HDFC AMC - Q1FY22 First Cut - ICICI Direct

(CMP - Rs. 3067, MCap - Rs. 65348 crore)

HDFC AMC saw a soft quarter with continued decline in market share and trajectory of operational revenue falling behind AUM growth. PAT boosted by other income.

Q1FY22 Earnings Summary

- Industry AUM increased from Rs. 31.4 lakh crore as of Q4FY21 to Rs. 33.7 lakh crore as of Q1FY22, largely led by pick up in equity markets. Equity related AUM increased by 12.3% QoQ at Rs. 14.6 lakh crore, proportion of equity AUM stood at 43.3% as against 41.4% QoQ. Debt schemes witnessed slight outflow thereby declining by ~1% QoQ. SIP inflows were steady sequentially at Rs. 9200 crore

- HDFC AMC's AUM also saw a growth of 5.9% QoQ to Rs. 418700 crore (17% YoY), mainly led by ~9% QoQ rise in equity AUM to Rs. 180500 crore and now forms 43% of overall AUM. Debt AUM increased by 1.7% QoQ to Rs. 154800 crore, now forming 36.9% of total AUM

- HDFC AMC continued to witness decline in market share from 13.1% in Q3FY21 to 12.6% in Q4FY21 to 12.4% in Q1FY22. Equity AUM (actively managed) market share also declined from 13.4% in Q3FY21 to 12.9% in Q4FY21 and to 12.6% in Q1FY22

- Total income from operations increased by 23.7% YoY and 11.4% QoQ to Rs. 608 crore, however this was mainly on account of sharp 136.7% sequential rise in other income to Rs. 101 crore. Core revenue growth was flattish at 0.8% QoQ which is a result of 3 bps QoQ decline in yields to 48 bps. Yields, despite sequential rise in equity AUM, have fallen which may indicated higher mobilisation in passive funds

- For the industry, SIP flows were steady at Rs. 9200 crore in June 2021 as compared to March levels, however, for HDFC AMC SIP flows moderated from Rs. 1040 crore in March 2021 to Rs. 980 crore in June 2021

We will be coming out with a detailed report soon.

Shares of HDFC Asset Management Company Ltd was last trading in BSE at Rs.3089.3 as compared to the previous close of Rs. 3087.05. The total number of shares traded during the day was 213319 in over 25290 trades.

The stock hit an intraday high of Rs. 3289.25 and intraday low of 3062.1. The net turnover during the day was Rs. 680971563.

Source : Equity Bulls

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