Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q1 FY2023 Earnings Presentation
38 slides from Hdfc Asset Management's earnings presentation, July 2022
Slide 1: HDFC Asset Management Company Limited Q1 FY22-23
HDFC Asset Management Company Limited Q1 FY22-23 (For the quarter ended June 30, 2022) 1
Slide 2: HDFC AMC at a glance
HDFC AMC at a glance ₹ 4,153 bn ₹ 3,966 bn QAAUM1 Closing AUM1 ₹ 2,564 bn ₹ 90 bn Individual PMS & SMA ₹ 2,068 bn ₹ 2,017 bn MAAUM1 AUM2 equity oriented equity oriented AUM ₹ 1,968 bn ₹ 1,268 bn ₹ 691 bn Actively Managed Equity-oriented - QAAUM1 Debt - QAAUM1 Liquid - QAAUM1 11.5% 13.6% 13.1% market
Slide 3: Industry
Industry
Slide 4: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 41% 46% 46% 43% 48% 48% 38.4 37.7 37.6 35.6 33.2 33.7 5.5 5.6 5.5 5.3 4.1 5.1 4.4 4.5 5.3 4.7 4.7 4.2 QAAUM (₹ trn) 10.2 9.3 9.5 AUM (₹ trn) 10.5 8.5 10.8 17.6 17.5 18.1 17.2 13.6 14.6 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Ju
Slide 5: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 54% 55% 55% 16% 17% 17% 37.7 37.0 133.9 37.7 37.0 128.7 34.1 34.1 6.2 6.1 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 102.0 16.9 5.6 16.6 15.8 31.5 30.9 28.5 18.3 20.8 20.4 Jun-21 Ma
Slide 6: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual MAAUM by Asset class Equity MAAUM by Investor category Equity MAAUM by Location 70% 75% 76% 91% 90% 90% 27% 27% 27% 20.8 20.4 17.3 17.1 17.3 17.1 18.3 5.1 1.7 1.6 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 5.0 14.3 14.3 4.7 4.5 5.4
Slide 7: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 40.2 52.8 55.5 123 123 5.8 5.5 (SIP contribution in ₹ bn) (SIP AUM in ₹ tn) 92 4.8 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 No. of SIP Accounts (mm) ____________________ Source: AMFI 7
Slide 8: HDFC AMC
HDFC AMC
Slide 9: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY -0.4% YoY -5% 4,169 4,321 4,153 4,187 4,076 3,966 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2021 Mar-2022 Jun-2022 Jun-2021 Mar-2022 Jun-2022 HDFC
Slide 10: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY -1% YoY -6% 4,133 4,275 4,105 4,150 4,028 3,916 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2021 Mar-2022 June-2022 Jun-2021 Mar-2022 June-
Slide 11: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 14% YoY 6% 1,980 1,968 1,805 1,995 1,914 1,723 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2021 Mar-2022 Jun-2022 Jun-2021
Slide 12: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -19% YoY -23% 1,568 1,441 1,548 1,268 1,309 1,194 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2021 Mar-2022 Jun-2022 Jun-2021 Mar-2022 Jun-2022 HDFC M
Slide 13: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -5% YoY -5% 726 686 691 668 638 550 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2021 Mar-2022 Jun-2022 Jun-2021 Mar-2022 Jun-2022 HDFC MF, HDFC MF,
Slide 14: 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 Jun-2022 Others Jun-2022 Others Others Liquid 3.0% 14.8% 2.9% 15.0% Liquid 16.6% 16.1% Liquid Equity Liquid Equity Equity Equity 14.0% 46.5% 13.1% 48.2% 49.8% 50.9% Debt Debt 30.5% Debt
Slide 15: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 4% YoY 13% 2,474 2,599 2,564 10.07 62.4% 62.1% 9.77 57.9% 8.87 55.1% Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Industry Jun-22 Individual MAAUM (Rs bn) Individual customers prefer
Slide 16: Amongst preferred choice of Individual Investors
Amongst preferred choice of Individual Investors Individual Assets Market Share Jun-21 Mar-22 Jun-22 13.5% 12.7% 12.8% 12.7% 12.5% 13.0% 12.9% 12.6% 12.1% 7.6% 7.9% 7.7% 7.3% 6.6% 6.7% HDFC MF #2 MF #3 MF #4 MF #5 MF #1 MF #2 HDFC MF #4 MF #5 MF #1 MF #2 HDFC MF #4 MF #5 MF MF MF Source: AMFI , base
Slide 17: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 40.0 22% 17% 17% (Unique Investors in million) 35.3 35.0 33.7 30.0 25.0 23.9 20.0 15.0 10.0 5.3 5.8 6.0 5.0 0.0 Jun-21 Mar-22 Jun-22 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Inves
Slide 18: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 3.73 85% 12.8 12.3 76% 11.8 11.5 11.3 10.4 9.8 6.8 1.77 Over 5 Years Over 10 Years 4.9 SIP AUM(2): ₹ 685 bn Strong and stable “Order Book” to provide predictable flows Mar-16 Mar-17
Slide 19: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Jun-2022) Equity-oriented AUM (Jun-2022) HDFC Bank 5.7% HDFC Bank 8.5% Banks 10.4% Direct Banks 13.5% 22.1% Direct 42.1% MFDs 27.4% MFDs National Distributors 41.1% 23.3% National Distributors 20.0% Jun-2021 HDFC Ba
Slide 20: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities #2 Player in B-30 Markets B 30, MF #1, 16.9% 22.0% Others, 39.4% HDFC MF, 11.4% MF #3, 11.1% MF #5, MF #4, T 30, 7.9% 8.3% 83.1% We serve customers across ~99% of all pincodes in India Network of 228 branches with 150 in B-30 cities(2) 80k+ empanel
Slide 21: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 18% 24% 20% 31% Digitization Across Functions 82% 76% 80% 69% FY 19-20 FY 20-21 FY 21-22 Q1 FY23 Electronic Physical Strong online presence - dedicated separate digital plat
Slide 22: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced Switch User service on Investor SIP Strengthening – Improved User Journey Drop Management Mobile app to allow multiple users transaction options, Doubling conversion rate on the same app retention, renewals Multiple options for MFDs to initiate Enabled transactions for
Slide 23: Some of our recent marketing initiatives
Some of our recent marketing initiatives Weekend Tuesday’s Passive Bytes Chartscope Talking Points Factsheet Product Presentations Monthly Distributor Product Literature Musings Hand Book 23
Slide 24: Embedding ESG Principles
Embedding ESG Principles Inclusive Health & Environment Growth Safety Grow sustainably Human to benefit all stakeholders Rights Diversity Ethics, Well Being of Transparency Stakeholders & Employees Accountability 24
Slide 25: Caring about Environment
Caring about Environment 80% E-waste transactions are processed in an supported by integrated environment friendly online platform manner Ongoing rejuvenation of pond, urban foresting LEED Gold using Miyawaki technique, certified head office biodiversity park and a (since 2014) butterfly park over a
Slide 26: Inclusive Growth
Inclusive Growth 450+ 10,000+ Investor Awareness women expressing Programmes for women interest for taking their #BarniSeAzadi launched first step towards on 75th Independence financial liberation Day HDFC Mutual Fund 1,100+ collaborates with Cancer patients provided NSE Academy to with financial ai
Slide 27: Robust Governance practices
Robust Governance practices 50% ISO Certified of Board of Directors are information security process independent and controls Diverse backgrounds of individual directors play a 6 Ethics workshops significant role to guide our for employees in partnership business strategy from a with CFA Institute v
Slide 28: HDFC AMC Pillars
HDFC AMC Pillars Purpose (Mission) Passion (Vision) Pedigree To be the wealth creator A highly trusted brand To be the most respected for every Indian with long term orientation asset manager in the world People Platforms Known for setting Wide physical network & Industry benchmarks & State-of-the-a
Slide 29: Financials
ASSET MANAGEMENT COMPANY LIMITED
Slide 30: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (` mm) Particulars Q1 FY23 Q1 FY22 Change Income Revenue from Operations 5,216 5,071 3% Other Income 113 1,009 -89% Total Income 5,329 6,080 -12% Expenses Finance Costs 25 22 14% Fees and Commission Expenses 14 13 8% Employee Benefit Expenses # 780 835 -7% Dep
Slide 31: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (` mm) Particulars Q1 FY23 Q4 FY22 Change Income Revenue from Operations 5,216 5,163 1% Other Income 113 646 -83% Total Income 5,329 5,809 -8% Expenses Finance Costs 25 20 25% Fees and Commission Expenses 14 15 -7% Employee Benefit Expenses # 780 71
Slide 32: Notes
NOTES 1. The Nomination and Remuneration Committee (NRC) 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
Slide 33: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 54 48 48 50 13 12 13 14 41 36 35 36 YE FY20 YE FY21 YE FY22 3M FY23 ____________________ Based on internal computations
Slide 34: Statement of Assets and Liabilities
Statement of Assets and Liabilities (` mm) As at June As at March Particulars 30, 2022 31, 2022 Assets Financial Assets 51,441 56,840 Non Financial Assets 2,177 1,964 Total Assets 53,618 58,804 Liabilities And Equity Liabilities Financial Liabilities 2,007 2,188 Non-Financial Liabilities 2,016 1,315
Slide 35: Breakup of Investments
Breakup of Investments Total Investments: ₹ 50,358 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 5.9% Arbitrage, 15.0% Debentures & Tax Free Bonds, 9.3% Mutual Funds, 87.3% Other Equity, AIFs, Liquid and Debt, 79.1% etc, 3.4% Mutual Funds Other Equity, AIFs, etc
Slide 36: Return On Equity and Dividend Per Share
Return On Equity and Dividend Per Share Return on Equity(1) FY 18 FY 19 FY 20 FY 21 FY 22 40.3% 35.0% 35.6% 30.1% 27.0% Return on Equity for FY18 was reported under Previous GAAP. FY19 onwards, it is reported under Ind AS Dividend Per Share (₹) (2) and Dividend Payout Ratio (3) 56% 66% 47% 55% 64% 3
Slide 37: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 37
Slide 38: 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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