Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q3 FY20 Earnings Presentation
27 slides from Hdfc Asset Management's earnings presentation, Jan 21, 2020
Slide 1: Outcome of Board Meeting cover letter
-".HDFC MUTUAL FUND BHAROSA APNO KA Ref/No/HDFCAMC/SE/2019-20/97 Date-January 21, 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 Depart
Slide 2: HDFC Asset Management Company Limited Q3 FY19-20
HDFC Asset Management Company Limited Q3 FY19-20 1
Slide 3: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 40% 39% 40% 42% 43% 41% 25.7 26.8 26.5 23.6 2.5 24.5 2.7 2.2 22.9 1.6 2.3 5.6 5.4 1.7 4.6 5.4 4.0 4.5 8.4 QAAUM (₹ trn) 7.9 8.3 7.8 AUM (₹ trn) 7.3 7.0 9.4 10.0 10.6 9.7 10.4 10.9 Dec-18 Sep-19 Dec-19 Dec-18 Sep-19 Dec-19 Dec-18
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) 79.8 85.2 86.6 10.1 13.5 21.1 25.4 26.2 28.4 29.8 15% 16% 16% 85 (MAAUM in ₹ tn) 83 (SIP contribution in ₹ bn) 80 81 23.0 (MAAUM ₹ trn) 21.6 71 20.5 12.7 11.8 (47%) 11.2 (46%) (46%)
Slide 5: HDFC AMC at a glance
HDFC AMC at a glance Quarterly Average AUM Closing AUM Assets Under ₹ 2,144 bn Assets Under ₹ 1,978 bn Equity-Oriented US$ 30.0 bn Equity-Oriented US$ 27.7 bn Management(1) Management(1) 44% ₹ 3,825 bn 56% 46% ₹ 3,689 bn 54% Non-Equity Non-Equity ₹ 1,681 bn US$ 53.6 bn Oriented ₹ 1,711 bn US$ 51.7 b
Slide 6: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 12% YoY 14% 3,766 3,825 3,662 3,689 3,350 3,291 Dec-18 Sep-19 Dec-19 Dec-18 Sep-19 Dec-19 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2018 Sep-2019 Dec-2019 Dec-2018 Sep-2019 Dec-2019 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 12% YoY 10% 1,610 1,666 1,637 1,694 1,482 1,535 Dec-18 Sep-19 Dec-19 Dec-18 Sep-19 Dec-19 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2018 Sep-2019 Dec-2019 Dec-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 Dec-2019 Others Dec-2019 Others Dec-2019 Others Dec-2019 Others 1.8% 9.3% 2.1% 10.2% Liquid Liquid 25.9% Equity 21.5% Liquid Equity Equity Liquid 39.6% Equity 17.2% 41.1% 44.0% 20.3% 46.4% 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 12% YoY 6% 2,033 2,180 2,274 9.39 9.36 61.8% 59.5% 8.86 57.4% 53.4% Dec-18 Sep-19 Dec-19 Dec-18 Sep-19 Dec-19 Industry Dec-19 (2) Individual MAAUM (Rs bn)(1) Individual cust
Slide 10: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share (Dec-19) Individual Assets Market Share (Sep-19) Individual Assets Market Share (Dec-18) 15.5% 15.6% 13.6% 13.6% 15.4% 13.9% 10.7% 10.4% 8.5% 8.7% 7.8% 9.5% 9.4% 9.3% 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 27.3% 27.8% 27.3% (Unique Investors in million) 20.0 20.3 20.0 19.1 15.0 10.0 5.2 5.5 5.5 5.0 0.0 Dec’18 Sep'19 Dec'19 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as i
Slide 12: Systematic Transactions
Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Strong Growth in Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 3.42 12.8 80.3% 12.2 11.7 11.8 68.1% 11.5 6.8 Over 5 Years Over 10 Years 4.7 4.9 1.23 3.1 Strong and growing “Order Book” to provide predictable f
Slide 13: Multi-channel Distribution Network
Multi-channel Distribution Network Well Diversified Distribution Channel Total AUM (Dec-19) Equity-oriented AUM (Dec-19) HDFC Bank 6.4% HDFC Bank 9.9% Banks, 12.2% Direct 18.6% Banks, 15.9% Direct 41.7% IFAs 26.3% National Distributors IFAs National Distributors 24.8% 40.6% 19.8% Sep-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, 12.9% 19.5% Others, 38.0% HDFC MF, 12.6% ICICI Pru MF, 11.3% Nippon T 30, MF, 9.1% UTI MF, 9.6% 87.1% Network of 220 branches with 144 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% 33.6% 30.9% 69.9% Digitization Across Functions 67.2% 66.4% 69.1% 30.1% FY15 FY19 9MFY19 9MFY20 Electronic Physical Strong online presence - dedicated separate digital
Slide 16: Financials
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Slide 17: Financials Summary – Nine Months Earnings
Financials Summary – Nine Months Earnings (₹ mm) Particulars 9ME FY20 9ME FY19 Change Income Revenue from Operations 15,271 14,287 7% Other Income 1,667 1,204 38% Total Income 16,938 15,491 9% Expenses Finance Costs 68 - - Fees and Commission Expenses 193 2,104 -91% Impairment on Financial Instrumen
Slide 18: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (₹ mm) Particulars Q3 FY20 Q3 FY19 Change Income Revenue from Operations 5,247 4,771 10% Other Income 673 556 21% Total Income 5,920 5,327 11% Expenses Finance Costs 22 - - Fees and Commission Expenses 71 530 -87% Impairment on Financial Instruments - 90 - Emp
Slide 19: 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 20: 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 9M FY 20 As per Ind AS ____________________ Based on internal computations 19
Slide 21: Return On Equity and Dividend Payout Ratio
Return On Equity and Dividend Payout Ratio Return on Equity(1) FY15 9ME 20 FY16 FY17 FY18 FY19* (annualized) 41.1% 42.1% 42.8% 40.3% 35.0% 39.4% *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 f
Slide 22: Thank You
ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 21
Slide 23: 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 24: HDFC AMC net profit for the 9 month period ended Dec 2019 at ₹10,125 million
ss Press Release 21 January, 2020 HDFC AMC net profit for the 9 month period ended Dec 2019 at ₹10,125 million, a year on year increase of 55%. Quarterly Average AUM (QAAUM) rises to ₹3,825 billion, a year on year increase of 14%. HDFC Asset Management Company Limited (HDFC AMC) declares financial r
Slide 25: Corporate Highlights
Mumbai, 21 January, 2020: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended December 31, 2019. CORPORATE HIGHLIGHTS QAAUM of ₹3,825 billion as of December 31, 2019 compared to ₹3,350 billion as on December 31, 2018, a growth of 14%. 14.3% market s
Slide 26: Financial Highlights for the Quarter Ended December 31, 2019
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED DECEMBER 31, 2019 • The Operating Profit of the company for the quarter ended December 31, 2019 was ₹3,987 million as compared to ₹3,127 million for the quarter ended December 31, 2018. This is an increase of 28%. • Profit before tax for the quarter ended D
Slide 27: 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
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