HDFC AMC remains the most preferred choice among individual investors but it is losing its market share | HDFC AMC Q2 FY22 Results Analysis

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Financial Highlights

  • Company reported a net profit of Rs. 344.5 Cr in Q2 FY22 as compared to Rs.337.9 Cr in Q2 FY21, up 2%
  • Operating Profit has shown a growth of 13% from Rs.349.1 Cr in Q2 FY21 to Rs. 395.4 Cr in Q2 FY22. It has increased due to increase in AUM and higher percentage of equity AUM but it has seen dilution in margin of some schemes
  • Profit Before Tax decreased by 0.3% YoY from Rs.462.8 Cr to Rs.461.5 Cr
  • Total expenses have increased by 37% sequentially. This is due to increase in employee benefit expenses and aggressive marketing

Business Highlights

  • QAAUM increased from Rs.375,500 Cr in Sep-20 to Rs. 438,900 Cr in Sep-21
  • HDFC AMC remains the most preferred choice among individual investors with a market share of 12.8% of individual monthly average AUM as on Sep-21
  • Overall market share has decreased from 13.6% to 12.1% YoY. As per management, fall in market share is due to lower share in gross inflows and increase in ETF AUM
  • Inflows of Rs. 32.2 lakh were processed through systematic transactions
  • It is working on filling up product gaps by increasing its product offering. Currently, they are working on fixed income side and has filed few documents with regulator. Based on feedback from various stakeholders including mutual fund distributors, company is looking at launching sector/ thematic funds 
  • It has launched HDFC Nifty 50 Equal Weight Index Fund, Banking & Financial Services sector Fund and its first international fund – HDFC Developed World Indexes Fund of Funds during the quarter

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