HDFC AMC reports positive Q2 performance

HDFC AMC has released its first quarterly performance report post its IPO in August. 

The company's revenue reported a jump of 13 per cent to Rs. 515.3 crore in Q2FY19 from Rs. 457.6 crore in Q2FY18. Profit after tax (PAT) surged 15 per cent to Rs. 205.9 crore in Q2FY19 from Rs. 179.8 crore in Q2FY18. 

For the half year ended September 2018, profits increased to Rs. 591.9 crore in Q2FY19 from Rs. 496.1 crore in Q2FY18, posting a growth of 19 per cent. 

The company would have reported a greater profit before tax, higher by Rs. 21 crore, had it not been for a one-time write-off of half of its investment in preference shares of IL&FS. 
The operating profit margin, calculated as a basis point of average assets under management (AUM), demonstrated an improvement by 1 basis point to 34 basis points for the half-year ended September 30, 2018. 

The positive performance during the quarter can be attributed to securing a large equity mandate to manage Rs. 3,285 crore from a foreign portfolio investor, of which one-third got funded. Besides, the company also witnessed an increase in live individual accounts to 86.2 lakh from 69.6 lakh, thereby registering an increase of 24 per cent. 

The total AUM increased to Rs. 2.93 lakh crore in comparison to Rs. 2.68 lakh crore, posting a growth of 9 per cent. Moreover, the company has a 13.3 per cent market share in total AUM across mutual funds. 

HDFC AMC retained its leadership position among equity mutual funds. This can be seen in the growth of 20 per cent in actively-managed equity funds which increased to Rs. 1,47,600 crore from Rs. 1,22,700, with a market share of 16 per cent. 

The proportion of equity-oriented assets with respect to non-equity oriented assets is 52:48 in contrast to the industry ratio of 44:56. 

The retail contribution has consistently remained high with 64 per cent of the company’s total monthly average AUM generated from individuals, in comparison to 53 per cent for the industry. 

On Tuesday, the shares of HDFC Asset Management Company Ltd. opened at Rs. 1,371.00 per share and hit a high and low of Rs. 1,400.00 per share and Rs. 1,371.00 per share, respectively. At 10:57 am, the stock was trading at Rs. 1,386.10 per share, up 1.09 per cent.