HDFC AMC's ability to handle cost-related pressures helped its Q1

Stock touched an all-time high; leadership in retail AUMs also augurs well

In the four quarters of publishing results after last year’s listing, June quarter (first quarter or Q1) has been the best so far for HDFC Asset Management Company (AMC). While revenues from operations grew only 7 per cent year-on-year (YoY) to Rs 504 crore, net profit growth at 42 per cent YoY to Rs 287 crore in Q1 was sizeable.

Consequently, the stock of HDFC AMC rose by 4 per cent on Wednesday reacting to positive numbers. The Street’s expectations have moved a notch higher, given the company’s ability to handle cost-related pressures quite effectively. These pressures cropped up,