Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q3 FY21 Earnings Presentation
33 slides from Hdfc Asset Management's earnings presentation, Jan 28, 2021
Slide 1: Regulation 30 disclosure cover letter to stock exchanges
Ref/No/HDFCAMC/SE/2020-21/98 Date – January 28, 2021 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
Slide 2: HDFC Asset Management Company Limited Q3 FY20-21
HDFC Asset Management Company Limited Q3 FY20-21 (For the quarter ended December 31, 2020) 1
Slide 3: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 40% 37% 38% 41% 39% 39% 29.7 31.0 26.8 27.6 3.4 3.2 26.5 26.9 2.5 2.9 4.8 2.7 2.9 4.5 5.4 5.3 4.6 4.3 QAAUM (₹ trn) AUM (₹ trn) 10.5 11.0 8.3 9.1 8.4 9.2 10.6 10.3 11.2 10.9 10.4 12.2 Dec-19 Sep-20 Dec-20 Dec-19 Sep-20 Dec-20 Dec
Slide 4: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 53% 52% 52% 16% 16% 16% 92.8 93.8 31.0 31.0 86.6 27.7 27.3 27.7 27.3 5.0 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 4.3 4.5 14.8 12.7 13.3 26.0 23.0 23.3 14.5 16.2 14.4 Dec-19 Sep-2
Slide 5: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual MAAUM by Asset class Equity MAAUM by Investor category Equity MAAUM by Location 66% 65% 66% 90% 90% 91% 25% 27% 27% 16.2 11.8 11.8 14.5 14.4 10.7 10.4 1.1 10.7 10.4 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 5.4 1.1 3.2 1.0 4.9 5.0
Slide 6: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 29.8 33.4 34.7 85 84 (SIP contribution in ₹ bn) 78 (SIP AUM in ₹ tn) 4.0 3.4 3.2 Dec-19 Sep-20 Dec-20 Dec-19 Sep-20 Dec-20 No. of SIP Accounts (mm) ____________________ (1) Source: AMFI 5
Slide 7: HDFC AMC at a glance
HDFC AMC at a glance Quarterly Average AUM Closing AUM Assets Under ₹ 2,352 bn Assets Under ₹ 2,422 bn Equity-Oriented US$ 32 bn Equity-Oriented US$ 33 bn Management(1) Management(1) 40% ₹ 3,895 bn 60% 40% ₹ 4,068 bn 60% Non-Equity Non-Equity ₹ 1,542 bn US$ 53 bn Oriented ₹ 1,646 bn US$ 56 bn Orient
Slide 8: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 2% YoY 10% 3,825 3,755 3,895 3,689 4,068 3,544 Dec-19 Sep-20 Dec-20 Dec-19 Sep-20 Dec-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2020 Dec-2020 Dec-2019 Sep-2020 HDFC MF, Dec-2019 Sep-2020
Slide 9: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 1% YoY 10% 3,815 3,732 3,867 3,678 4,039 3,519 Dec-19 Sep-20 Dec-20 Dec-19 Sep-20 Dec-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2020 Dec-2020 Dec-2019 Sep-2020 HDFC MF, Dec-201
Slide 10: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -10% YoY -5% 1,666 1,694 1,605 1,436 1,505 1,403 Dec-19 Sep-20 Dec-20 Dec-19 Sep-20 Dec-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2020 Dec-2020 HDFC MF, HDFC M
Slide 11: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 34% YoY 40% 1,453 1,553 1,085 1,212 1,255 1,110 Dec-19 Sep-20 Dec-20 Dec-19 Sep-20 Dec-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2020 Dec-2020 HDFC MF, HDFC MF, Dec-2019 Sep-2020 13.8% De
Slide 12: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -17% YoY -0% 989 995 791 775 788 821 Dec-19 Sep-20 Dec-20 Dec-19 Sep-20 Dec-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2020 Dec-2020 HDFC MF, HDFC MF, Dec-2019 Sep-2020 17.2% Dec-2019 Se
Slide 13: 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 Dec-2020 Others Others Dec-2020 Others 2.0% 10.7% 2.0% 11.0% Liquid Liquid 21.1% Equity 19.2% Equity Equity Liquid Equity Liquid 37.8% 39.2% 39.6% 16.1% 40.4% 14.4% Debt Debt Debt Debt 3
Slide 14: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY -2% YoY -4% 2,274 2,036 2,228 9.36 9.21 59.5% 8.99 55.2% 55.3% 52.2% Dec-19 Sep-20 Dec-20 Dec-19 Sep-20 Dec-20 Industry Dec-20 Individual MAAUM (Rs bn) Individual customers prefer
Slide 15: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share Dec-20 Sep-20 Dec-19 13.8% 12.9% 14.1% 15.5% 12.2% 13.1% 12.2% 13.6% 10.7% 7.6% 7.1% 7.7% 6.8% 8.5% 7.6% HDFC MF ICICI Pru SBI MF ABSL MF Axis MF HDFC MF ICICI Pru SBI MF ABSL MF Nippon HDFC ICICI Pru SBI ABSL MF Nippon MF
Slide 16: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 25.0 27% 26% 25% (Unique Investors in million) 21.3 21.5 20.3 20.0 15.0 10.0 5.5 5.5 5.4 5.0 0.0 Dec-19 Sep-20 Dec-20 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as identif
Slide 17: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 83% 12.2 72% 11.8 11.5 11.3 2.98 9.0 9.1 6.8 Over 5 Years Over 10 Years 1.23 4.7 4.9 SIP AUM(2): ₹ 532 bn 3.1 Strong and stable “Order Book” to provide predictable flows Mar-14 Mar-
Slide 18: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Dec-2020) Equity-oriented AUM (Dec-2020) HDFC Bank 5.3% HDFC Bank 9.2% Banks 9.6% Direct Banks 14.4% 20.6% Direct 49.2% MFDs 24.4% MFDs National Distributors 41.2% 23.9% National Distributors 16.8% Dec-2019 HDFC Ban
Slide 19: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities #2 Player in B-30 Markets B 30, 14.4% SBI MF, 20.6% Others, 39.6% HDFC MF, 11.8% ICICI Pru MF, 11.2% UTI MF, T 30, 8.3% ABSL, 8.6% 85.6% We serve customers across 98% of all pincodes in India Network of 224 branches with 146 in B-30 cities(2) 65k+
Slide 20: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 16% 33% 31% 70% Digitization Across Functions 84% 67% 69% 30% FY15 FY19 FY20 FY21 YTD Electronic Physical Strong online presence - dedicated separate digital platforms distr
Slide 21: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced hdfcfund.com WhatsApp for Investors Investors & Partners: Quick links for easy WhatsApp for Distributors for easy transactions, online transactions, website landing page for easy transactions link statements and more assisting with digital transactions etc. generation,
Slide 22: Financials
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Slide 23: Financials Summary – Nine Months Earnings
Financials Summary – Nine Months Earnings (₹ mm) Particulars 9ME FY21 9ME FY20 Change Income Revenue from Operations 13,496 15,271 -12% Other Income 3,066 1,667 84% Total Income 16,562 16,938 -2% Expenses Finance Costs 66 68 -3% Fees and Commission Expenses 41 193 -79% Employee Benefit Expenses 1,62
Slide 24: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (₹ mm) Particulars Q3 FY21 Q3 FY20 Change Income Revenue from Operations 4,819 5,247 -8% Other Income 1,131 673 68% Total Income 5,950 5,920 1% Expenses Finance Costs 22 22 0% Fees and Commission Expenses 14 71 -80% Employee Benefit Expenses 568 571 -1% Deprec
Slide 25: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (₹ mm) Particulars Q3 FY21 Q2 FY21 Change Income Revenue from Operations 4,819 4,562 6% Other Income 1,131 1,137 -1% Total Income 5,950 5,699 4% Expenses Finance Costs 22 22 0% Fees and Commission Expenses 14 13 8% Employee Benefit Expenses 568 535
Slide 26: Notes
NOTES 1. The Covid 19 pandemic and consequent lockdown earlier impacted a whole range of economic activities adversely. The phase wise opening up initiated in the quarter ended June 30, 2020 has led to a recovery in varied measures across different sectors of the economy, industries and businesses.
Slide 27: Notes
NOTES 2. 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 28: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 63 59 54 48 29 22 13 12 37 41 36 34 YE FY18 YE FY19 YE FY20 9ME FY21 As per Ind AS Operating margin (bps of AAUM) in FY 21 for Q1, Q2 and Q3 are 34, 37 and 38 respectively. ____________________ Based on inter
Slide 29: Statement of Assets and Liabilities
Statement of Assets and Liabilities (₹ mm) As at As at Particulars December 31, March 31, 2020 2020 Assets Financial Assets 45,241 40,662 Non Financial Assets 2,051 2,425 Total Assets 47,292 43,087 Liabilities And Equity Liabilities Financial Liabilities 2,169 2,251 Non-Financial Liabilities 620 543
Slide 30: Breakup of Investments
Breakup of Investments Total Investments: ₹ 43,706 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 0.6% Arbitrage, 16.6% Debentures & Tax Free Bonds, 13.4% Mutual Funds, 85.1% Liquid and Debt, 82.8% Other Equity, AIFs, etc, 1.6% Mutual Funds Other Equity, AIFs, et
Slide 31: Return On Equity and Dividend Per Share
Return On Equity and Dividend Per Share 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 FY 20 FY
Slide 32: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 31
Slide 33: 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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