at INR 3,865.05 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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