HDFC AMC Q2 PAT rises 2% YoY to Rs 345 cr

HDFC Asset Management Company reported 2% rise in net profit to Rs 344.5 crore on a 19% increase in revenue from operations to Rs 542.3 crore in Q2 FY22 over Q2 FY21.

Total expenses rose by 37% YoY to Rs 146.9 crore in the second quarter, due to sharp increases in employee benefit expenses (up 49% YoY) and other expenses (up 39% YoY).

The company said that in Q2 FY22, employee benefit expenses includes non-cash charge of Rs 16.673 crore towards amortised cost of outstanding employee stock options.

The increase in other expenses is mainly on account of increase in new fund offer expense, business promotion expense and CSR expense.

The company reported a pre-tax profit of Rs 461.5 crore in Q2 FY22 as against a pre-tax profit of Rs 462.8 crore in Q2 FY21. Tax expenses declined by 6% to Rs 117 crore during the period under review.

While the AMC's net profit has remained flat, revenue has risen by 7% in Q2 FY22 as compared with Q1 FY22.

The AMC had a QAAUM (quarterly average assets under management) of Rs 4,38,900 crore as of 30 September 2021 compared to Rs 3,75,500 crore as on 30 September 2020, a growth of 17%, and its market share was 12.1% in QAAUM of the mutual fund industry.

QAAUM in actively managed equity-oriented funds i.e. equity oriented QAAUM excluding index funds stood at Rs 1,87,700 crore as on 30 September 2021 with a market share of 12.2%.

As of 30 September 2021, 58.8% of the company's total monthly average AUM is contributed by individual investors compared to 54.5% for the industry.

Total live accounts stood at 9.2 million as on 30 September 2021. Unique customers as identified by PAN or PEKRN now stands at 5.4 million as on 30 September 2021 compared to 26.7 million for the industry.

HDFC Asset Management Company (HDFC AMC) is investment manager to HDFC Mutual Fund, one of the largest mutual funds in the country. The AMC has a diversified asset class mix across equity and fixed income/others. It also has a countrywide network of branches along with a diversified distribution network comprising banks, mutual fund distributors and national distributors.

The scrip fell 3.07% to currently trade at Rs 2682.95 on the BSE.

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