Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q2 FY24 Earnings Presentation
43 slides from Hdfc Asset Management's earnings presentation, Oct 12, 2023
Slide 1: Exchange cover letter: Outcome of Board Meeting
Ref/No/HDFCAMC/SE/2023-24/69 Date – October 12, 2023 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: Sr. General Ma
Slide 2: HDFC Asset Management Company Limited Q2 FY23-24
HDFC Asset Management Company Limited Q2 FY23-24 (For the quarter ended September 30, 2023) 1
Slide 3: HDFC AMC at a glance
HDFC AMC at a glance ₹ 5,247 bn ₹ 5,229 bn QAAUM1 Closing AUM1 ₹ 3,542 bn ₹ 17 bn Individual PMS & SMA ₹ 3,022 bn ₹ 3,169 bn MAAUM2 AUM3 equity oriented equity oriented AUM ₹ 2,861 bn ₹ 1,369 bn ₹ 686 bn Actively Managed Equity-oriented - QAAUM1 Debt - QAAUM1 Liquid - QAAUM1 12.4% 13.3% 11.8% market
Slide 4: Industry
Industry
Slide 5: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 48% 49% 51% 50% 51% 53% 47.0 44.4 46.6 43.1 7.2 7.1 38.4 6.7 39.1 6.4 4.6 5.8 5.8 5.7 5.1 5.7 4.9 5.6 10.1 10.0 QAAUM (₹ trn) 10.3 AUM (₹ trn) 9.8 8.5 8.8 23.8 22.7 24.8 18.9 21.2 19.3 Sep-22 Jun-23 Sep-23 Sep-22 Jun-23 Sep-23 Se
Slide 6: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 57% 57% 58% 17% 17% 17% 153.3 46.9 46.9 148.2 44.8 44.8 137.3 39.9 8.1 39.9 7.6 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 19.8 6.7 19.2 17.1 37.2 38.8 33.1 22.7 25.7 27.1 Sep-22 Ju
Slide 7: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual MAAUM by Asset class Equity MAAUM by Investor category Equity MAAUM by Location 78% 78% 79% 91% 91% 91% 27% 27% 27% 27.1 23.6 23.6 25.7 22.1 22.1 2.2 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 22.7 5.7 2.1 19.5 6.4 19.5 5.7 5.9 5.1
Slide 8: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 58.4 66.5 71.3 160 147 8.7 130 (SIP contribution in ₹ bn) 7.9 (SIP AUM in ₹ tn) 6.4 Sep-22 Jun-23 Sep-23 Sep-22 Jun-23 Sep-23 No. of SIP Accounts (mm) ____________________ Source: AMFI 7
Slide 9: HDFC AMC
HDFC AMC
Slide 10: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 22% YoY 24% 4,857 5,247 5,229 4,293 4,993 4,222 Sep-22 Jun-23 Sep-23 Sep-22 Jun-23 Sep-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2022 June-2023 Sep-2023 Sep-2022 Jun-2023 Sep-2023 HDFC M
Slide 11: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 21% YoY 23% 4,766 5,150 5,132 4,241 4,899 4,169 Sep-22 Jun-23 Sep-23 Sep-22 Jun-23 Sep-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2022 June-2023 Sep-2023 Sep-2022 Jun-2023 Sep-2
Slide 12: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 35% YoY 40% 2,861 3,002 2,488 2,679 2,113 2,148 Sep-22 Jun-23 Sep-23 Sep-22 Jun-23 Sep-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2022 Jun-2023 Sep-2023 Sep-202
Slide 13: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 14% YoY 15% 1,296 1,369 1,323 1,338 1,200 1,167 Sep-22 Jun-23 Sep-23 Sep-22 Jun-23 Sep-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2022 Jun-2023 Sep-2023 Sep-2022 Jun-2023 Sep-2023 HDFC MF,
Slide 14: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -7% YoY -18% 741 774 686 681 689 557 Sep-22 Jun-23 Sep-23 Sep-22 Jun-23 Sep-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Sep-2022 Jun-2023 Sep-2023 Sep-2022 Jun-2023 Sep-2023 HDFC MF, HDFC MF,
Slide 15: 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-2023 Others Others Sep-2023 Others Liquid 3.2% 15.1% Liquid 3.2% 15.4% 13.1% 10.6% Liquid Liquid Equity Equity Debt 12.3% Debt 9.9% Equity 50.6% 53.1% 26.1% 25.6% Equity 57.6% Debt 6
Slide 16: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 31% YoY 24% 2,858 3,328 3,542 67.5% 65.5% 65.0% 13.47 12.05 57.8% 10.31 Sep-22 Jun-23 Sep-23 Sep-22 Jun-23 Aug-23 Industry Aug-23 Individual MAAUM (Rs bn) Individual customers pre
Slide 17: Amongst preferred choice of Individual Investors
Amongst preferred choice of Individual Investors Individual Assets Market Share Sep-22 Jun-23 Aug-23 13.0% 12.6% 12.5% 13.1% 13.0% 13.0% 13.1% 13.0% 13.0% 7.6% 7.4% 6.8% 7.2% 6.8% 6.8% MF #1 HDFC 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 18: Unique Investors - HDFC AMC vs MF Industry
Unique Investors Unique Investors- HDFC AMC vs MF Industry 45.0 17% 18% 20% (Unique Investors in million) 40.4 40.0 38.3 36.0 35.0 30.0 25.0 20.0 15.0 10.0 7.1 7.9 6.1 5.0 0.0 Sep-22 Jun-23 Sep-23 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique
Slide 19: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions(1) (₹ bn) 5.86 Long Tenure SIP Book(2) 22.4 86% 78% 17.1 14.3 12.3 11.5 11.8 11.3 1.77 10.4 Over 5 Years Over 10 Years 6.8 SIP AUM(3): ₹ 1,111 bn 4.9 Strong and stable “Order Book” to provide predictable flows Ma
Slide 20: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Sep-2023) Equity-oriented AUM (Sep-2023) HDFC Bank 5.9% HDFC Bank 7.8% Banks 10.8% Direct Banks 13.1% Direct 23.8% 39.6% MFDs 29.0% MFDs 38.6% National Distributors National Distributors 24.6% 20.6% Jun-2023 HDFC Ba
Slide 21: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities #2 Player in B-30 Markets MF #1, B 30, 21.2% 18.2% Others, 39.8% HDFC MF, 11.8% MF #3, 11.3% MF #5, MF #4, 7.3% 8.6% T 30, 81.8% We serve customers across ~99% of all pincodes in India Network of 229 branches with 151 in B-30 cities(2) 80k+ empanel
Slide 22: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 18% 19% 11% 31% 24% Digitization Across Functions 89% 82% 76% 81% 69% FY 19-20 FY 20-21 FY 21-22 FY 22-23 Q2 FY24 Electronic Physical Strong online presence - dedicated sepa
Slide 23: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced Website Refresh App Refresh Investment Basked ,Goal Planning & Know Your Investment Personality Introduced New User Journey Switch Transaction enabled on Modify SIP on Partner Portal One Click MFD One Customer View Cross sell / up sell campaigns based on Dream SIP (Cam
Slide 24: Some of our recent initiatives
Some of our recent initiatives Father’s Day Mother’s Day NFO ZindagiKeLiyeSIP #NurtureNature Weekend Bytes Nukkad Natak- BarniSeAzadi 23
Slide 25: Embedding ESG Principles
Embedding ESG Principles Inclusive Health & Environment Growth Safety ESG Mission To create sustainable wealth for Human every stakeholder by focusing on Diversity Rights People, Planet and Prosperity Ethics, Well Being of Transparency Stakeholders & Employees Accountability Adopted CFA Institute’s
Slide 26: ESG Highlights
ESG Highlights 'ESG & CSR' committee 29% of Executive management & of the Board to drive ESG framework 29% of Work force are women 63% 17,200+ 4 Ethics workshops of Board of Directors are Employee training conducted for independent man-hours* employees* 1400+ 6,600+ 700+ Cancer patients provided wit
Slide 27: 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 28: Financials
ASSET MANAGEMENT COMPANY LIMITED
Slide 29: Financials Summary – Half Yearly Earnings
Financials Summary – Half Yearly Earnings (` mm) Particulars HYE FY24 HYE FY23 Change Income Revenue from Operations 12,176 10,663 14% Other Income 2,802 1,155 143% Total Income 14,978 11,818 27% Expenses Finance Costs 46 49 -6% Fees and Commission Expenses 14 25 -44% Employee Benefit Expenses # 1,7
Slide 30: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (` mm) Particulars Q2 FY24 Q2 FY23 Change Income Revenue from Operations 6,431 5,447 18% Other Income 1,222 1,042 17% Total Income 7,653 6,489 18% Expenses Finance Costs 23 24 -4% Fees and Commission Expenses 4 11 -64% Employee Benefit Expenses # 929 838 11% D
Slide 31: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (` mm) Particulars Q2 FY24 Q1 FY24 Change Income Revenue from Operations 6,431 5,745 12% Other Income 1,222 1,580 -23% Total Income 7,653 7,325 4% Expenses Finance Costs 23 23 0% Fees and Commission Expenses 4 10 -60% Employee Benefit Expenses # 929
Slide 32: NOTES
NOTES 1. Under Employees Stock Option Scheme - 2020 ('ESOS - 2020'), apart from stock options granted in the past year(s), the Nomination and Remuneration Committee (NRC) of the Board of Directors of the Company at its meeting held on April 25, 2023 had approved a further grant of 1,050,000 stock op
Slide 33: NOTES
NOTES 3. HDFC Bank Limited (‘HDFC Bank’) is Holding Company and Promoter of HDFC Asset Management Company Limited effective July 01, 2023 pursuant to the Composite scheme of amalgamation of: (i) HDFC Investments Limited and HDFC Holdings Limited, wholly owned subsidiaries of Housing Development Fina
Slide 34: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 48 48 49 48 12 13 14 13 36 35 35 35 YE FY21 YE FY22 YE FY23 HYE FY24 Operating margin (bps of AAUM) for Q1 FY 24 and Q2 FY 24 are 34 and 35 respectively ____________________ Based on internal computations 33
Slide 35: Statement of Assets and Liabilities
Statement of Assets and Liabilities (` m m ) As at Sep 30, As at Mar 31, Particulars 2023 2023 Assets Financial As s ets 62,256 63,108 Non Financial As s ets 2,044 2,258 Total Assets 64,300 65,366 Liabilities And Equity Liabilities Financial Liabilities 2,080 2,419 Non-Financial Liabilities 1,968 1,
Slide 36: Breakup of Investments
Breakup of Investments Total Investments: ₹ 59,599 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 7.4% Arbitrage, 2.4% Subsidiary, 0.7% Debentures & Tax Free Bonds, 7.1% Mutual Funds, Other Equity, AIFs, 89.2% Liquid and Debt, 90.2% etc, 3.0% Mutual Funds Other E
Slide 37: Return On Equity and Dividend Per Share
Return On Equity and Dividend Per Share Return on Equity(1) FY 19 FY 20 FY 21 FY 22 FY 23 35.0% 35.6% 30.1% 27.0% 24.5% Dividend Per Share (₹) (2) and Dividend Payout Ratio (3) 66% 47% 55% 64% 72% 42 48 24 28 34 FY19 FY20 FY21 FY22 FY23 Dividend per share Payout ratio ____________________ (1) Calcul
Slide 38: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED
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
Slide 40: HDFC AMC net profit for the Quarter ended September 30, 2023 at ₹4,376 million
ss Press Release October 12, 2023 HDFC AMC net profit for the Quarter ended September 30, 2023 at ₹4,376 million, an increase of 20% over Quarter ended September 30, 2022. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period ended September 30, 2023. • Amongst I
Slide 41: Corporate Highlights
Mumbai- October 12, 2023: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended September 30, 2023. CORPORATE HIGHLIGHTS • QAAUM of ₹5,247 billion for the quarter ended September 30, 2023 compared to ₹4,293 billion for the quarter ended September 30, 20
Slide 42: Financial Highlights for the Quarter Ended September 30, 2023
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED SEPTEMBER 30, 2023 • The Operating Profit for the quarter ended September 30, 2023 was ₹4,670 million as compared to ₹3,889 million for the quarter ended September 30, 2022. • Profit before tax for the quarter ended September 30, 2023 was ₹5,892 million as
Slide 43: About HDFC AMC
About HDFC AMC Incorporated in 1999, HDFC Asset Management Company Limited (HDFC AMC) is Investment Manager to HDFC Mutual Fund, one of the largest mutual funds in the country with closing AUM of Rs 5.2 trillion as on September 30, 2023. The Company offers a comprehensive suite of savings and invest
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