Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q2 FY20 Earnings Presentation
28 slides from Hdfc Asset Management's earnings presentation, Oct 25, 2019
Slide 1: Exchange filing cover letter: Outcome of Board Meeting
-i HDFC MUTUAL FUND BHAROSA APNO KA Ref/No/HDFCAMC/SE/2019-20/64 Date-October 25, 2019 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C/l, Block G, Sir PJ Towers, Bandra Kurla Complex, Bandra (East) Dalai Street, Mumbai-400051 Mumbai-400001 Kind Attn: Head - Listing Depart
Slide 2: HDFC Asset Management Company Limited Q2 FY19-20
HDFC Asset Management Company Limited Q2 FY19-20 1
Slide 3: Industry - AUM and Net Sales
Industry - AUM and Net Sales 25% 34% 35% 36% 43% 42% 43% 43% 43% 23.8 24.3 24.5 2.3 22.0 1.9 2.1 21.4 Mar-14 to Sep-19 CAGR: 0.8 1.5 Overall: 22%; Equity: 36%; Debt:8%; Liquid: 26% 4.4 4.7 4.7 17.5 3.4 3.9 0.5 3.1 12.3 7.3 7.0 7.1 8.0 7.3 10.8 0.2 AUM (₹ trn) 0.2 2.0 8.3 1.6 7.6 0.2 1.3 5.8 5.3 4.7
Slide 4: Individual / Institutional MAAUM, SIP Flows, B-15/B30
Individual / Institutional MAAUM, SIP Flows, B-15/B30 MAAUM of Individual Investors(1)(2)(3) SIP Flows(1) MAAUM of B-15/B-30(1)(2) 39.2 41.4 47.2 54.8 70.9 77.5 82.1 83.4 85.2 10.1 13.5 21.1 24.4 26.2 27.4 28.4 16% 16% 16% 17% 19% 15% 15% 15% 16% (MAAUM in ₹ tn) B15 B30 (SIP contribution in ₹ bn) 81
Slide 5: HDFC AMC at a glance
HDFC AMC at a glance 45% Equity-Oriented Assets Assets Under Management(1) 55% Non-Equity Oriented Assets ₹ 1,651 bn ₹ 2011 bn ₹ 3,662 bn US$ 23.3 bn US$ 28.4 bn US$ 51.7 bn 9.4 mm ₹ 110 bn Live Accounts(1) PMS & SMA AUM(1) (3) 213 Branches(1)(2); 80k+ Empaneled 1,217 Employees(1) Distribution Partn
Slide 6: Total AUM and Market Share
Total AUM and Market Share Total AUM(1) ₹ billion Market Share in Total AUM(2) YoY 25% HDFC MF, Sep-2019 14.9% 3,567 3,662 3,439 2,920 2,926 June-2019 HDFC MF, Sep-2018 2,306 HDFC MF, 14.7% 13.3% 1,656 1,506 1,089 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 ____________________ (1
Slide 7: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share #1 Market Share in Actively Managed Equity-oriented Actively Managed Equity-oriented AUM(1) AUM(2) ₹ billion YoY 11 % HDFC MF Sep-2019 15.8% 1,643 1,689 1,637 1,449 1,476 957 June-2019 Sep-2018 HDFC MF HDFC MF 675 16.2% 16.0% 629 406 Mar-14 Mar-1
Slide 8: AUM by Segment – HDFC AMC and Industry
AUM by Segment – HDFC AMC and Industry HDFC AMC MF AUM by Segment (1)(3) Industry AUM by Segment(2)(3) Sep-2019 Sep-2019 Others Others 1.8% 9.4% Liquid 26.6% Liquid 19.0% Equity Equity 42.5% 45.1% Debt Debt 26.6% 29.1% June-2019 Sep-2018 June-2019 Sep-2018 Others Others Others Others 1.4% 1.5% 8.5%
Slide 9: Individual Investors – no of Accounts & MAAUM
Individual Investors – no of Accounts & MAAUM Number of Live Individual Accounts (in millions) (1) Individual MAAUM % of Total(1) YoY 10% YoY 9% 624 931 945 1,350 1,863 1,985 2,167 2,214 2,180 9.20 9.39 64.5% 9.03 63.0% 8.62 62.2% 8.05 59.2% 57.4% 56.3% 56.0% 54.6% 54.1% 52.8% 6.15 5.55 5.14 4.44 Ma
Slide 10: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share (Sep-19) Individual Assets Market Share (June-19) Individual Assets Market Share (Sep-18) 15.1% 15.6% 15.7% 14.0% 13.6% 13.6% 10.4% 9.8% 9.4% 9.1% 9.9% 8.9% 8.7% 8.6% 7.8% HDFC ICICI Pru SBI ABSL MF Nippon HDFC ICICI Pru SB
Slide 11: Unique Investors - HDFC AMC vs MF Industry
Unique Investors Unique Investors- HDFC AMC vs MF Industry 25.0 28% 28% 28% (Unique Investors in million) 19.6 20.0 20.0 18.4 15.0 10.0 5.1 5.4 5.5 5.0 0.0 Sep’18 June'19 Sep'19 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as identi
Slide 12: Systematic Transactions
Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Strong Growth in Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 3.47 12.7 12.8 79.5% 11.8 67.2% 11.5 11.5 6.8 Over 5 Years Over 10 Years 4.7 4.9 1.23 3.1 Strong and growing “Order Book” to provide predictable f
Slide 13: Multi-channel Distribution Network
Multi-channel Distribution Network Well Diversified Distribution Channel Total AUM (Sep-19) Equity-oriented AUM (Sep-19) HDFC Bank 7.2% HDFC Bank 10.0% Banks, 13.0% Direct 20.0% Banks, 16.1% Direct 42.5% IFAs 27.3% National Distributors IFAs National Distributors 22.8% 41.1% 17.3% June-2019 HDFC Ban
Slide 14: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities(1) #2 Player in B-30 Markets(1) B 30, SBI MF, 12.7% 19.1% Others, 37.3% HDFC MF, 12.5% ICICI Pru MF, 11.2% Nippon UTI MF, T 30, MF, 9.8% 10.1% 87.3% Network of 213 branches with 137 in B-30 cities(2) c. 80k+ empaneled distribution partners ________
Slide 15: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 32.8% 35.8% 30.7% {•} 69.9% Digitization Across Functions 67.2% 64.2% 69.3% 30.1% FY15 FY19 H1FY19 H1FY20 Electronic Physical Strong online presence - dedicated separate dig
Slide 16: Financials
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Slide 17: Financials Summary – Half Yearly Earnings
Financials Summary – Half Yearly Earnings (₹ mm) Particulars HYE FY20 HYE FY19 Change Income Revenue from Operations 10,024 9,516 5% Other Income 994 648 53% Total Income 11,018 10,164 8% Expenses Finance Costs 46 - - Fees and Commission Expenses 122 1,574 -92% Impairment on Financial Instruments -
Slide 18: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (₹ mm) Particulars Q2 FY20 Q2 FY19 Change Income Revenue from Operations 4,980 4,804 4% Other Income 510 349 46% Total Income 5,490 5,153 7% Expenses Finance Costs 23 - - Fees and Commission Expenses 8 735 -99% Impairment on Financial Instruments - 212 - Emplo
Slide 19: Notes
NOTES 1. The Company has elected to exercise the option of a lower tax rate provided under Section 115BAA of the Income-tax Act, 1961, as introduced by the Taxation Laws (Amendment) Ordinance, 2019 dated September 20, 2019. Accordingly, the Company has recognised provision for income tax for the hal
Slide 20: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses PBT&OI (bps of AAUM) 63 59 54 29 22 13 37 41 34 YE FY18 YE FY19 HYE FY 20 As per Ind AS ____________________ Based on internal computations 19
Slide 21: Statement of Assets and Liabilities
Statement of Assets and Liabilities (₹ mm) As at As at Particulars September March 31, 30, 2019 2019 Assets Financial Assets 33,843 30,978 Non Financial Assets 2,805 1,260 Total Assets 36,648 32,238 Liabilities And Equity Liabilities Financial Liabilities 2,057 1,130 Non-Financial Liabilities 459 40
Slide 22: Return On Equity and Dividend Payout Ratio
Return On Equity and Dividend Payout Ratio Return on Equity(1) FY15 HYE 20 FY16 FY17 FY18 FY19* (annualized) 41.1% 42.1% 42.8% 40.3% 35.0% 40.7% *Return on Equity has reduced in FY 19 due to substantial increase in average networth Return on Equity from FY15 to FY18 was under Previous GAAP whereas f
Slide 23: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 22
Slide 24: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer or invitation to sell or the recommendation or solicitation of an offer or invitation to purchase any securities (“Securities”) of HDFC Asset Management Company Limited (the “Company”) in India, the United
Slide 25: HDFC AMC Q2FY20 net profit at ₹3,683 million, up 79%
ss Press Release 25 October, 2019 HDFC AMC Q2FY20 net profit at ₹3,683 million, a year on year increase of 79%. AUM rises to ₹3,662 billion, a year on year increase of 25%. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period ended September 30, 2019. India’s
Slide 26: Corporate Highlights
Mumbai, 25 October, 2019: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended September 30, 2019. CORPORATE HIGHLIGHTS Total AUM of ₹3,662 billion as of September 30, 2019 compared to ₹2,926 billion as on September 30, 2018, a growth of 25%. 14.9% m
Slide 27: Financial Highlights for the Quarter Ended September 30, 2019
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED SEPTEMBER 30, 2019 • The Operating Profit of the company for the quarter ended September 30, 2019 was ₹3,765 million as compared to ₹2,623 million for the quarter ended September, 2018. This is an increase of 44%. • Profit before tax for the quarter ended S
Slide 28: About HDFC AMC
About HDFC AMC HDFC Asset Management Company Limited (HDFC AMC) is Investment Manager to HDFC Mutual Fund, the largest mutual fund in the country. It was incorporated under the Companies Act, 1956, on 10th December 1999 and was approved to act as an Asset Management Company for HDFC Mutual Fund by S
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