HDFC Asset Management Company (AMC), a subsidiary of HDFC Bank, released its second quarter earnings report today, which showed that its top and bottom line grew by 18.1% and 20% year-on-year (YoY), respectively. Reacting to the Q2 numbers, shares of HDFC AMC closed 0.14% lower at ₹2,743.40 on the BSE. This is the first earnings report by the company post the merger of its parent, HDFC, with HDFC Bank on July 1.
For the quarter ended September 30, 2023, HDFC AMC reported a net profit of ₹436.5 crore as compared to ₹363.8 crore in the year-ago quarter, registering a growth of 20%. Sequentially, the profit dropped 8% from ₹477.5 crore in June quarter of FY24.
The revenue in Q2FY24 jumped 18.1% to ₹643.1 crore from ₹544.7 crore in the same period last year. On quarter-on-quarter (QoQ), the revenue was up 12% from ₹574.5 crore in Q1FY24. The total income increased 18% YoY and 4% QoQ to 765.3 crore during the quarter under review.
The operating profit for the quarter was ₹467 crore, up 20% from ₹388.9 crore in the year-ago period.
HDFC AMC’s Quarterly Average Assets Under Management (QAAUM) stood at ₹5.24 lakh crore as against ₹4.85 lakh crore in Q1FY24, holding 12.4% market share in QAAUM of the mutual fund industry.
“QAAUM in actively managed equity-oriented funds i.e. equity oriented QAAUM excluding index funds stood at ₹2.86 lakh crore for the quarter ended September 30, 2023 with a market share of 12.4%. The AMC is amongst the largest actively managed equity-oriented mutual fund managers in the country," HDFC AMC says in its earnings report.
The ratio of equity oriented QAAUM and non-equity oriented QAAUM was 58:42, compared to the industry ratio of 51:49 for the quarter ended September 30, 2023.
As per the company, 5.86 million systematic transactions, totaling ₹2,240 crore were executed in the month of September 2023.
As of September 30, 2023, total Live Accounts stood at 13.6 million, while unique customers as identified by PAN or PEKRN were at 7.9 million as compared to 40.4 million for the industry, a market share of 19.6%.
According to Prabhudas Lilladher, QAAUM was largely in-line with expectations, while revenue and profit was higher than expected, led by increase in equity share QoQ.
For the first half of the current fiscal, HDFC AMC posted profit after tax at ₹915.1 crore versus ₹678.3 crore in the same period last year, registering a growth of 35%. The revenue grew 27% from ₹1,181.8 crore in H1FY23 to ₹1,497.8 crore during the quarter under review.
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