HDFC AMC rallies 10% in two days on strong Q1 results, hits record high

AUM in actively managed equity-oriented funds, i.e. equity-oriented total AUM excluding arbitrage funds and index funds, grew to Rs 1.69 trillion as of June 30, 2019, with a market share of 16.2%

Shares of HDFC Asset Management Company (AMC) hit a record high of Rs 2,129, up 7 per cent intra-day on the BSE on Wednesday, after the company reported a 42 per cent year-on-year (YoY) jump in net profit at Rs 292 crore in the June quarter of fiscal year 2019-20 (Q1FY20). The strong profit growth was led by lower expenses and higher other income, the company's financial data show.

Assets under management (AUM) rose 18 per cent to Rs 3.57 trillion in Q1FY20. Among these, AUM in actively managed equity-oriented funds, i.e. equity-oriented total AUM, excluding arbitrage funds and index funds, grew to Rs 1.69 trillion as on June 30, 2019 with a market share of 16.2 per cent.

The company's operating profit from core asset management business in the recently concluded quarter jumped 44 per cent to Rs 381 crore as against Rs 265 crore in Q1FY19. The HDFC AMC is the largest actively managed equity-oriented mutual fund manager in the country.

At 10:09 am, the stock was trading 6 per cent higher at Rs 2,114 on the BSE, as compared to a 0.25 per cent rise in the S&P BSE Sensex. The trading volumes on the counter rose 2.5 times with a combined 7,12,846 shares changing hands on the NSE and BSE so far. The stock has surged 10 per cent in past two trading days.