Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q1 FY24 Earnings Presentation
42 slides from Hdfc Asset Management's earnings presentation, Jul 24, 2023
Slide 1: Exchange cover letter: Outcome of Board Meeting
Ref/No/HDFCAMC/SE/2023-24/47 Date – July 24, 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 Manag
Slide 2: HDFC Asset Management Company Limited Q1 FY23-24
HDFC Asset Management Company Limited Q1 FY23-24 (For the quarter ended June 30, 2023) 1
Slide 3: HDFC AMC at a glance
HDFC AMC at a glance ₹ 4,857 bn ₹ 4,993 bn QAAUM1 Closing AUM1 ₹ 3,328 bn ₹ 20 bn Individual PMS & SMA ₹ 2,632 bn ₹ 2,833 bn MAAUM1 AUM2 equity oriented equity oriented AUM ₹ 2,488 bn ₹ 1,296 bn ₹ 774 bn Actively Managed Equity-oriented - QAAUM1 Debt - QAAUM1 Liquid - QAAUM1 12.1% 13.2% 13.7% market
Slide 4: Industry
Industry
Slide 5: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 46% 49% 49% 48% 51% 51% 44.4 43.1 39.4 6.7 40.5 35.6 37.7 6.4 6.0 5.1 6.2 5.3 5.6 5.7 4.3 5.6 4.7 10.0 5.3 QAAUM (₹ trn) 9.8 9.2 AUM (₹ trn) 9.3 8.8 8.5 20.0 22.7 19.9 21.2 17.2 17.5 Jun-22 Mar-23 Jun-23 Jun-22 Mar-23 Jun-23 Jun-
Slide 6: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 55% 58% 57% 17% 17% 17% 148.2 44.8 44.8 144.9 40.0 40.0 7.6 133.9 37.0 37.0 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 6.8 19.2 6.1 16.8 16.6 37.2 33.2 30.9 25.7 20.4 23.3 Jun-22 Ma
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 76% 77% 78% 90% 90% 91% 27% 27% 27% 25.7 22.1 23.3 22.1 5.7 19.8 2.1 19.8 20.4 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 5.4 5.9 17.1 1.9 17.1 5.0 5.3
Slide 8: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 55.5 63.6 66.5 143 147 7.9 123 (SIP contribution in ₹ bn) 6.8 (SIP AUM in ₹ tn) 5.5 Jun-22 Mar-23 Jun-23 Jun-22 Mar-23 Jun-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 17% YoY 26% 4,498 4,857 4,153 4,993 3,966 4,367 Jun-22 Mar-23 Jun-23 Jun-22 Mar-23 Jun-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2022 Mar-2023 Jun-2023 Jun-2022 Mar-2023 Jun-2023 HDFC MF
Slide 11: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 16% YoY 25% 4,422 4,766 4,105 4,899 3,916 4,283 Jun-22 Mar-23 Jun-23 Jun-22 Mar-23 Jun-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2022 Mar-2023 Jun-2023 Jun-2022 Mar-2023 Jun-20
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 26% YoY 40% 2,488 2,679 2,317 2,322 1,968 1,914 Jun-22 Mar-23 Jun-23 Jun-22 Mar-23 Jun-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2022 Mar-2023 Jun-2023 Jun-202
Slide 13: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 2% YoY 11% 1,194 1,226 1,323 1,268 1,179 1,296 Jun-22 Mar-23 Jun-23 Jun-22 Mar-23 Jun-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2022 Mar-2023 Jun-2023 Jun-2022 Mar-2023 Jun-2023 HDFC MF,
Slide 14: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 12% YoY 8% 730 774 691 638 689 548 Jun-22 Mar-23 Jun-23 Jun-22 Mar-23 Jun-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2022 Mar-2023 Jun-2023 Jun-2022 Mar-2023 Jun-2023 HDFC MF, HDFC MF, H
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 Jun-2023 Others Others Jun-2023 Others Liquid 3.2% 14.9% Liquid 3.0% 15.0% 15.9% 13.8% Liquid Equity Liquid Equity Equity 13.1% 49.2% 11.5% Debt Debt Equity 51.1% 54.2% 56.7% 26.7% Debt
Slide 16: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 30% YoY 20% 2,564 2,992 3,328 67.2% 65.0% 12.05 62.1% 11.27 57.3% 10.07 Jun-22 Mar-23 Jun-23 Jun-22 Mar-23 Jun-23 Industry Jun-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 Jun-22 Mar-23 Jun-23 13.0% 12.9% 12.6% 13.1% 13.0% 13.0% 13.0% 13.0% 12.9% 7.7% 6.7% 7.0% 6.9% 7.2% 6.8% MF #1 MF #2 HDFC 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 18: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 45.0 17% 18% 18% (Unique Investors in million) 40.0 37.7 38.3 35.3 35.0 30.0 25.0 20.0 15.0 10.0 6.0 6.6 7.1 5.0 0.0 Jun-22 Mar-23 Jun-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) 5.03 Long Tenure SIP Book(2) 18.9 86% 17.1 77% 12.8 12.3 11.5 11.8 11.3 10.4 1.77 Over 5 Years Over 10 Years 6.8 SIP AUM(3): ₹ 1,002 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 (Jun-2023) Equity-oriented AUM (Jun-2023) HDFC Bank 5.8% HDFC Bank 8.0% Banks 10.4% Direct Banks 13.1% Direct 22.7% 41.7% MFDs 28.2% MFDs 39.8% National Distributors 24.4% National Distributors 19.7% Mar-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, 21.4% 17.2% Others, 40.0% HDFC MF, 11.6% MF #3, 11.2% MF #5, MF #4, 7.5% 8.3% T 30, 82.8% We serve customers across ~99% of all pincodes in India Network of 229 branches with 151 in B-30 cities(2) 75k+ empanel
Slide 22: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 18% 19% 12% 31% 24% Digitization Across Functions 88% 82% 76% 81% 69% FY 19-20 FY 20-21 FY 21-22 FY 22-23 Q1 FY24 Electronic Physical Strong online presence - dedicated sepa
Slide 23: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced Website Refresh App Refresh Investment Basket and Goal Planning Multiple options for MFDs to initiate Enabled transactions for One Click solution for MFDs bulk transactions in one go Non-individual Investors of MFDs One Customer View Cross sell / up sell campaigns base
Slide 24: Some of our recent initiatives
Some of our recent initiatives Father’s Day Mother’s Day NFO #NurtureNature ZindagiKeLiyeSIP Weekend Bytes 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 27% 9,000+ 'ESG & CSR' committee 63% of Executive management & Employee training man-hours of the Board of Board of Directors 28% 2 Ethics workshops to drive ESG framework are independent of Work force are women for employees 6,000+ NurtureNature 3.0 650+ Children given access to Camp
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 – Quarterly Earnings
Financials Summary – Quarterly Earnings (` mm) Particulars Q1 FY24 Q1 FY23 Change Income Revenue from Operations 5,745 5,216 10% Other Income 1,580 113 1298% Total Income 7,325 5,329 37% Expenses Finance Costs 23 25 -8% Fees and Commission Expenses 10 14 -29% Employee Benefit Expenses # 838 780 7% D
Slide 30: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (` mm) Particulars Q1 FY24 Q4 FY23 Change Income Revenue from Operations 5,745 5,409 6% Other Income 1,580 969 63% Total Income 7,325 6,378 15% Expenses Finance Costs 23 24 -4% Fees and Commission Expenses 10 6 67% Employee Benefit Expenses # 838 71
Slide 31: 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 32: Notes
NOTES 3. 'HDFC Bank Limited (‘HDFC Bank’) has become the Holding Company and Promoter of HDFC Asset Management Company Limited, in place of Housing Development Finance Corporation Limited (‘HDFC Ltd’), with effect from July 01, 2023, pursuant to the Composite scheme of amalgamation of :(i) HDFC Inve
Slide 33: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 48 48 49 47 12 13 14 13 36 35 35 34 YE FY21 YE FY22 YE FY23 3M FY24 ____________________ Based on internal computations 32
Slide 34: Statement of Assets and Liabilities
Statement of Assets and Liabilities (` m m ) As at Jun 30, As at Mar 31, Particulars 2023 2023 Assets Financial As s ets 58,216 63,108 Non Financial As s ets 2,129 2,258 Total Assets 60,345 65,366 Liabilities And Equity Liabilities Financial Liabilities 1,939 2,419 Non-Financial Liabilities 2,678 1,
Slide 35: Breakup of Investments
Breakup of Investments Total Investments: ₹ 55,841 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 7.3% Arbitrage, 2.5% Subsidiary, 0.3% Debentures & Tax Free Bonds, 7.6% Mutual Funds, Other Equity, AIFs, 88.8% Liquid and Debt, 90.2% etc, 3.3% Mutual Funds Other E
Slide 36: 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 37: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You [sHDFC ASSET MANAGEMENT COMPANY LIMITED
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
Slide 39: HDFC AMC operating profit for the Quarter ended June 30, 2023 at ₹4,133 million
ss Press Release July 24, 2023 HDFC AMC operating profit for the Quarter ended June 30, 2023 at ₹4,133 million, an increase of 11% over Quarter ended June 30, 2022. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period ended June 30, 2023. • Amongst India’s large
Slide 40: Corporate Highlights
Mumbai, 24 July, 2023: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended June 30, 2023. CORPORATE HIGHLIGHTS • QAAUM of ₹4,857 billion for the quarter ended June 30, 2023 compared to ₹4,153 billion for the quarter ended June 30, 2022, 11.3% market s
Slide 41: Financial Highlights for the Quarter Ended June 30, 2023
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2023 • The Operating Profit for the quarter ended June 30, 2023 was ₹4,133 million as compared to ₹3,737 million for the quarter ended June 30, 2022. • Profit before tax for the quarter ended June 30, 2023 was ₹5,713 million as compared to ₹3,850 m
Slide 42: 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 trillion as on June 30, 2023. The Company offers a comprehensive suite of savings and investment pr
HDFC Asset Management Company — Q1 FY24 Earnings Presentation on 6ix