Highlights of Q3 Result:
- The company reported a 2.7% increase in standalone profit for Q3 of FY23, driven by an increase in other income.
- Revenue from operations in Q3FY23 increased 1.8% from the previous fiscal year.
- Operating profit remained steady, while other income for the quarter increased 20% compared to the previous fiscal year.
- HDFC AMC’s market share has grown little in the past year, with only a 3% increase in total AUM, with debt funds as the main drag on growth, shrinking 23%.
- The proportion of debt funds in overall AUM has dropped significantly in the past year, with a 26.2% share in Q4, down from 35.6% in the same quarter the previous year, similar trend seen in the industry as a whole.
- The company’s equity funds performed well, with AUM rising 18% year-on-year, while systematic investment plan (SIP) inflows have steadily risen in Q4, with inflows of Rs 1,570 crore, a 32% increase from the previous fiscal year.
Details of Q3 Result:
HDFC AMC Ltd reported a standalone profit of Rs 369.4 crore for Q3 of FY23, a 2.7% increase from the previous year, driven by an increase in other income.
The standalone profit for Q4 of FY22 was Rs 359.75 crore.
Revenue of HDFC AMC Ltd from operations on a standalone basis in Q3FY23 was Rs 559.56 crore, a 1.8% increase from the same period in the previous fiscal year.
Operating profit remained steady at Rs 397.4 crore, while other income for the quarter increased 20% to Rs 103.37 crore compared to the previous fiscal year.
HDFC AMC’s market share has grown little in the past year, with only a 3% increase in total AUM. The largest drag on its AUM growth was in debt funds, which shrank 23%.
The proportion of debt funds in overall AUM has dropped significantly in the past year, with a 26.2% share in Q4, down from 35.6% in the same quarter the previous year.
The overall industry saw a similar trend, with the proportion of debt funds dropping to 21.5% from 28.5% a year ago.
HDFC AMC’s debt funds experienced larger outflows compared to the industry as a whole, with management citing tightening monetary policy and competition from bank fixed deposits as the cause. However, going forward, the factors are favorable for debt funds.
The company’s equity funds performed well, with AUM rising 18% year-on-year.
The HDFC AMC Ltd systematic investment plan (SIP) inflows have steadily risen, with inflows of Rs 1,570 crore in Q4, a 32% increase from the previous fiscal year.
In distribution channels, mutual fund distributors sold the most equity funds, with a 41% share in overall AUM, followed by the company’s direct channel.
The HDFC AMC Ltd paid a final dividend of Rs 42 per equity share (on a face value of Rs 5 each) for the year ending March 2022, as approved by shareholders at the annual general meeting on June 29, 2022.
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