Companies

HDFC AMC Q1 net profit zooms 42 per cent, at ₹292 crore

Our Bureau Mumbai | Updated on July 16, 2019 Published on July 16, 2019

HDFC’s Asset Under Management was up 18 per cent

 HDFC Asset Management Company has reported 42 per cent increase in its June-quarter net profit of ₹292 crore (₹205 crore) aided by lower expenses as SEBI recently shifted the fees and commission paid to distributors to individual schemes.

Following this, the fees and commission paid by the fund house decreased 86 per cent to ₹11 crore (₹84 crore) and pushed the total expenses down by 40 per cent to ₹12 crore (₹21 crore).

The Asset Under Management (AUM) of the country’s largest fund house was up 18 per cent at ₹3,56,700 crore. Revenue from operations was up 7 per cent at ₹504 crore (₹471 crore) while other revenues jumped 62 per cent to ₹48 crore (₹30 crore).

Operating profit from core asset management business for the quarter under review increased 44 per cent to ₹381 crore (₹265 crore).

Equity schemes sales down

The inflow through systematic investment plan (SIP) was up 7 per cent at ₹8,100 crore (₹7,600 crore). However, the SIP inflow was static when compared sequentially to the March quarter.

Reflecting the market sentiments, net sales of equity schemes during the quarter was down 76 per cent at ₹9,600 crore against ₹39,800 crore in the same period last year. Liquid fund sales also plunged 91 per cent to ₹10,800 crore (₹1,21,900 crore).

The outflow from debt stabilised lower at ₹15,600 crore against outflow of ₹39,500 crore logged in the same period last year. Net sales of other funds increased to ₹12,800 crore (₹11,700 crore).

Equity-oriented AUM (excluding arbitrage and index funds) grew to ₹1,68,900 crore in the June-quarter, with a market share of 16.2 per cent.

The ratio of equity and non-equity assets was at 48:52 compared to the industry ratio of 43:57.

It had over 75,000 empanelled distribution partners including banks, national distributors and independent financial advisors. They serviced through 211 branches of which 135 are in B-30 (beyond top-30) cities.

Published on July 16, 2019
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