HDFC AMC – First Edit Q1FY22 – ICICI Direct

(CMP – Rs. 3067, MCap – Rs. 65348 crore)

HDFC AMC had a weak quarter with continued decline in market share and an operational revenue trajectory lagging behind AUM growth. PAT stimulated by other income.

Summary of revenues for the first quarter of fiscal 22

– Industry AUM increased by Rs. 31.4 lakh crore from Q4FY21 to Rs. 33.7 lakh crore in the first quarter of fiscal 22, largely due to the recovery in the stock markets . Assets under management related to equities increased by 12.3% QoQ to Rs. 14.6 lakh crore, the proportion of AUM equity stood at 43.3% versus 41.4% QoQ. Borrowing programs saw a slight exit, decreasing by around 1% QoT. SIP entries were sequentially stable at Rs. 9,200 crore

– HDFC AMC’s AUM also saw 5.9% QoQ growth at Rs. 418,700 crore (17% year-on-year), mainly driven by an approximately 9% increase in QoQ in assets under equity management at Rs. 180,500 crore and now forms 43% of all assets under management. Assets under debt management increased by 1.7% QoQ to Rs. 154,800 crore, now forming 36.9% of total assets under management

– HDFC AMC continued to see its market share decline from 13.1% in Q3FY21 to 12.6% in T4FY21 to 12.4% in Q1FY22. The market share of assets under management equities (actively managed) also decreased, from 13.4% in Q3FY21 to 12.9% in Q4FY21 and to 12.6% in Q1FY22

– Total operating income increased 23.7% yoy and 11.4% qoq to Rs. 608 crore, but this was mainly due to the massive 136.7% sequential increase in other income at Rs. 101 crores. Core income growth was stable at 0.8% QoQ, which is the result of a 3bp QoQ drop in yields to 48bp. Yields, despite a sequential increase in equity assets under management, have fallen, which could indicate a greater mobilization in passive funds

– For industry, SIP streams were stable at Rs. 9,200 crore in June 2021 compared to March levels, however, for moderate HDFC AMC SIP streams from Rs. 1,040 crore in March 2021 to Rs. 980 crore in June 2021

We will publish a detailed report soon.

Shares of HDFC Asset Management Company Ltd were last trading in BSE at Rs.3089.3 from the previous close of Rs. 3087.05. The total number of shares traded during the day was 213,319 in more than 25,290 trades.

The share hit an intraday high of Rs. 3,289.25 and an intraday low of 3,062.1. The net turnover during the day was Rs. 680 971 563.

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