Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q2 FY22 Earnings Presentation
39 slides from Hdfc Asset Management's earnings presentation, Oct 25, 2021
Slide 1: Outcome of Board Meeting cover letter
HDFC MUTUAL FUND BHAROSA APNO KA Re^o/HDFCAMC/SE/2021-22/69 Date- October 25,2021 National Stock Exchange ofIndia Limited BSE Limited Exchange Plaza, Plot C/1, Block G, Sir PJ Towers, Bandra Kurla Complex, Bandra(East) Dalai Street, Mumbai-400051 Mumbai-400001 Kind Attn: Head - Listing Department Ki
Slide 2: Press Release: Q2 FY22 net profit
ss Press Release 25 October, 2021 HDFC AMC net profit for the Quarter ended September 30, 2021 is ₹3,445 million, a year on year increase of 2% over the quarter ended September 30, 2020. Operating Profit of the company for the quarter ended September 30, 2021 is up by 13% as compared to quarter ende
Slide 3: Corporate Highlights
Mumbai, 25 October, 2021: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended September 30, 2021. CORPORATE HIGHLIGHTS • QAAUM of ₹4,389 billion as of September 30, 2021 compared to ₹3,755 billion as on September 30, 2020, a growth of 17%. 12.1% marke
Slide 4: Financial Highlights for the Quarter and Half Year
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED SEPTEMBER 30, 2021 • The Operating Profit of the company for the quarter ended September 30, 2021 was ₹3,954 million as compared to ₹3,491 million for the quarter ended September 30, 2020. This is an increase of 13%. • Profit before tax for the quarter ende
Slide 5: About HDFC AMC
About HDFC AMC HDFC Asset Management Company Limited (HDFC AMC) is Investment Manager to HDFC Mutual Fund, one of the largest mutual funds 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 F
Slide 6: HDFC Asset Management Company Limited Q2 FY21-22
HDFC Asset Management Company Limited Q2 FY21-22 (For the quarter ended September 30, 2021) 1
Slide 7: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 37% 41% 43% 39% 43% 46% 36.2 36.7 33.2 33.7 4.9 5.1 27.6 4.1 26.9 4.4 4.7 4.2 4.7 4.2 2.9 2.9 QAAUM (₹ trn) 5.3 4.3 10.7 AUM (₹ trn) 11.0 10.5 10.8 9.1 9.2 15.6 14.6 16.8 13.6 10.4 10.3 Sep-20 Jun-21 Sep-21 Sep-20 Jun-21 Sep-21 S
Slide 8: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 52% 54% 55% 16% 16% 16% 37.4 37.4 111.0 102.0 34.1 34.1 6.2 92.8 5.6 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 27.7 17.0 27.7 15.8 4.5 13.3 31.2 28.5 23.3 20.4 18.3 14.4 Sep-20 Jun
Slide 9: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual MAAUM by Asset class Equity MAAUM by Investor category Equity MAAUM by Location 65% 70% 73% 90% 91% 91% 27% 27% 27% 20.4 18.3 16.5 16.5 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 5.5 14.3 1.5 14.3 4.4 14.4 5.4 1.4 3.8 10.4 10.4 5.0
Slide 10: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 33.4 40.2 44.9 104 (SIP contribution in ₹ bn) 92 5.4 (SIP AUM in ₹ tn) 78 4.8 3.4 Sep-20 Jun-21 Sep-21 Sep-20 Jun-21 Sep-21 No. of SIP Accounts (mm) ____________________ Source: AMFI 5
Slide 11: HDFC AMC at a glance
HDFC AMC at a glance Quarterly Average AUM Closing AUM Assets Under ₹ 2,450 bn Assets Under ₹ 2,343 bn Equity-Oriented US$ 33 bn Equity-Oriented US$ 32 bn Management(1) Management(1) 44% ₹ 4,389 bn 56% 46% ₹ 4,357 bn 54% Non-Equity Non-Equity ₹ 1,939 bn US$ 59 bn Oriented ₹ 2,014 bn US$ 59 bn Orient
Slide 12: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 17% YoY 23% 4,169 4,389 4,187 4,357 3,755 3,544 Sep-20 Jun-21 Sep-21 Sep-20 Jun-21 Sep-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2020 Jun-2021 Sep-2021 Sep-2020 Jun-2021 Sep-2021 HDFC MF
Slide 13: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 17% YoY 23% 4,133 4,350 4,150 4,316 3,732 3,519 Sep-20 Jun-21 Sep-21 Sep-20 Jun-21 Sep-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2020 Jun-2021 Sep-2021 Sep-2020 Jun-2021 Sep-20
Slide 14: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 31% YoY 39% 1,877 1,805 1,944 1,723 1,436 1,403 Sep-20 Jun-21 Sep-21 Sep-20 Jun-21 Sep-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2020 Jun-2021 Sep-2021 Sep-202
Slide 15: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 33% YoY 27% 1,568 1,610 1,548 1,588 1,212 1,255 Sep-20 Jun-21 Sep-21 Sep-20 Jun-21 Sep-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2020 Jun-2021 Sep-2021 Sep-2020 Jun-2021 Sep-2021 HDFC MF,
Slide 16: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -28% YoY -18% 995 726 721 775 668 634 Sep-20 Jun-21 Sep-21 Sep-20 Jun-21 Sep-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2020 Jun-2021 Sep-2021 Sep-2020 Jun-2021 Sep-2021 HDFC MF, HDFC MF
Slide 17: AUM by Segment – HDFC AMC and Industry
AUM by Segment – HDFC AMC and Industry Quarterly Average AUM Closing AUM HDFC MF Industry HDFC MF Industry Others Sep-2021 Others Sep-2021 Others Others Liquid 2.7% 13.4% Liquid 2.8% 13.8% 16.4% 14.5% Equity Liquid Equity Equity Liquid Equity 44.2% 13.0% 43.1% 46.2% 11.4% 45.6% Debt Debt Debt Debt 3
Slide 18: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 28% YoY -1% 2,036 2,474 2,603 9.21 9.09 58.8% 8.87 57.9% 55.2% 54.5% Sep-20 Jun-21 Sep-21 Sep-20 Jun-21 Sep-21 Industry Sep-21 Individual MAAUM (Rs bn) Individual customers prefer
Slide 19: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share Sep-20 Jun-21 Sep-21 14.1% 13.5% 12.7% 13.1% 12.8% 12.7% 12.3% 12.2% 12.1% 7.7% 7.6% 7.3% 7.9% 6.8% 7.0% HDFC ICICI Pru SBI ABSL Nippon HDFC ICICI Pru SBI Axis ABSL HDFC ICICI Pru SBI Axis ABSL MF MF MF MF MF MF MF MF MF MF
Slide 20: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 30.0 26% 22% 20% (Unique Investors in million) 26.7 25.0 23.9 21.3 20.0 15.0 10.0 5.5 5.3 5.4 5.0 0.0 Sep-20 Jun-21 Sep-21 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as id
Slide 21: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 85% 74% 11.8 3.22 11.5 11.3 10.8 10.4 9.8 9.0 6.8 1.77 Over 5 Years Over 10 Years 4.9 SIP AUM(2): ₹ 696 bn Strong and stable “Order Book” to provide predictable flows Mar-16 Mar-17
Slide 22: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Sep-2021) Equity-oriented AUM (Sep-2021) HDFC Bank 5.3% HDFC Bank 8.6% Banks 9.5% Direct Banks 13.4% 21.0% Direct 44.9% MFDs 26.4% MFDs National Distributors 41.8% 23.7% National Distributors 19.2% Sep-2020 HDFC Ban
Slide 23: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities #2 Player in B-30 Markets B 30, SBI MF, 15.4% 20.8% Others, 41.1% HDFC MF, 11.1% ICICI Pru MF, 10.9% Nippon UTI MF, T 30, MF, 7.9% 8.2% 84.6% We serve customers across ~98% of all pincodes in India Network of 227 branches with 149 in B-30 cities(2)
Slide 24: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 18% 19% 31% Digitization Across Functions 82% 81% 69% FY 19-20 FY 20-21 FY22 YTD Electronic Physical Strong online presence - dedicated separate digital platforms distributi
Slide 25: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced Voice Search has been enabled on the Fintech Partnerships with the End to End Digital Solution for Corporate Website. setup of an API Gateway. KYC investors: Onboard, Transact and Interact Transact on Call Connekt with a host of new Business Intelligence for MFDs For i
Slide 26: ESG Initiatives
O ESG Initiatives Environment Installation of low consumption, energy efficient fittings. Separation of waste & Bio degradable bags. Deployment of plastic recycling machines. Over 80% of our transactions are processed electronically. Social Equal opportunity employer - 362 out of our 1,203 employees
Slide 27: ESG Initiatives during this Fiscal Year
ESG Initiatives during this Fiscal Year 22
Slide 28: Financials
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Slide 29: Financials Summary – Half Yearly Earnings
Financials Summary – Half Yearly Earnings (₹ mm) Particulars HYE FY22 HYE FY21 Change Income Revenue from Operations 10,494 8,677 21% Other Income 1,670 1,935 -14% Total Income 12,164 10,612 15% Expenses Finance Costs 44 44 0% Fees and Commission Expenses 26 27 -4% Employee Benefit Expenses# 1,633 1
Slide 30: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (₹ mm) Particulars Q2 FY22 Q2 FY21 Change Income Revenue from Operations 5,423 4,562 19% Other Income 661 1,137 -42% Total Income 6,084 5,699 7% Expenses Finance Costs 22 22 0% Fees and Commission Expenses 13 13 0% Employee Benefit Expenses# 798 535 49% Deprec
Slide 31: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (₹ mm) Particulars Q2 FY22 Q1 FY22 Change Income Revenue from Operations 5,423 5,071 7% Other Income 661 1,009 -34% Total Income 6,084 6,080 0% Expenses Finance Costs 22 22 0% Fees and Commission Expenses 13 13 0% Employee Benefit Expenses# 798 835
Slide 32: Notes
NOTES 1. The Nomination and Remuneration Committee of the Board of Directors of the Company at its meeting held on February 22, 2021 had approved grant of 11,45,000 stock options representing 11,45,000 equity shares of ₹5 each, at a grant price of ₹2,934.25 per equity share (being the market price a
Slide 33: Notes
NOTES 2. COVID-19 was declared a pandemic in March 2020 and since then it has had a sizable impact on the economies of various countries. Nations across the globe at this juncture seem to be returning to normalcy as a result of waning infection levels. An aggressive vaccination drive by the governme
Slide 34: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin 63 59 (bps of AAUM) 54 48 48 29 22 13 12 13 37 41 34 36 35 YE FY18 YE FY19 YE FY20 YE FY21 HYE FY22 As per Ind AS Operating margin (bps of AAUM) for Q1 FY 22 and Q2 FY 22 are 35 and 36 respectively ____________________ Bas
Slide 35: Statement of Assets and Liabilities
Statement of Assets and Liabilities (₹ mm) As at As at Sep Particulars March 31, 30, 2021 2021 Assets Financial Assets 49,204 48,717 Non Financial Assets 2,060 2,230 Total Assets 51,264 50,947 Liabilities And Equity Liabilities Financial Liabilities 2,146 2,300 Non-Financial Liabilities 1,232 885 Eq
Slide 36: Breakup of Investments
Breakup of Investments Total Investments: ₹47,928 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 0.7% Arbitrage, 15.3% Debentures & Tax Free Bonds, 10.3% Mutual Funds, 87.5% Liquid and Debt, 84.0% Other Equity, AIFs, etc, 2.2% Mutual Funds Other Equity, AIFs, etc
Slide 37: Return On Equity and Dividend Per Share
Return On Equity and Dividend Per Share Return on Equity(1) FY 17 FY 18 FY 19 FY 20 FY 21 42.8% 40.3% 35.0% 35.6% 30.1% Return on Equity for FY17 & FY18 was reported under Previous GAAP. FY19 onwards, it is reported under Ind AS Dividend Per Share (2) FY 17 FY 18 FY 19 FY 20 FY 21 ₹ 11.5# ₹ 16 ₹ 24
Slide 38: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 33
Slide 39: 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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