HDFC Asset Management Company

HDFC AMC –

Q1 Concall and results highlights –

Industry highlights –

AUM of MF industry @ 61 lakh cr on 30 Jun 24 vs 44 lakh cr on 30 Jun 23. Out of the total 61 lakh cr, 38 lakh cr is contributed by retail and rest by Institutional clients. WRT geography, 50 lakh cr have come from T-30 cities and only 11 lakh cr from B-30 places ( Beyond top 30 cities )

It was only 8 lakh cr on 31 Mar 14. In the last six months alone, the Industry has added AUMs worth 10 lakh cr !!!

Even Debt and Liquid Funds saw a healthy inflows ( 70k cr and 51k cr respectively ) in Q1 FY 25 after 3 consecutive Qtrs of outflows. Equity schemes saw an inflow of 1.2 lakh cr in Q1 !!!

Total MF folios in India @ 18.9 cr vs 14.8 cr YoY

83 pc of Individual / Retail money is in Equity MFs. Only 17 pc is in Liquid / Debt MFs / ETFs and Others

Monthly SIP flow @ 21.3k cr vs 14.7k cr in Jun 23

SIP AUM @ 12 lakh cr. SIP accounts @ 89 vs 66 lakh accounts in Jun 23

HDFC AMC highlights –

Overall Mkt share – 11.4 pc ( third largest in the Industry ). Closing AUM of 6.9 lakh cr. Company’s retail Mkt share @ 13.3 pc

Mkt share in Equity funds – 12.9 pc. AUM @ 4.4 lakh cr

Mkt share in Debt funds – 13.3 pc. Debt AUM @ 1.4 lakh cr

Mkt share in Liquid funds – 12 pc. Liquid AUM @ 0.6 lakh cr

Company’s mkt share in ETFs and others categories is in low single digits

Company’s SIP book @ 3200 cr vs 1890 cr in June 23

19 pc of company’s AUM come from B-30 cities. Company is a distant 2nd in the B-30 business

Q1 Financial outcomes –

Revenues – 775 vs 574 cr, up 35 pc
Other Income – 173 vs 158 cr, up 10 pc
Total expenses – 195 vs 161 cr, up 22 pc
( employee expenses are up 20 pc. other expenses up 28 pc )
PAT – 600 vs 475 cr, up 26 pc

**Company is holding investments of 6400 cr. **
85 pc of this is parked in Liquid and Debt funds. Rest are in equity and arbitrage funds

Company’s operating margins { Gross margins (46 bps ) minus Operating expenses ( 12 bps ) } as a percentage of AUMs stand at 34 Bps vs 35 Bps YoY. Margins in FY 22 were also 35 Bps

Company is hiring and expanding aggressively. Added 280 employees and opened 24 new branches LY ( total branches now @ 250 + ). Most of the employee addition has been on the sales and client service side.

Equity based AUM forms 64 pc of company’s AUM vs 56 pc for the Industry. One good trend that’s emerging in this Bull mkt is that its driven more by consistent SIP flows vs the previous bull mkts when the flows were more lump-some in nature

Company has started investing behind building their AIF business. The company is also open to M&A opportunities in order to utilise the 6000 cr + that they are holding in Liquid / Debt funds

Disc: bought recently, I know I m late here. However the growth tailwinds here are impressive, not SEBI registered, biased, not a buy / sell recommendation