Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q3 FY2019 Earnings Presentation
31 slides from Hdfc Asset Management's earnings presentation, Jan 21, 2019
Slide 1: Outcome of Board Meeting cover letter
BHAROSA APNO KA Ref/No/HDFCAMC/SE/2018-19/55 Date — January 21, 2019 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C/1, Block G, Sir PJ Towers, Bandra Kurla Complex, Bandra (East) Dalal Street, Mumbai — 400051 Mumbai — 400001 Kind Attn: Head — Listing Department Kind Attn
Slide 2: HDFC AMC net profit rises 25% in Q3 FY'19
Press Release 21 January, 2019 HDFC AMC net profit rises 25% in Q3 FY’19 AUM rises to ₹3,291 billion, making it the largest Mutual Fund in the country HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period ended Dec 31, 2018 • Regains No.1 position, becomes India’
Slide 3: Corporate Highlights for the Quarter (3Q FY19)
CORPORATE HIGHLIGHTS FOR THE QUARTER (3Q FY19) • Total AUM of ₹3,291 billion as of December 31, 2018 compared to ₹2,933 billion as on December 31, 2017, a growth of 12% with 14.4% market share in total AUM of the mutual fund industry. • AUM in actively managed equity oriented funds i.e. equity orien
Slide 4: Background and Financial Highlights for the Quarter
BACKGROUND SEBI Circular dated 22nd October 2018 has banned payment of upfront commission & mandated a full trail model for distributor commission. It has further mandated that all scheme related expenses including distributor commission shall have to be paid by the schemes of the MF & not by the AM
Slide 5: 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
Slide 6: HDFC Asset Management Company Limited Q3 FY18-19
HDFC Asset Management Company Limited Q3 FY18-19 1
Slide 7: Industry - AUM and Net Sales
Industry - AUM and Net Sales 34% 35% 36% 44% 43% 44% 45% 22.9 21.4 22.0 1.1 21.3 0.8 1.0 Mar-14 to Dec-18 CAGR: 0.8 Overall: 24%; Equity: 40%; Debt: 9%; Liquid: 29% 17.5 2.9 3.4 3.9 4.5 0.5 3.1 12.3 8.3 8.0 7.3 7.0 10.8 0.2 AUM (₹ trn) 0.2 2.0 1.6 7.6 5.3 5.8 9.4 9.2 9.8 10.2 6.3 3.7 4.3 Mar-15 Mar-
Slide 8: 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) 47.2 54.8 66.1 70.9 77.5 79.8 13.5 18.8 21.1 24.4 25.4 16% 16% 17% 19% 15% 15% 41.4 10.1 11.3 MAAUM in ₹ bn (SIP contribution in ₹ bn) B15 B30 80 (MAAUM ₹ trn) 77 20,743
Slide 9: HDFC AMC at a glance
HDFC AMC at a glance 48% Equity-Oriented Assets Assets Under Management(1) 52% Non-Equity Oriented Assets ₹ 1,580 bn ₹ 1,710 bn ₹ 3,291 bn US$ 22.7 bn US$ 24.5 bn US$ 47.2 bn 8.9 mm ₹ 91.6 bn Live Accounts(1) PMS & SMA AUM(1) (3) 210 Branches(1)(2); 75k+ Empaneled 1,167 Employees(1) Distribution Par
Slide 10: Total AUM and Market Share
Total AUM and Market Share Total AUM(1) Market Share in Total AUM(2) ₹ billion HDFC MF, * YoY 12% Dec-2018 14.4% 3,291 2,933 2,920 2,926 2,306 Sep-2018 HDFC MF, Dec-2017 HDFC MF, 13.3% 13.8% 1,656 1,506 Mar-15 Mar-16 Mar-17 Dec-17 Mar-18 Sep-18 Dec-18 ____________________ (1) Source: Internal *Due t
Slide 11: 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 HDFC MF YoY 3 % Dec-2018 16.0% 1,496 1,476 1,535 1,449 957 Sep-2018 Dec-2017 HDFC MF HDFC MF 675 629 16.0% 17.1% Mar-15 Mar-16 Mar-17 Dec
Slide 12: AUM by Segment – HDFC AMC and Industry
AUM by Segment – HDFC AMC and Industry HDFC AMC MF AUM by Segment (1) Industry AUM by Segment(2) Dec-2018 Others Dec-2018 0.3% Others Liquid 5.0% 23.9% Liquid 19.5% Equity Equity 48.0% 44.8% Debt Debt 27.8% 30.7% Sep-2018 Dec-2017 Sep-2018 Dec-2017 Others Others Others Others 0.2% 0.3% 4.4% 3.6% Liq
Slide 13: 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 17% 931 945 1,350 1,850 1,863 1,985 2,033 8.86 Mar-14 to Dec-18 CAGR: 28% 8.62 64.5% 62.2% 62.2% 61.8% 8.05 7.56 56.3% 56.0% 52.8% 53.6% 6.15 5.55 5.14 Mar-15
Slide 14: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share (Dec-18) Individual Assets Market Share (Sep-18) Individual Assets Market Share (Dec-17) 15.4% 15.1% 16.0% 13.9% 14.0% 14.7% 9.5% 9.4% 9.3% 9.8% 9.4% 9.1% 9.9% 9.8% 8.3% HDFC ICICI Pru ABSL SBI Reliance HDFC ICICI Pru ABSL
Slide 15: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 25.0 28% 28% 27% (Unique Investors in million) 20.0 19.1 18.4 15.7 15.0 10.0 5.1 5.2 5.0 4.3 0.0 Dec’17 Sep'18 Dec'18 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry 10 Source: CAMS. Note: Unique Investors include
Slide 16: Systematic Transactions
Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Strong Growth in Systematic Transactions (₹ mm) Long Tenure SIP Book(1) 3.36 77.1% 11,531 11,470 11,689 64.2% 10,698 6,768 1.62 5,494 4,999 Over 5 Years Over 10 Years 4,745 4,854 Strong and growing “Order Book” to prov
Slide 17: Multi-channel Distribution Network
Multi-channel Distribution Network Well Diversified Distribution Channel Total AUM (Dec-18) Equity-oriented AUM (Dec-18) HDFC Bank 7.8% HDFC Bank 10.9% Banks, 13.9% Direct 17.7% Banks, 17.2% Direct 39.7% IFAs 28.5% National Distributors 22.0% IFAs National Distributors 43.1% 18.0% Sep-2018 HDFC Bank
Slide 18: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities(1) #2 Player in B-30 Markets(1) B 30, SBI MF, 14.3% 17.8% Others, 36.4% HDFC MF, 11.9% Reliance ICICI Pru MF, 11.8% MF, 10.9% UTI MF, T 30, 11.2% 85.7% Network of 210 branches with 134 in B-30 cities(2) c. 75k+ empaneled distribution partners _____
Slide 19: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 28.8% 49.2% 51.8% 69.9% Digitization Across Functions 71.2% 50.8% 48.2% 30.1% FY15 FY18 Q3FY18 Q3FY19 Electronic Physical Strong online presence - dedicated separate digital
Slide 20: Recent Developments
Recent Developments o Amendments in TER as per SEBI notification dated 13th December 2018, effective from 1st April 2019. o Effective 22nd October 2018, regulator has made following key changes • All scheme related expenses, including distributor commissions, to be paid from scheme accounts only and
Slide 21: Financials
Financials 16
Slide 22: Ind AS Transition
Ind AS Transition ▪ Adoption of Indian Accounting Standards (Ind AS) with effect from 1 st April 2018. ▪ Results of Q3 FY19 & 9M FY19 are prepared as per Ind AS requirements. ▪ Accordingly figures for Q3 FY18 & 9M FY18 have been restated. Key Changes Remarks Investments Investments are fair valued t
Slide 23: PAT Reconciliation - Previous GAAP vs Ind AS – Q3 FY18
PAT Reconciliation- Previous GAAP Vs Ind AS – Q3 FY 18 (Rs. mm) Particulars Q3 FY 18 Net profit after tax as reported under Previous GAAP 1,846 Adjustment increasing / (decreasing) net profit after tax as reported under Previous GAAP (net of tax): Fair value change in investments 139 Fair valuation
Slide 24: Financials Summary – Nine months ended Earnings
Financials Summary – Nine months ended Earnings (Rs. mm) Particulars 9M FY19 9M FY18 Change Revenue from Operations 14,287 12,881 11% Other Income 1,206 817 48% Total Revenue 15,493 13,698 13% Expenses Employee Benefit Expense 1,587 1,422 12% Depreciation and Amortization Expense 94 70 34% Business
Slide 25: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (Rs. mm) Particulars Q3 FY19 Q3 FY18 Change Revenue from Operations 4,771 4,676 2% Other Income 559 276 103% Total Revenue 5,330 4,952 8% Expenses Employee Benefit Expense 505 503 0% Depreciation and Amortization Expense 37 25 49% Business Development and Othe
Slide 26: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses PBT&OI (bps of AAUM) 63 63 65 64 60 53 29 25 29 33 44 34 34 35* 34 31 21 19 9M FY18 9M FY19 HDFC AMC Reliance AMC ICICI Pru AMC ABSL AMC FY18 as per previous GAAP 9M FY18 as per Ind AS 9M FY19 as per Ind AS FY18 *Adjusted for non recurring
Slide 27: Profitable…
Profitable… FY17 Profit after tax (Rs bn) FY18 Profit after tax (Rs bn) 5.50 7.22 4.81 6.26 4.05 5.05 3.31 3.22 2.24 2.21 FY17 ICICI Pru Reliance SBI ABSL FY18 ICICI Pru Reliance SBI ABSL AMC AMC AMC AMC AMC AMC AMC AMC Most profitable asset management company in India in terms of net profits since
Slide 28: Financials Summary – Historical Trends
Financials Summary – Historical Trends Figures In Rs mm Revenue from Operations Operating Profit 17,598 9,550 14,800 12,260 6,919 9,527 5,459 5,487 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Profit before tax Profit after tax 10,625 7,216 7,998 5,502 5,877 6,005 3,925 4,074 FY15 FY16 FY17 FY18 FY15 FY1
Slide 29: ROE and Dividend Payout Ratio
ROE and Dividend Payout Ratio 40% + Return on Equity(1) FY15 FY16 FY17 FY18 41.1% 42.1% 42.8% 40.3% 40% 40% + return on average net worth every year since FY15 Consistently improving Dividend Payout Ratio(2) ____________________ 24 (1) Calculated as Profit After Tax divided by average Net Worth (2)
Slide 30: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 25
Slide 31: 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
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