HDFC Asset Management reports 25 pct rise in net profit

HDFC Asset Management Company today reported a 25 percent rise in net profit at Rs 205.2 crore for the three months to June, driven by a healthy 35 basis points (bps) rise in operating margin.

HDFC Asset Management Company today reported a 25 percent rise in net profit at Rs 205.2 crore for the three months to June, driven by a healthy 35 basis points (bps) rise in operating margin.

The company, which got listed with a stellar performance early this month with a closing premium of 65 percent on debut, had reported Rs 164.6 crore net income during the same period last year. Its gross revenue rose 20 percent to Rs 501.1 crore, of which operational income grew 21 percent to Rs 471.2 crore for the quarter.

Operating profit margin, which is the operating profit as a basis point of the average asset under management (AUM), improved to 35 bps for the quarter, from 32 bps in the quarter to June 2017, the company said in a statement.

Total AUM rose to Rs 3,01,100 crore, registering a growth of 22 percent over Rs 2,47,800 crore a year ago, helping it improve the market share to 13.1 percent in total quarterly average AUM across mutual funds, and retain the tag of the second largest private sector AMC.

AUM in actively-managed equity oriented funds grew to Rs 1,46,500 crore from Rs 1,09,800 crore, clipping at the growth of over 33 percent or a market share of 16.4 percent. It can be noted that HDFC AMC is the single largest player in the equity-oriented funds, with over half of its overall AUM being parked in equities.

Of the total AUM, 13 percent came in from the B-30 markets, the company said. The ratio of equity-oriented assets and non-equity oriented assets is 50:50, compared with the industry ratio of 42:58. The company saw its individual accounts increasing 29 percent to 8.36 million, from 6.48 million in June 2017, while its individual monthly average AUM grew 26 percent.

As much as 62.4 percent of its total monthly average AUM is contributed by individuals, compared with 52 percent for the industry, the company said. From the individual monthly average AUM perspective, HDFC AMC enjoys 15.4 percent market share, making the company the preferred choice of individual investors.

During the quarter, the company processed 3.36 million systematic transactions with a value of Rs 1,160 crore in the quarter.

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