UTI AMC reported strong 67% YoY growth in Profit After Tax | Q2 FY22 Results Analysis

Q1 FY22 Financial Highlights

• Profit After Tax increased by 67% from Rs.119 Cr in Q2 FY21 to Rs.199 Cr in Q2 FY22, up 28% QoQ
• Profit Before Tax increased by 53% from Rs.147 Cr in Q2 FY21 to Rs.225 Cr in Q2 FY22, up 18% QoQ
• Revenue from operations grew by 38% to Rs.380 Cr in Q2 FY21, which include sale of services Rs.280 Cr, up 41% YoY.

• Operating Profit margin stands at 62% compared to 58% in last quarter
• Board has approved a final dividend of Rs.17 for FY21 as compared to Rs.7 for FY20

Business Highlights

• Total AUM of UTI has increased by 21% from Rs. 10,43,198 Cr in Sep-20 to Rs. 12,62,546 in Q2 FY22
• Out of the total AUM, PMS constitute 66% of total AUM, MF – 16%, retirement services – 15% and alternate investment funds – 3%
• Mutual Fund QAAUM (Quarterly Average Assets Under Management) has shown a YOY growth of 34.7% from Rs. 155,190 Cr in Sep-20 to Rs. 208,971 Cr  in Sep-21
• Total Equity and hybrid QAAUM has reported a growth of 49.3%. Equity QAAUM has grown by 60.8% and hybrid QAAUM has grown by 27.1%.
• As of Sep-21, it has good equity mix

• SIP AUM increased by 55.4% from Rs.11,187 Cr in Sep-20 to Rs.17,389 Cr in Sep-21
• Number of digital purchase transactions grew by 106.5% and number of digital SIP transactions grew by 203.1% YoY. QoQ digital purchase transactions increased by 31.55%. Digital channel contributed 32.54% to total new purchase transactions.
• Total number of employees have increased from 1457 in Q1 FY22 to 1426 in Q2 FY22

Other Key Highlights

• Top priority strategy for sales engagement is to increase the number of SIP selling mutual fund distributors and their share.
• UTI Capital has filed for two Category II Alternate Investment Funds for regulatory approval
• UTI AMC has two more funds in the NFO pipeline. It has got SEBI approval to launch multicap fund and also some passive funds