HDFC AMC sees 27% spike in profit; holds 14.4% market share in MF industry

Improving mix of equity products is positive for an AMC as equity products offer higher management fees than fixed income products.

HDFC Asset Management Company (AMC) — which is the country's largest asset manager  — reported profit before tax (PBT) of Rs 466 crore in the December quarter, clocking a growth of 27 per cent on a year-on-year basis.

For the nine-month period ending December 31, 2019, the PBT rose 38 per cent to Rs 1,323 crore, compared to corresponding period in the previous year.

At Rs 3.68 trillion, the company's market share at the end of December stood at 14.4 per cent.

The company continued to see lower fees and commission expenses. In December quarter, the expenses fell 87 per cent to Rs 71 crore, compared to same period in the preceding year.

The ratio of equity oriented assets under management (AUM) and non-equity oriented AUM was 46:54 compared to the industry ratio of 41:59.

Improving the mix of equity products is positive for an AMC as equity products offer higher management fees than fixed income products.

In the top-30 (B-30) cities, the company held market share of 12.6 per cent.