HDFC Asset Management Company (AMC) has clocked 42.15 per cent year-on-year growth in net profit at Rs 291.79 crore for the first quarter ended June 30, 2019, helped by lower expenses and higher other income.
"The asset management company had posted a net profit of Rs 205.26 crore in the corresponding quarter last year," HDFC AMC said in a filing to the Bombay Stock Exchange on Tuesday.
Revenue from operation increased 7.03 per cent y-o-y to Rs 504.39 crore in Q1FY20 compared to Rs 471.23 crore in Q1FY19. The other income jumped 61.41 per cent to Rs 48.36 crore as compared to Rs 29.96 crore in the year ago quarter.
Total expenses of the company declined sharply to Rs 122.86 crore during the quarter under review against Rs 206.55 crore in the same period last year.
The operating profit from core asset management business jumped 44 per cent to Rs 381.50 crore in Q1FY20 as compared to Rs 264.70 crore in Q1FY19.
AUM or assets under management rose 18 per cent to Rs 3,56,700 crore in April-June quarter of 2019-20. AUM in actively managed equity oriented funds i.e. equity oriented total AUM excluding arbitrage funds and index funds grew to Rs 1,68,900 crore as on June 30, 2019 with a market share of 16.2 per cent.
HDFC AMC is the largest actively managed equity-oriented mutual fund manager in the country. As of June 30, 2019, unique customers as identified by PAN or PEKRN stands at 0.54 crore compared to 1.96 crore for the industry, with a market share of 28 per cent.
During the April-June quarter, HDFC AMC decided to provide liquidity arrangement to certain Fixed Maturity Plans (FMPs) of HDFC Mutual Fund, to deal with the illiquidity faced by such FMPs due to their exposure to certain Non Convertible Debentures (NCDs).
"The liquidity arrangement entailed acquisition of such NCDs by the company from these FMPs. Consequently, during the quarter, the company has purchased such NCDs amounting to Rs 426.45 Crore at the prevailing valuation yields/prices provided by independent rating agencies," it said.
HDFC AMC shares closed trade at Rs 1,994.30, up 3.08 per cent, on the Bombay Stock Exchange on Tuesday.
Edited by Chitranjan Kumar