HDFC Asset Management Company (AMC)'s net profit rose 4.73% to Rs 369.26 crore on 8.16% decrease in revenue from operations to Rs 481.86 crore in Q3 December 2020 over Q3 December 2019.
Other income surged 68.08% to Rs 113.05 crore in in Q3 FY21 over Q3 FY20. Profit before tax (PBT) gained 3.55% to Rs 482.62 crore in Q3 December 2020 as against Rs 466.03 crore in Q3 December 2019. Total tax expense for the quarter declined 0.10% to Rs 113.36 crore as against Rs 113.48 crore in Q3 December 2019. The Q3 result was declared after market hours today, 20 January 2021.
Total expense during the quarter declined 11% year-on-year (Y-o-Y) to Rs 112.20 crore. The operating profit of the company for the quarter ended 31 December 2020 was Rs 369.70 crore. While this is 7% lower than the operating profit of Rs 398.70 crore for the quarter ended 31 December 2019, it is 6% higher than the operating profit of Rs 349.10 crore for the quarter ended 30 September 2020.
HDFC AMC's market share stood at 13.1% as on 31 December 2020 as against 13.6% as on 30 September 2020 and 14.3% as on 31 December 2019. The company's quarterly average Assets Under Management (QAAUM) was at Rs 3,89,500 crore as of 31 December 2020 as compared to Rs 3,82,500 crore as on 31 December 2019.
The company said its financial performance in the initial period of this financial year had suffered due to the effects of the COVID-19 pandemic on the markets. While there continues to be some uncertainty regarding how the COVID-19 pandemic will ultimately pan out, markets have been upbeat and the firm's financial performance this quarter has improved further. This is evident from sequential improvement in profit parameters and even in operating margin which has gone up from 34 bps in the quarter ended 30 June 2020 to 37 bps in the quarter ended 30 September 2020 and now stands at 38 bps for the quarter ended 31 December 2020.
HDFC AMC is investment manager to HDFC Mutual Fund. The company 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, independent financial advisors and national distributors.
Shares of HDFC Asset Management Company (AMC) fell 0.03% to close at Rs 3,205.90 today.
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