Listed AMCs see a muted January-March quarter due to pressure on yields

Listed asset management companies (AMCs) have seen a subdued January-March quarter (fourth quarter, or Q4) due to pressure on yields.

UTI AMC saw its profit after tax drop 60 per cent year-on-year (YoY), while Aditya Birla Sun Life AMC saw its profits increase just 1 per cent. 

HDFC Securities in its report on UTI AMC stated that the fund reported a weak quarter, a hit on core operating profit notwithstanding.

“Moderating yields and elevated staff costs continue to drag core profitability (earnings before interest and tax margin at 36 per cent — a five-quarter low). While we draw comfort from management commentary around