HDFC Asset Management Company reported standalone profit at Rs 369.4 crore for the October-December period of FY23, registering 2.7 percent growth over a year-ago quarter, largely driven by increase in other income.
The standalone profit for quarter ended December FY22 was at Rs 359.75 crore.
Revenue from operations on a standalone basis in Q3FY23 stood at Rs 559.56 crore for the quarter gone by, growing 1.8 percent compared to similar period last fiscal, the company said in its filing to exchanges on January 24.
Operating profit was steady year-on-year at Rs 397.4 crore. Other income for the quarter at Rs 103.37 crore increased by 20 percent over corresponding period in previous financial year.
HDFC AMC's market share has hardly grown in the past one year on a total asset under management basis. The fund house reported a mere 3 percent growth in its AUM. The biggest drag on its AUM growth were debt funds where AUM shrank 23 percent for the fund house.
The share of debt funds in overall AUM has dropped sharply over the past one year. The share in the December quarter, on a quarterly average AUM basis, was 26.2 percent which was down from 35.6 percent in the corresponding quarter the year before.
In comparison, the share of debt funds for the industry as a whole has dropped to 21.5 percent from 28.5 percent a year ago.
While debt funds have witnessed large outflows in the past quarters, outflows from HDFC AMC's funds have been larger. The management in a post-earnings call with analysts said that tightening monetary policy which drove up yields and made competing products such as bank fixed deposits more appealing were behind the fall in AUM. Going forward though, the factors are favourable for debt funds.
To be sure, its equity funds did well with AUM rising 18 percent year-on-year for them.
An upside for the fund house has been the steady rise in its systematic investment plan (SIP) inflows. SIP inflows were Rs 1,570 crore for the December quarter, 32 percent higher than the corresponding quarter in the previous financial year.
In distribution channels, mutual fund distributors hawked equity funds the most with 41 percent share in the overall AUM. The company's direct channel's share was the next highest.
During the period ended December 2022, "we have paid a final dividend of Rs 42 per equity share (on face value of Rs 5 each) for the year ended March 2022 as approved by its shareholders at the annual general meeting held on June 29, 2022," said the asset management services provider.
Click Here To Read All Earnings Related News
HDFC AMC has paid tax expenses of Rs 131.32 crore for the quarter ended December FY23, up from Rs 125.40 crore paid in similar quarter last year.
The stock corrected further after quarterly earnings to end at Rs 1,963.90 a piece on the BSE, down 1.85 percent on January 24.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
