ABSL AMC reported a PAT growth of 38% YoY and QAAUM is up 16% YoY due to robust growth in the equity segment | Q3 FY22 Earning Call Highlights

Financial Highlights

Operating revenue is up by 20% YoY to Rs. 334.3 Cr
Operating Profit before Tax is up by 53% YoY to Rs. 230.2 Cr
Profit After Tax stood at Rs. 173.1 Cr for Q3 FY22, up 38% YoY
Ratio of Profit before Tax to AAUM stood at 33.1 bps in Q3 FY22 as compared to 30.1 bps in Q3 FY21
Return on Equity (annualised) was 37.1%

Business Highlights

Overall Quarterly Average AUM (QAAUM) stands at Rs.310,000 Cr as of Dec-21, up 16% YoY due to robust growth in equity segment. However, it has shown a dip on a quarterly basis due to outflows.
ABSL AMC has the highest ever quarterly SIP registration of 324,000 in Q3 FY22
Equity mix is at an all-time high of 41%
Contribution from B-30 cities has increased from 13.1% in Dec-16 to 15.9% in Dec-21
Company’s focus is on increasing retail franchisee
To increase presence in B-30, adopted virtual relationship model.
Equity mutual funds have seen a turnaround across all categories
Passive assets have grown 3 times QoQ
During the quarter, it launched its first Smart Beta and first Debt Index Fund. It has also launched India’s first Silver ETF + FoF Combo on in Jan-22.
Currently, it has 16 products in the pipeline
Company has received approval to provide Portfolio Management Services in Gift City. This will help to cater to the needs of foreign investors and it will also launch schemes for HNIs.

Conference Call Highlights

Company is losing its equity market share mainly because of the NFOs coming up by other players which had earlier had no presence in the category
Other income has dropped significantly – main investment in debt funds – debt schemes have given low returns that is why income is low
Company’s target is to create its presence in the passive products and launch in such a way so that they can offer FoF product
Company is looking at launching Quant based ETF products
Focusing on Hub and Spoke Model to improve the productivity of branches, one of the focus areas

Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell stocks or MF.