In This Article:
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Total Income: INR10,579 million for the quarter.
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Revenue from Operations: INR8,873 million, a growth of 38% YoY.
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Operating Profit: INR6,881 million, a growth of 47% YoY.
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Profit After Tax (PAT): INR5,769 million for the quarter.
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Assets Under Management (AUM): INR7.7 trillion, with a market share of 11.5%.
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Equity-Oriented AUM: INR4.9 trillion, with a share of 12.7%.
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Debt and Liquid Funds Market Share: 13.4% and 13%, respectively.
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Systematic Transactions: Over 10 million transactions amounting to INR36.8 billion in September 2024.
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Deferred Tax Liability Increase: INR69.75 crores due to changes in capital gains tax rate.
Release Date: October 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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HDFC Asset Management Co Ltd (NSE:HDFCAMC) reported a significant growth in total income, reaching INR10,579 million, with a 38% year-over-year increase in revenue from operations.
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The company's operating profit grew by 47% year-over-year, amounting to INR6,881 million, indicating strong operational efficiency.
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HDFC Asset Management Co Ltd (NSE:HDFCAMC) achieved a market share of 11.5% with equity-oriented funds comprising 65.7% of their AUM, outperforming the industry average.
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The company has seen a substantial increase in systematic transactions, with over 10 million transactions amounting to INR36.8 billion in September 2024.
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HDFC Asset Management Co Ltd (NSE:HDFCAMC) has successfully expanded its unique investor base to 11.8 million, representing a 24% penetration in the industry.
Negative Points
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The company faced an additional deferred tax liability of INR69.75 crores due to changes in capital gains tax rates, impacting the PAT for the quarter.
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Despite positive net flows in debt and liquid funds, these were lower compared to the previous quarter ending June 2024.
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The company has experienced a decline in equity margins due to the telescopic pricing model, which continues to impact yields.
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HDFC Asset Management Co Ltd (NSE:HDFCAMC) did not have any new fund offerings (NFOs) this quarter, which affected their market share relative to competitors with active NFOs.
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The company is facing challenges in maintaining yield stability due to ongoing market dynamics and regulatory changes.
Q & A Highlights
Q: Are there any steps being taken to attract fresh investments from NRIs into Indian mutual funds? A: Navneet Munot, CEO, mentioned that HDFC AMC has set up a wholly-owned subsidiary in Gift City, HDFCAMC International, which will soon launch products feeding into domestic mutual funds, enhancing their ability to attract investments from the global diaspora.