Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q4 FY2020 Earnings Presentation
33 slides from Hdfc Asset Management's earnings presentation, May 9, 2020
Slide 1: Outcome of Board Meeting cover letter to exchanges
-t HDFC MUTUAL FUND BHAROSA APNO KA Ref/No/HDFCAMC/SE/2020-21 /08 Date - May 09, 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 Departm
Slide 2: HDFC Asset Management Company Limited Q4 FY19-20
HDFC Asset Management Company Limited Q4 FY19-20 1
Slide 3: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 40% 40% 39% 43% 41% 37% 26.8 27.0 26.5 24.5 2.7 23.8 2.5 2.7 22.3 1.7 1.9 5.4 5.3 4.6 2.1 5.9 4.4 4.1 8.4 QAAUM (₹ trn) 8.3 8.7 7.3 AUM (₹ trn) 7.1 7.8 9.7 10.6 10.4 10.2 10.9 8.3 Mar-19 Dec-19 Mar-20 Mar-19 Dec-19 Mar-20 Mar-19
Slide 4: Individual / Institutional MAAUM, SIP Flows, B30
Individual / Institutional MAAUM, SIP Flows, B30 MAAUM by Investor category(1)(2)(3) SIP Flows(1) MAAUM of B-30(1)(2) 82.1 86.6 89.3 10.1 13.5 21.1 26.2 29.8 31.2 15% 16% 16% (MAAUM in ₹ tn) (SIP contribution in ₹ bn) 23.0 85 86 (MAAUM ₹ trn) 81 20.8 20.9 71 12.7 11.0 (47%) 11.8 (45%) (48%) 43 31 13
Slide 5: HDFC AMC at a glance
HDFC AMC at a glance Quarterly Average AUM Closing AUM Assets Under ₹ 2,105 bn Assets Under ₹ 1,969 bn Equity-Oriented US$ 28 bn Equity-Oriented US$ 26 bn Management(1) Management(1) 43% ₹ 3,698 bn 57% 38% ₹ 3,191 bn 62% Non-Equity Non-Equity ₹ 1,593 bn US$ 49 bn Oriented ₹ 1,222 bn US$ 42 bn Orient
Slide 6: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY -7% YoY 8% 3,825 3,439 3,689 3,423 3,698 3,191 Mar-19 Dec-19 Mar-20 Mar-19 Dec-19 Mar-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2019 Dec-2019 Mar-2020 Mar-2019 Dec-2019 Mar-2020 HDFC MF,
Slide 7: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 2% YoY -27% 1,666 1,574 1,643 1,694 1,539 1,200 Mar-19 Dec-19 Mar-20 Mar-19 Dec-19 Mar-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2019 Dec-2019 Mar-2020 Mar-201
Slide 8: 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 Mar-2020 Others Mar-2020 Others Mar-2020 Others Mar-2020 Others 2.1% 9.8% 1.7% 9.4% Liquid Equity 24.1% Equity Liquid Equity Equity Liquid Liquid 37.1% 38.5% 27.2% 38.3% 43.1% 19.5% 18.6% Debt
Slide 9: Individual Investors – no of Accounts & MAAUM
Individual Investors – no of Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY -11% YoY 3% 2,167 2,274 1,935 63.0% 9.36 9.34 59.5% 9.03 57.2% 52.2% Mar-19 Dec-19 Mar-20 Mar-19 Dec-19 Mar-20 Industry Mar-20 (2) Individual MAAUM (Rs bn)(1) Individual cus
Slide 10: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share (Mar-20) Individual Assets Market Share (Dec-19) Individual Assets Market Share (Mar-19) 15.0% 13.4% 15.5% 15.4% 11.7% 13.6% 13.7% 10.7% 8.3% 9.7% 9.3% 9.2% 7.0% 8.5% 7.6% HDFC ICICI Pru SBI ABSL MF Nippon HDFC ICICI Pru SB
Slide 11: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 25.0 28% 27% 27% (Unique Investors in million) 20.3 20.8 20.0 19.3 15.0 10.0 5.3 5.5 5.6 5.0 0.0 Mar-19 Dec-19 Mar-20 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as identif
Slide 12: Systematic Transactions
Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 3.29 81.0% 12.2 11.8 69.0% 11.5 11.3 6.8 Over 5 Years Over 10 Years 4.7 4.9 1.23 3.1 Strong and stable “Order Book” to provide predictable flows Mar-14 Mar-15 Mar-
Slide 13: Multi-channel Distribution Network
Multi-channel Distribution Network Well Diversified Distribution Channel Total AUM (Mar-20) Equity-oriented AUM (Mar-20) HDFC Bank 5.6% HDFC Bank 9.9% Banks, 10.7% Direct 19.2% Banks, 15.7% Direct 47.8% IFAs 23.4% National Distributors IFAs National Distributors 24.8% 40.3% 18.1% Dec-2019 HDFC Bank
Slide 14: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities(1) #2 Player in B-30 Markets(1) B 30, SBI MF, 13.6% 20.7% Others, 38.4% HDFC MF, 11.9% ICICI Pru MF, 11.2% ABSL, T 30, 8.7% UTI MF, 9.0% 86.4% Network of 221 branches with 145 in B-30 cities(2) c. 70k+ empaneled distribution partners ______________
Slide 15: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 32.8% 30.7% 69.9% Digitization Across Functions 67.2% 69.3% 30.1% FY15 FY19 FY20 Electronic Physical Strong online presence - dedicated separate digital platforms distributi
Slide 16: Managing COVID – Outbreak
Managing COVID – 19 Outbreak Our Response Initiated Maintained Maintained People BCP Workflow Client Servicing 2.13 2.05 1.93 2.38 • Well prior to the government • Initial response was to utilize Successfully operated from home 2.50 initiated lockdown, precautions branches as alternate sites, workin
Slide 17: Financials
[ asa 4iHADFEC
Slide 18: Financials Summary – Year ended Earnings
Financials Summary – Year ended Earnings (₹ mm) Particulars YE FY20 YE FY19 Change Income Revenue from Operations 20,033 19,152 5% Other Income 1,402 1,816 -23% Total Income 21,435 20,968 2% Expenses Finance Costs 90 - - Fees and Commission Expenses 209 2,403 -91% Impairment on Financial Instruments
Slide 19: Profit Before Non recurring Items
Profit Before Non recurring Items (₹ mm) Particulars YE FY20 YE FY19 Change Profit Before Tax (PBT) 16,531 13,747 20% Fair Value loss on Essel group exposure 1,204 - Impairment on Preference Shares - 400 PBT before non recurring items 17,735 14,147 25% Particulars YE FY20 YE FY19 Change Profit After
Slide 20: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (₹ mm) Particulars Q4 FY20 Q4 FY19 Change Income Revenue from Operations 4,762 4,865 -2% Other Income (265) 612 -143% Total Income 4,497 5,477 -18% Expenses Finance Costs 22 - - Fees and Commission Expenses 16 299 -95% Impairment on Financial Instruments - 98
Slide 21: Profit Before Non recurring Items
Profit Before Non recurring Items (₹ mm) Particulars Q4 FY 20 Q4 FY 19 Change Profit Before Tax (PBT) 3,297 4,146 -20% Fair Value loss on Essel group exposure 953 - Impairment on Preference Shares - 98 PBT before non recurring items 4,250 4,244 0.13% Particulars Q4 FY 20 Q4 FY 19 Change Profit After
Slide 22: Notes
NOTES 1. 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 23: Notes
NOTES 2. The Company has elected to exercise the option of a lower tax rate provided under Section 115BAA of the Income-tax Act, 1961, as introduced by the Taxation Laws (Amendment) Ordinance, 2019 dated September 20, 2019. Accordingly, the Company had recognised provision for income tax for the hal
Slide 24: Notes
NOTES 4. In early 2020, the existence of a new coronavirus named SARS-CoV-2 responsible for the disease COVID-19, was confirmed and since then the virus has spread across the globe necessitating the World Health Organization (WHO) to declare it a global pandemic. The pandemic has caused disruption t
Slide 25: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 63 59 54 29 22 13 37 41 34 YE FY18 YE FY19 YE FY20 As per Ind AS ____________________ Based on internal computations 24
Slide 26: Statement of Assets and Liabilities
Statement of Assets and Liabilities (₹ mm) As at March As at March Particulars 31, 2020 31, 2019 Assets Financial Assets 40,662 30,978 Non Financial Assets 2,425 1,260 Total Assets 43,087 32,238 Liabilities And Equity Liabilities Financial Liabilities 2,251 1,130 Non-Financial Liabilities 543 400 Eq
Slide 27: Return On Equity and Dividend Payout Ratio
Return On Equity and Dividend Payout Ratio 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) F
Slide 28: Thank You
ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 27
Slide 29: 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 30: HDFC AMC net profit for the Financial Year ended Mar 2020 at ₹12,625 million
ss Press Release 9 May, 2020 HDFC AMC net profit for the Financial Year ended Mar 2020 at ₹12,625 million, a year on year increase of 36%. Dividend per share increases to Rs 28, as against Rs 24 per share. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period end
Slide 31: Press release: corporate highlights for the quarter ended March 31, 2020
Mumbai, 9 May, 2020: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended March 31, 2020. CORPORATE HIGHLIGHTS • QAAUM of ₹3,698 billion as of March 31, 2020 compared to ₹3,423 billion as on March 31, 2019, a growth of 8%. 13.7% market share in QAAUM o
Slide 32: Financial highlights for the financial year ended March 31, 2020
FINANCIAL HIGHLIGHTS FOR THE FINANCIAL YEAR ENDED MARCH 31, 2020 • The Operating Profit for the financial year ended March 31, 2020 was ₹15,129 million as compared to ₹11,931 million for the financial year ended March, 2019. This is an increase of 27%. • PBT before non-recurring items for the financ
Slide 33: 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
HDFC Asset Management Company — Q4 FY2020 Earnings Presentation on 6ix