Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q1 FY2020 Earnings Presentation
26 slides from Hdfc Asset Management's earnings presentation, Jul 16, 2019
Slide 1: Outcome of Board Meeting cover letter
-- HDFC MUTUAL FUND BHAROSA APNO KA Ref/No/HDFCAMC/SE/2019-20/37 Date-July 16,2019 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 Department
Slide 2: HDFC AMC Q1FY20 net profit at ₹2,917 million, up 42%
ss Press Release 16 July, 2019 HDFC AMC Q1FY20 net profit at ₹2,917 million, a year on year increase of 42%. AUM rises to ₹3,567 billion, a year on year increase of 18%. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period ended June 30, 2019. • India’s largest
Slide 3: Corporate Highlights
Mumbai, 16 July, 2019: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended June 30, 2019. CORPORATE HIGHLIGHTS • Total AUM of ₹3,567 billion as of June 30, 2019 compared to ₹3,011 billion as on June 30, 2018, a growth of 18%. 14.7% market share in tot
Slide 4: Financial Highlights for the Quarter Ended June 30, 2019
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2019 • Operating Profit from core Asset Management business for the quarter ended June 30, 2019 was ₹3,815 million as compared to ₹2,647 million for the quarter ended June 30, 2018. This is an increase of 44%. • Profit before tax for the quarter en
Slide 5: About HDFC AMC
About HDFC AMC HDFC Asset Management Company Limited (HDFC AMC) is Investment Manager to HDFC Mutual Fund, 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 Fund by S
Slide 6: HDFC Asset Management Company Limited Q1 FY19-20
HDFC Asset Management Company Limited Q1 FY19-20 1
Slide 7: Industry - AUM and Net Sales
Industry - AUM and Net Sales 25% 34% 35% 36% 43% 40% 43% 43% 23.8 24.3 22.9 1.9 2.1 21.4 1.5 Mar-14 to June-19 CAGR: 0.8 Overall: 23%; Equity: 38%; Debt:8%; Liquid: 27% 17.5 4.4 4.7 3.4 4.6 0.5 3.1 12.3 7.3 7.0 8.0 7.7 10.8 0.2 AUM (₹ trn) 0.2 2.0 8.3 1.6 7.6 0.2 1.3 5.8 5.3 4.7 9.2 9.1 10.2 10.5 6.
Slide 8: Individual / Institutional MAAUM, SIP Flows, B-15/B30
Individual / Institutional MAAUM, SIP Flows, B-15/B30 MAAUM of Individual Investors(1)(2)(3) SIP Flows(1) MAAUM of B-15/B-30(1)(2) 39.2 41.4 47.2 54.8 70.9 74.2 82.1 83.4 10.1 13.5 21.1 22.9 26.2 27.4 16% 16% 16% 17% 19% 14% 15% 15% (MAAUM in ₹ bn) B15 B30 (SIP contribution in ₹ bn) 81 81 21,814 (MA
Slide 9: HDFC AMC at a glance
HDFC AMC at a glance 48% Equity-Oriented Assets Assets Under Management(1) 52% Non-Equity Oriented Assets ₹ 1,701 bn ₹ 1,866 bn ₹ 3,567 bn US$ 24.6 bn US$ 27.0 bn US$ 51.7 bn 9.3 mm ₹ 118.1 bn Live Accounts(1) PMS & SMA AUM(1) (3) 211 Branches(1)(2); 75k+ Empaneled 1,211 Employees(1) Distribution Pa
Slide 10: Total AUM and Market Share
Total AUM and Market Share Total AUM(1) Market Share in Total AUM(2) ₹ billion HDFC MF, YoY 18% June-2019 14.7% 3,439 3,567 2,920 3,011 Mar-2019 HDFC MF, June-2018 2,306 HDFC MF, 14.5% 13.2% 1,656 1,506 1,089 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Jun-18 Mar-19 Jun-19 ____________________ (1) Source: In
Slide 11: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share #1 Market Share in Actively Managed Equity-oriented Actively Managed Equity-oriented AUM(1) AUM(2) ₹ billion HDFC MF YoY 15 % June-2019 16.2% 1,643 1,689 1,449 1,465 957 Mar-2019 June-2018 HDFC MF HDFC MF 675 16.2% 16.3% 629 406 Mar-14 Mar-15 Mar
Slide 12: AUM by Segment – HDFC AMC and Industry
AUM by Segment – HDFC AMC and Industry HDFC AMC MF AUM by Segment (1)(3) Industry AUM by Segment(2)(3) June-2019 June-2019 Others Others 1.4% 8.5% Liquid 23.8% Liquid 19.3% Equity Equity 43.3% 47.7% Debt Debt 27.1% 29.0% Mar-2019 June-2018 Mar-2019 June-2018 Others Others Others Others 1.3% 1.5% 8.1
Slide 13: Individual Investors – no of Accounts & MAAUM
Individual Investors – no of Accounts & MAAUM Number of Live Individual Accounts (in millions) (1) Individual MAAUM % of Total(1) YoY 16% YoY 10% 624 931 945 1,350 1,863 1,908 2,167 2,214 9.03 9.20 62.2% 62.4% 63.0% 8.36 8.05 59.2% 56.3% 56.0% 54.6% 54.3% 52.8% 6.15 5.55 5.14 4.44 Mar-14 Mar-15 Mar-
Slide 14: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share (June-19) Individual Assets Market Share (Mar-19) Individual Assets Market Share (June-18) 15.7% 15.4% 15.4% 13.6% 13.7% 14.3% 9.9% 9.7% 9.3% 9.2% 9.9% 9.4% 8.9% 8.6% 8.8% HDFC ICICI Pru SBI ABSL MF Reliance HDFC ICICI Pru
Slide 15: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 25.0 28% 28% 28% (Unique Investors in million) 19.3 19.6 20.0 17.6 15.0 10.0 4.9 5.3 5.4 5.0 0.0 June’18 Mar'19 June'19 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as ident
Slide 16: Systematic Transactions
Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Strong Growth in Systematic Transactions (₹ mm) Long Tenure SIP Book(1) 3.43 12,697 79.0% 11,651 11,816 66.6% 11,531 6,768 Over 5 Years Over 10 Years 4,745 4,854 1.23 3,082 Strong and growing “Order Book” to provide pr
Slide 17: Multi-channel Distribution Network
Multi-channel Distribution Network Well Diversified Distribution Channel Total AUM (June-19) Equity-oriented AUM (June-19) HDFC Bank 7.7% HDFC Bank 10.3% Banks, 13.3% Direct 18.8% Banks, 16.4% Direct 39.2% IFAs 27.5% National Distributors IFAs National Distributors 24.6% 40.3% 20.0% Mar-2019 HDFC Ba
Slide 18: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities(1) #2 Player in B-30 Markets(1) B 30, SBI MF, 13.8% 18.0% Others, 37.4% HDFC MF, 12.4% ICICI Pru UTI MF, MF, 11.0% 10.4% Reliance MF, T 30, 10.8% 86.2% Network of 211 branches with 135 in B-30 cities(2) c. 75k+ empaneled distribution partners _____
Slide 19: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 32.8% 30.3% 38.5% {•} 69.9% Digitization Across Functions 67.2% 69.7% 61.5% 30.1% FY15 FY19 Q1FY19 Q1FY20 Electronic Physical Strong online presence - dedicated separate dig
Slide 20: Financials
Financials 15
Slide 21: Ind AS 116 - Leases
Ind AS 116 - Leases Adoption of Indian Accounting Standard 116 - Leases with effect from 1st April 2019. Effective April 01, 2019, the Company has adopted Ind AS 116 - Leases and applied it to all lease contracts existing on April 01, 2019 using the modified retrospective method. Consequently, the c
Slide 22: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (Rs. mm) Particulars Q1 FY20 Q1 FY19 Change Income Revenue from Operations 5,044 4,712 7% Other Income 484 299 62% Total Income 5,528 5,011 10% Expenses Finance Costs 23 - - Fees and Commission Expenses 114 839 -86% Employee Benefit Expenses 567 538 5% Depreci
Slide 23: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses PBT&OI (bps of AAUM) 63 59 56 29 22 14 42 34 37 YE FY18 YE FY19 3M FY 20 As per Ind AS ____________________ Based on internal computations 18
Slide 24: Return On Equity and Dividend Payout Ratio
Return On Equity and Dividend Payout Ratio Return on Equity(1) FY15 FY16 FY17 FY18 FY19* 41.1% 42.1% 42.8% 40.3% 35.0% *Return on Equity has reduced in FY 19 due to substantial increase in average networth Return on Equity from FY15 to FY18 was under Previous GAAP whereas for FY19, it is under Ind A
Slide 25: Thank You
ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 20
Slide 26: 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
HDFC Asset Management Company — Q1 FY2020 Earnings Presentation on 6ix