Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q2 FY23 Earnings Presentation
44 slides from Hdfc Asset Management's earnings presentation, Oct 19, 2022
Slide 1: Outcome of Board Meeting cover letter
-i HDFC MUTUAL FUND BHAROSA APNO KA Ref!No/HDFCAMC/ SE/2022-23/55 Date - October 19, 2022 Nationa l Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C/ 1, Block G, Sir PJ Towers, Sandra Kurla Complex, Bandra (East) Dalal Street, Mumba i - 40005 1 M umbai - 400001 Kind Attn: Head - Li
Slide 2: Press Release: HDFC AMC net profit for quarter ended September 30, 2022
Press Release 19 October, 2022 HDFC AMC net profit for the quarter ended September 30, 2022 at ₹3,641 million, an increase of 6% over quarter ended September 30, 2021. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period ended September 30, 2022. • Amongst India
Slide 3: Corporate Highlights
Mumbai, 19 October, 2022: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended September 30, 2022. CORPORATE HIGHLIGHTS • QAAUM of ₹4,293 billion for the quarter ended September 30, 2022 compared to ₹4,389 billion for the quarter ended September 30, 20
Slide 4: Financial Highlights for the Quarter and Half Year
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED SEPTEMBER 30, 2022 • The Operating Profit for the quarter ended September 30, 2022 was ₹3,889 million as compared to ₹3,954 million for the quarter ended September 30, 2021. • Profit before tax for the quarter ended September 30, 2022 was up by 7% to ₹4,931
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 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
Slide 6: HDFC Asset Management Company Limited Q2 FY22-23
HDFC Asset Management Company Limited Q2 FY22-23 (For the quarter ended September 30, 2022) 1
Slide 7: HDFC AMC at a glance
HDFC AMC at a glance ₹ 4,293 bn ₹ 4,222 bn QAAUM1 Closing AUM1 ₹ 2,858 bn ₹ 27 bn Individual PMS & SMA ₹ 2,227 bn ₹ 2,265 bn MAAUM1 AUM2 equity oriented equity oriented AUM ₹ 2,113 bn ₹ 1,200 bn ₹ 741 bn Actively Managed Equity-oriented - QAAUM1 Debt - QAAUM1 Liquid - QAAUM1 11.5% 13.7% 13.2% market
Slide 8: Industry
Industry
Slide 9: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 43% 46% 48% 46% 48% 50% 38.4 37.7 39.1 36.7 35.6 36.2 5.7 5.8 5.1 4.9 5.6 5.3 4.2 4.9 4.7 5.3 5.6 4.7 8.5 QAAUM (₹ trn) 8.8 10.7 AUM (₹ trn) 11.0 9.3 8.5 17.5 18.9 16.8 17.2 19.3 15.6 Sep-21 Jun-22 Sep-22 Sep-21 Jun-22 Sep-22 Sep
Slide 10: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 55% 55% 57% 16% 17% 17% 39.9 137.3 39.9 37.4 37.0 133.9 37.4 37.0 6.7 6.2 6.1 111.0 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 17.1 17.0 16.6 33.1 31.2 30.9 20.4 22.7 20.4 Sep-21 Ju
Slide 11: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual MAAUM by Asset class Equity MAAUM by Investor category Equity MAAUM by Location 73% 76% 78% 91% 90% 91% 27% 27% 27% 22.7 19.5 19.5 20.4 20.4 17.1 5.1 1.8 16.5 17.1 5.2 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 16.5 5.5 5.0 1.6 1.5
Slide 12: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 44.9 55.5 58.4 130 123 (SIP contribution in ₹ bn) 6.4 104 5.4 5.5 (SIP AUM in ₹ tn) Sep-21 Jun-22 Sep-22 Sep-21 Jun-22 Sep-22 No. of SIP Accounts (mm) ____________________ Source: AMFI 7
Slide 13: HDFC AMC
HDFC AMC
Slide 14: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY -2% YoY -3% 4,389 4,153 4,293 4,357 4,222 3,966 Sep-21 Jun-22 Sep-22 Sep-21 Jun-22 Sep-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2021 Jun-2022 Sep-2022 Sep-2021 Jun-2022 Sep-2022 HDFC MF
Slide 15: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY -2% YoY -3% 4,350 4,105 4,241 4,316 4,169 3,916 Sep-21 Jun-22 Sep-22 Sep-21 Jun-22 Sep-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2021 Jun-2022 Sep-2022 Sep-2021 Jun-2022 Sep-20
Slide 16: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 13% YoY 11% 1,968 2,113 1,944 2,148 1,877 1,914 Sep-21 Jun-22 Sep-22 Sep-21 Jun-22 Sep-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2021 Jun-2022 Sep-2022 Sep-202
Slide 17: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -25% YoY -27% 1,610 1,588 1,268 1,200 1,194 1,167 Sep-21 Jun-22 Sep-22 Sep-21 Jun-22 Sep-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2021 Jun-2022 Sep-2022 Sep-2021 Jun-2022 Sep-2022 HDFC M
Slide 18: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 3% YoY 7% 721 691 741 681 634 638 Sep-21 Jun-22 Sep-22 Sep-21 Jun-22 Sep-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2021 Jun-2022 Sep-2022 Sep-2021 Jun-2022 Sep-2022 HDFC MF, HDFC MF, HD
Slide 19: 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-2022 Others Sep-2022 Others Others Liquid 2.9% 14.9% Liquid 2.6% 14.9% 17.3% 16.1% Liquid Equity Liquid Equity Equity Equity 12.8% 14.3% 48.3% 50.3% Debt 51.9% 53.6% Debt 28.0% Debt
Slide 20: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 10% YoY 13% 2,603 2,564 2,858 10.07 10.31 65.5% 9.09 62.1% 58.8% 57.0% Sep-21 Jun-22 Sep-22 Sep-21 Jun-22 Sep-22 Industry Sep-22 Individual MAAUM (Rs bn) Individual customers pref
Slide 21: Amongst preferred choice of Individual Investors
Amongst preferred choice of Individual Investors Individual Assets Market Share Sep-21 Jun-22 Sep-22 12.8% 12.7% 12.3% 13.0% 12.6% 12.5% 13.0% 12.9% 12.6% 7.9% 7.6% 7.0% 7.7% 6.8% 6.7% HDFC MF #2 MF #3 MF #4 MF #5 MF #1 MF #2 HDFC MF #4 MF #5 MF #1 HDFC MF #3 MF #4 MF #5 MF MF MF Source: AMFI , base
Slide 22: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 40.0 20% 17% 17% (Unique Investors in million) 35.3 36.0 35.0 30.0 26.7 25.0 20.0 15.0 10.0 5.4 6.0 6.1 5.0 0.0 Sep-21 Jun-22 Sep-22 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Inves
Slide 23: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions(1) (₹ bn) Long Tenure SIP Book(2) 3.91 86% 14.3 76% 12.8 12.3 11.5 11.8 11.3 10.8 10.4 1.77 6.8 Over 5 Years Over 10 Years 4.9 SIP AUM(3): ₹ 786 bn Strong and stable “Order Book” to provide predictable flows Mar-
Slide 24: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Sep-2022) Equity-oriented AUM (Sep-2022) HDFC Bank 5.8% HDFC Bank 8.3% Banks 10.6% Direct Banks 13.4% Direct 22.1% 41.0% MFDs 28.2% MFDs 41.1% National Distributors 23.5% National Distributors 20.2% Sep-2021 HDFC Ba
Slide 25: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities #2 Player in B-30 Markets B 30, MF #1, 17.5% 22.0% Others, 39.9% HDFC MF, 11.4% MF #3, 10.8% MF #5, MF #4, T 30, 7.9% 8.1% 82.5% We serve customers across ~99% of all pincodes in India Network of 228 branches with 150 in B-30 cities(2) 80k+ empanel
Slide 26: 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 Q2 FY23 Electronic Physical Strong online presence - dedicated separate digital plat
Slide 27: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced Facial Recognition SIP Strengthening – Improved User Journey Drop Management transaction options, Doubling conversion rate retention, renewals Multiple options for MFDs to initiate Enabled transactions for One Click solution for MFDs bulk transactions in one go Non-ind
Slide 28: Some of our recent marketing initiatives
Some of our recent marketing initiatives Investor education initiatives Few product highlights NFO 23
Slide 29: 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 30: Caring about Environment
Caring about Environment 80% E-waste transactions are processed in an supported by integrated environment friendly online platform manner Biodiversity Park development across LEED Gold 59,000 sq. ft. located at certified head office the University of Mumbai’s (since 2014) Kalina Campus under our CSR
Slide 31: Inclusive Growth
Inclusive Growth Financial Literacy Health and well being 490+ 1,870+ 6,500+ Investor Awareness Cancer patients Cancer Patients & care Programmes for women provided with givers availed the #BarniSeAzadi launched on financial aid* transport service* 75th Independence Day Customer Centricity 10,000+ w
Slide 32: Robust Governance practices
Robust Governance practices W.E. Global Employees' 50% Choice Award 2022 of Board of Directors are Best Company Best CEO independent Best CHRO In Large Size Category Diverse backgrounds of ISO Certified individual directors play a information security process significant role to guide our and contro
Slide 33: 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 34: Financials
ASSET MANAGEMENT COMPANY LIMITED
Slide 35: Financials Summary – Half Yearly Earnings
Financials Summary – Half Yearly Earnings (` mm) Particulars HYE FY23 HYE FY22 Change Income Revenue from Operations 10,663 10,494 2% Other Income 1,155 1,670 -31% Total Income 11,818 12,164 -3% Expenses Finance Costs 49 44 11% Fees and Commission Expenses 25 26 -4% Employee Benefit Expenses # 1,618
Slide 36: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (` mm) Particulars Q2 FY23 Q2 FY22 Change Income Revenue from Operations 5,447 5,423 0% Other Income 1,042 661 58% Total Income 6,489 6,084 7% Expenses Finance Costs 24 22 9% Fees and Commission Expenses 11 13 -15% Employee Benefit Expenses # 838 798 5% Deprec
Slide 37: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (` mm) Particulars Q2 FY23 Q1 FY23 Change Income Revenue from Operations 5,447 5,216 4% Other Income 1,042 113 822% Total Income 6,489 5,329 22% Expenses Finance Costs 24 25 -4% Fees and Commission Expenses 11 14 -21% Employee Benefit Expenses # 838
Slide 38: Notes
NOTES 1. Under Employees Stock Option Scheme - 2020 ('ESOS - 2020'), apart from stock options granted earlier, the Nomination and Remuneration Committee (NRC) of the Board of Directors of the Company at its meeting held on July 21, 2022 had approved a further grant of 50,000 stock options representi
Slide 39: 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 HYE FY23 Operating margin (bps of AAUM) for Q1 FY 23 and Q2 FY 23 are 36 and 36 respectively ____________________ Based on internal computations 34
Slide 40: Statement of Assets and Liabilities
Statement of Assets and Liabilities (` m m ) As at Sep 30, As at Mar 31, Particulars 2022 2022 Assets Financial As s ets 54,837 56,840 Non Financial As s ets 2,134 1,964 Total Assets 56,971 58,804 Liabilities And Equity Liabilities Financial Liabilities 2,142 2,188 Non-Financial Liabilities 1,467 1,
Slide 41: Breakup of Investments
Breakup of Investments Total Investments: ₹ 52,547 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 6.4% Arbitrage, 14.4% Subsidiary, 0.1% Debentures & Tax Free Bonds, 8.9% Mutual Funds, 87.8% Other Equity, AIFs, etc, 3.2% Liquid and Debt, 79.2% Mutual Funds Other
Slide 42: 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 43: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 38
Slide 44: 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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