Markets

Lower expense boost HDFC AMC profit by 79 per cent

Our Bureau Mumbai | Updated on October 25, 2019

HDFC Asset Management Company has recorded 79 per cent growth in September quarter net profit at Rs 368 crore against Rs 206 crore logged in same period last year on the back of lower fees and commission paid to distributors and lesser tax. Revenue from operations was flat at Rs 498 crore (Rs 480 crore).

The commission paid to distributors was dipped sharply to Rs 84 lakhs against Rs 74 crore as market regulator SEBI directed mutual funds to charge the commission to particular schemes rather than mutual funds paying it separately.

Following this, overall expenses fell to Rs 122 crore (Rs 218 crore). Tax expenses were down at Rs 59 crore (Rs 91 crore).

HDFC AMC asset under management was up 25 per cent at Rs 3.66 lakh crore (Rs 2.92 lakh crore).

However, its market share was down at 13.3 per cent in September quarter against 14.7 per cent logged in June quarter.

Of the overall HDFC AMC AUM, portion of equity asset was down at 45 per cent against 51 per cent logged in same quarter last year while that of debt was down at 27 per cent from 32 per cent recorded in September, 2018.

However, less profitable liquid asset increased to 27 per cent of the overall asset under management against 16 per cent recorded last year.

Inflow through systematic investment plan was up marginally at Rs 1,280 crore in September compared to Rs 1,270 crore logged in June quarter.

Industry Scenario

Asset under management of mutual fund industry were up nine per cent at Rs 24.5 lakh crore (Rs 22 lakh crore).

Net sales of equity schemes were down 27 per cent in September quarter at Rs 23,800 crore against Rs 32,600 crore logged in same quarter last year while that of debt and liquid schemes were down at Rs 4,900 crore (Rs 48,600 crore) and Rs 9,400 crore (Rs 71100 crore).

Shares of HDFC AMC were down three per cent at Rs 2,900 on Friday.

Published on October 25, 2019

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