HDFC AMC - Q1FY21 First Cut - ICICI Securities

(CMP - Rs. 2487, MCap - Rs. 52958 crore)

HDFC AMC reported a steady set of Q1FY21 numbers. Recovery in equities led to revival in AUM but market share has witnessed a decline. Recognition of full impact of volatility in Q1FY21 led to decline in topline offset by lower opex and higher other income.

Q1FY21 Earnings Summary

- Industry AUM increased to Rs. 25.5 lakh crore as of June 2020 as compared to Rs. 22.3 lakh crore as of March 2020, largely led by pick up in equity markets. Equity related AUM grew from Rs. 8.3 lakh crore in March 2020 to Rs. 9.8 lakh crore. However, proportion of equity AUM remained broadly flat at 38%. Debt and liquid schemes witnessed healthy traction at ~4% and ~19% QoQ increase to Rs. 8.1 lakh crore and Rs. 4.9 lakh crore, respectively. SIP inflows dipped 8.1% QoQ to Rs. 7900 crore, though SIP accounts came a tad higher by 3.5% QoQ to 3.2 crore

- HDFC AMC's AUM recovered to Rs. 357500 crore, up 12% QoQ, amid recent upswing in equity markets. Equity AUM rose 17% QoQ (industry growth rate 18%) to Rs. 1.4 lakh crore. Non-equity AUM remained broadly flattish at ~Rs. 2 lakh crore

- HDFC AMC witnessed a market share dip of ~30 bps QoQ on an overall basis to 14%. Equity AUM market share also declined ~ 40 bps QoQ to 14.3%

- Recognition of full impact of volatility in equity markets resulted in 14% QoQ decline in top-line to Rs. 411 crore. Accordingly, blended yields were lower by 11bps/14bps YoY/QoQ to ~45 bps. Lower opex and decline in tax outgo led to 4% YoY growth in earnings at Rs. 302 crore, though down 21% QoQ

- In line with industry trend, SIP inflows witnessed a dip to Rs. 960 crore from Rs. 1130 crore in March 2020 and Rs. 1270 crore in June 2019. Company continued to maintain its overall leadership in individual asset with market share of 15.7%. Proportion of AUM from direct source has been on rise with ~980 bps YoY improvement to 49% in AUM and ~160 bps YoY to 19.3% in equity oriented AUM

We will be coming out with a detailed report soon.

Shares of HDFC Asset Management Company Ltd was last trading in BSE at Rs.2501.8 as compared to the previous close of Rs. 2504.85. The total number of shares traded during the day was 47159 in over 3945 trades.

The stock hit an intraday high of Rs. 2526.85 and intraday low of 2476.85. The net turnover during the day was Rs. 118176967.

Source : Equity Bulls

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