Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q2 FY21 Earnings Presentation
37 slides from Hdfc Asset Management's earnings presentation, Oct 22, 2020
Slide 1: Exchange filing cover letter: Outcome of Board Meeting
-t HDFC MUTUAL FUND BHAROSA APNO KA Ref/No/HDFCAMC/SE/2020-21/70 Date - October 22, 2020 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 Depa
Slide 2: HDFC Asset Management Company Limited Q2 FY20-21
HDFC Asset Management Company Limited Q2 FY20-21 (For the quarter ended September 30, 2020) 1
Slide 3: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 39% 37% 37% 43% 38% 39% 27.6 26.9 25.7 25.5 24.6 2.9 24.5 2.9 2.2 2.4 2.6 5.3 2.3 4.3 5.6 4.0 4.9 5.5 9.1 9.2 QAAUM (₹ trn) 7.9 7.8 8.1 AUM (₹ trn) 7.8 10.0 9.0 10.3 10.4 9.8 10.4 Sep-19 Jun-20 Sep-20 Sep-19 Jun-20 Sep-20 Sep-19
Slide 4: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 54% 51% 52% 16% 15% 16% 91.1 92.8 27.7 27.7 85.2 25.6 26.1 25.6 26.1 4.5 4.0 4.0 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 13.3 11.8 12.9 22.1 23.3 21.6 13.8 14.4 13.2 Sep-19 Jun-2
Slide 5: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual MAAUM by Asset class Equity MAAUM by Investor category Equity MAAUM by Location 68% 68% 68% 90% 90% 90% 25% 26% 27% 10.4 10.4 14.4 10.0 10.0 13.8 9.5 1.0 9.5 13.2 1.0 1.0 2.8 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 2.5 4.5 4.6 2.
Slide 6: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 28.4 32.3 33.4 83 3.4 79 78 (SIP contribution in ₹ bn) 3.0 (SIP AUM in ₹ tn) 2.9 Sep-19 Jun-20 Sep-20 Sep-19 Jun-20 Sep-20 No. of SIP Accounts (mm) ____________________ (1) Source: AMFI 5
Slide 7: HDFC AMC at a glance
HDFC AMC at a glance Quarterly Average AUM Closing AUM Assets Under ₹ 2,286 bn Assets Under ₹ 2,107 bn Equity-Oriented US$ 31 bn Equity-Oriented US$ 29 bn Management(1) Management(1) 39% ₹ 3,755 bn 61% 41% ₹ 3,544 bn 59% Non-Equity Non-Equity ₹ 1,469 bn US$ 51 bn Oriented ₹ 1,437 bn US$ 48 bn Orient
Slide 8: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY -3% YoY -0% 3,766 3,562 3,755 3,662 3,575 3,544 Sep-19 Jun-20 Sep-20 Sep-19 Jun-20 Sep-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2020 Sep-2020 Sep-2019 Jun-2020 HDFC MF, Sep-2019 Jun-202
Slide 9: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -11% YoY -14% 1,610 1,637 1,293 1,436 1,378 1,403 Sep-19 Jun-20 Sep-20 Sep-19 Jun-20 Sep-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2020 Sep-2020 HDFC MF, HDFC
Slide 10: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 15% YoY 19% 1,212 1,255 1,057 992 1,057 1,054 Sep-19 Jun-20 Sep-20 Sep-19 Jun-20 Sep-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2020 Sep-2020 HDFC MF, HDFC MF, Sep-2019 Jun-2020 13.4% Sep-
Slide 11: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -4% YoY -13% 1,184 1,035 1,033 995 890 775 Sep-19 Jun-20 Sep-20 Sep-19 Jun-20 Sep-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2020 Sep-2020 HDFC MF, HDFC MF, Sep-2019 Jun-2020 18.7% Sep-2
Slide 12: 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-2020 Others Others Sep-2020 Others 2.1% 10.4% 2.2% 10.7% Liquid Liquid Equity Equity 21.9% Equity 26.5% Equity Liquid 38.9% 39.1% Liquid 37.5% 40.5% 16.0% 19.3% Debt Debt Debt 32.3%
Slide 13: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY -6% YoY -2% 2,164 1,924 2,036 9.39 9.35 9.21 57.0% 55.2% 51.7% 52.0% Sep-19 Jun-20 Sep-20 Sep-19 Jun-20 Sep-20 Industry Jun-20 (2) Individual MAAUM (Rs bn)(1) Individual customers
Slide 14: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share Sep-20 Jun-20 Sep-19 14.1% 14.6% 15.6% 13.1% 13.5% 12.2% 12.0% 13.6% 10.4% 7.7% 7.8% 6.9% 8.7% 7.8% 6.8% HDFC MF ICICI Pru SBI MF ABSL MF Nippon HDFC ICICI Pru SBI ABSL MF Nippon HDFC MF ICICI Pru SBI MF ABSL MF Nippon MF M
Slide 15: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 25.0 28% 26% 26% (Unique Investors in million) 21.1 21.3 20.0 20.0 15.0 10.0 5.5 5.6 5.5 5.0 0.0 Sep-19 Jun-20 Sep-20 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as identif
Slide 16: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 83% 12.8 71% 11.8 11.5 11.3 2.98 9.6 9.0 6.8 Over 5 Years Over 10 Years 4.7 4.9 1.23 SIP AUM(2): ₹ 454 bn 3.1 Strong and stable “Order Book” to provide predictable flows Mar-14 Mar-
Slide 17: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Sep-20) Equity-oriented AUM (Sep-20) HDFC Bank 5.4% HDFC Bank 9.4% Banks 10.0% Direct Banks 14.9% 19.5% Direct 47.4% MFDs 24.8% MFDs National Distributors 41.2% 24.4% National Distributors 17.8% Sep-2019 Jun-2020 HD
Slide 18: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities #2 Player in B-30 Markets B 30, 14.2% SBI MF, 20.7% Others, 39.1% HDFC MF, 11.7% ICICI Pru MF, 11.2% UTI MF, T 30, 8.6% ABSL, 8.7% 85.8% We serve customers across 98% of all pincodes in India Network of 223 branches with 146 in B-30 cities(2) 65k+
Slide 19: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 13% 33% 31% 70% Digitization Across Functions 87% 67% 69% 30% FY15 FY19 FY20 FY21 YTD Electronic Physical Strong online presence - dedicated separate digital platforms distr
Slide 20: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced hdfcfund.com $ WhatsApp for Investors Investors & Partners: Quick links for easy Videos to help investors and for easy transactions, online transactions, website landing page partners in their Digital journey statements and more assisting with digital transactions etc.
Slide 21: Financials
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Slide 22: Financials Summary – Half Yearly Earnings
Financials Summary – Half Yearly Earnings (₹ mm) Particulars HYE FY21 HYE FY20 Change Income Revenue from Operations 8,677 10,024 -13% Other Income 1,935 994 95% Total Income 10,612 11,018 -4% Expenses Finance Costs 44 46 -4% Fees and Commission Expenses 27 122 -78% Employee Benefit Expenses 1,061 1
Slide 23: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (₹ mm) Particulars Q2 FY21 Q2 FY20 Change Income Revenue from Operations 4,562 4,980 -8% Other Income 1,137 510 123% Total Income 5,699 5,490 4% Expenses Finance Costs 22 23 -4% Fees and Commission Expenses 13 8 63% Employee Benefit Expenses 535 578 -7% Deprec
Slide 24: Normalised Profit After Tax
Normalised Profit After Tax (₹ mm) Particulars Q2 FY21 Q2 FY20 Change Profit After Tax (PAT) 3,379 3,683 -8% Benefit of change in taxation rate, pertaining to Q1 (June 19), included in Q2 (September 19) - (343) Normalised PAT 3,379 3,340 1% During the previous year, the Company had elected to exerci
Slide 25: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (₹ mm) Particulars Q2 FY21 Q1 FY21 Change Income Revenue from Operations 4,562 4,115 11% Other Income 1,137 798 42% Total Income 5,699 4,913 16% Expenses Finance Costs 22 22 0% Fees and Commission Expenses 13 14 -7% Employee Benefit Expenses 535 526
Slide 26: Notes
NOTES 1. The Covid 19 pandemic and consequent lockdown earlier this year impacted a whole range of economic activities adversely. The phase wise opening up initiated in the quarter ended June 30, 2020 has led to a recovery in varied measures across different sectors of the economy, industries and bu
Slide 27: Notes
NOTES 2. The Company holds certain Non Convertible Debentures (NCDs) that are secured by a pledge of listed equity shares. These NCDs are classified as financial assets at fair value through profit and loss. Hence, any changes in their fair value on the reporting date is reflected as a part of ‘Othe
Slide 28: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 63 59 54 47 29 22 13 12 37 41 34 35 YE FY18 YE FY19 YE FY20 HYE FY21 As per Ind AS Operating margin (bps of AAUM) for Q1 FY 21 and Q2 FY 21 are 34 and 37 respectively ____________________ Based on internal co
Slide 29: Statement of Assets and Liabilities
Statement of Assets and Liabilities (₹ mm) As at As at Particulars September March 31, 30, 2020 2020 Assets Financial Assets 41,178 40,662 Non Financial Assets 2,139 2,425 Total Assets 43,317 43,087 Liabilities And Equity Liabilities Financial Liabilities 1,945 2,251 Non-Financial Liabilities 564 54
Slide 30: Breakup of Investments
Breakup of Investments Total Investments: ₹ 40,000 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 0.5% Arbitrage, 18.2% Debentures & Tax Free Bonds, 14.5% Mutual Funds, 84.0% Liquid and Debt, 81.3% Other Equity, AIFs, etc, 1.5% Mutual Funds Other Equity, AIFs, et
Slide 31: Return On Equity and Dividend Per Share
Return On Equity and Dividend Per Share Return on Equity(1) FY18 FY19 FY20 40.3% 35.0% 35.6% Return on Equity has reduced in FY 19 due to substantial increase in average networth Return on Equity of FY18 was under Previous GAAP whereas for FY19 onwards, it is under Ind AS Dividend Per Share (2) FY 2
Slide 32: Thank You
ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 31
Slide 33: 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 34: HDFC AMC net profit for the quarter ended September 2020 at ₹3,379 million
ss Press Release 22 October, 2020 HDFC AMC net profit for the quarter ended September 2020 at ₹3,379 million, a year on year increase of 1% over the adjusted net profit* for quarter ended September 2019. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period ended
Slide 35: Corporate Highlights
Mumbai, 22 October, 2020: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended September 30, 2020. CORPORATE HIGHLIGHTS • QAAUM of ₹3,755 billion as of September 30, 2020 compared to ₹3,766 billion as on September 30, 2019, a fall of 0%. 13.6% market s
Slide 36: Financial Highlights for the Quarter Ended September 30, 2020
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED SEPTEMBER 30, 2020 Our financial performance in the first quarter had shown a worsening trend due to the effects of the Covid-19 on the markets. While there continues to be uncertainty regarding how the Covid-19 pandemic will ultimately pan out, markets hav
Slide 37: 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 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 Fu
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