HDFC AMC Delivers Strong Q1FY24 Performance: Robust Revenue Growth and 52% Increase in Profit After Tax
HDFC AMC's financial performance in Q1FY24 was strong. The company's revenue increased, its expenses were well-managed, and its profit after tax increased significantly. The company's core AM business also performed well, with operating profit increasing by 11%.
Assets under management (AUM): HDFC AMC's QAAUM (quarterly average AUM) stood at ₹4,857 billion as of March 31, 2023. This represents a 12.1% market share in the Indian asset management industry. Product mix: HDFC AMC's AUM is diversified across asset classes, with equity-oriented funds accounting for 12.1% of the total, debt funds accounting for 13.2%, and liquid funds accounting for 13.7%.
Distribution channels: HDFC AMC's distribution network consists of 12.2 million live accounts, 1,323 employees, 229 branches, and 7.1 million unique investors. Financial performance: HDFC AMC's total income for Q1 FY24 was ₹7,325 million, and its PAT was ₹4,775 million. The company's operating margin was 34 bps in Q1 FY24.
Revenue from Operations increased by 10% to Rs.5,745 crore in Q1 FY24 from Rs.5,216 crore in Q1 FY23. Other Income increased by 1298% to Rs.1,580 crore in Q1 FY24 from Rs.113 crore in Q1 FY23. This was primarily due to the gain on sale of investments.
Profit after tax (PAT) increased by 52% to Rs.4,775 crore in Q1 FY24 from Rs.3,142 crore in Q1 FY23. Total comprehensive Income increased by 52% to Rs.4,751 crore in Q1 FY24 from Rs.3,135 crore in Q1 FY23. 2) Total Expenses increased by 9%.
3) Operating Profit from core AM business increased by 11%. 4) Profit after tax increased by 52%. 5) Return on equity (ROE) has been declining in recent years, from 35% in FY19 to 24.5% in FY23.
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