Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q4 FY22 Earnings Presentation
39 slides from Hdfc Asset Management's earnings presentation, April 2022
Slide 1: HDFC Asset Management Company Limited Q4 FY21-22
HDFC Asset Management Company Limited Q4 FY21-22 (For the quarter ended March 31, 2022) 1
Slide 2: HDFC AMC at a glance
HDFC AMC at a glance ₹ 4,321 bn ₹ 4,076 bn QAAUM1 Closing AUM1 ₹ 2,599 bn ₹ 92 bn Individual PMS & SMA ₹ 2,068 bn ₹ 2,095 bn MAAUM1 AUM2 equity oriented equity oriented AUM ₹ 1,980 bn ₹ 1,441 bn ₹ 686 bn Actively Managed Equity-oriented - QAAUM1 Debt - QAAUM1 Liquid - QAAUM1 11.5% 14.1% 13.3% market
Slide 3: Industry
Industry
Slide 4: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 40% 45% 46% 41% 47% 48% 38.2 38.4 37.7 37.6 32.1 5.3 5.5 31.4 5.3 5.5 3.7 4.8 5.1 3.8 4.6 4.5 4.6 4.1 QAAUM (₹ trn) 10.9 10.2 10.3 9.5 AUM (₹ trn) 11.0 10.6 17.2 17.6 17.6 18.1 12.7 13.0 Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22
Slide 5: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 54% 55% 55% 16% 17% 17% 128.7 37.9 37.7 37.9 37.7 119.5 6.3 6.2 32.2 32.2 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 97.3 17.1 16.9 5.2 14.9 31.6 31.5 26.9 17.3 20.9 20.8 Mar-21 Dec
Slide 6: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual MAAUM by Asset class Equity MAAUM by Investor category Equity MAAUM by Location 68% 74% 75% 91% 91% 90% 27% 27% 27% 20.9 20.8 17.1 17.3 17.1 17.3 17.3 5.4 5.1 1.6 1.7 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 4.6 4.7 12.9 12.9 5.6
Slide 7: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 37.3 49.1 52.8 123 113 5.7 5.8 (SIP contribution in ₹ bn) (SIP AUM in ₹ tn) 92 4.3 Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 No. of SIP Accounts (mm) ____________________ Source: AMFI 7
Slide 8: HDFC AMC
HDFC AMC
Slide 9: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 4% YoY 3% 4,156 4,471 4,321 4,367 3,955 4,076 Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2021 Dec-2021 Mar-2022 Mar-2021 Dec-2021 Mar-2022 HDFC MF,
Slide 10: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 4% YoY 3% 4,124 4,428 4,275 4,322 4,028 3,923 Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2021 Dec-2021 Mar-2022 Mar-2021 Dec-2021 Mar-2022
Slide 11: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 19% YoY 21% 1,966 1,980 1,967 1,995 1,666 1,654 Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2021 Dec-2021 Mar-2022 Mar-202
Slide 12: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -9% YoY -14% 1,588 1,593 1,522 1,524 1,441 1,309 Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2021 Dec-2021 Mar-2022 Mar-2021 Dec-2021 Mar-2022 HDFC MF
Slide 13: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -11% YoY -14% 769 704 686 638 669 550 Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2021 Dec-2021 Mar-2022 Mar-2021 Dec-2021 Mar-2022 HDFC MF, HDFC MF
Slide 14: 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 Mar-2022 Others Mar-2022 Others Others Liquid 2.9% 14.3% Liquid 3.0% 14.6% 15.9% 13.5% Equity Liquid Equity Liquid Equity 45.7% Equity 12.0% 48.1% 47.9% 13.4% 51.4% Debt Debt 33.3% Debt
Slide 15: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 10% YoY 10% 2,361 2,623 2,599 9.77 62.4% 9.50 59.4% 8.86 57.6% 55.2% Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 Industry Mar-22 Individual MAAUM (Rs bn) Individual customers prefer
Slide 16: Amongst preferred choice of Individual Investors
Amongst preferred choice of Individual Investors Individual Assets Market Share Mar-21 Dec-21 Mar-22 13.7% 12.8% 12.7% 12.5% 12.8% 12.3% 12.6% 12.6% 12.5% 7.4% 7.3% 7.9% 7.9% 6.8% 6.6% HDFC MF #2 MF #3 MF #4 MF #5 MF #1 HDFC MF #3 MF #4 MF #5 MF #1 MF #2 HDFC MF #4 MF #5 MF MF MF Source: AMFI , base
Slide 17: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 40.0 23% 19% 17% (Unique Investors in million) 35.0 33.7 30.6 30.0 25.0 22.8 20.0 15.0 10.0 5.3 5.7 5.8 5.0 0.0 Mar-21 Dec-21 Mar-22 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Inves
Slide 18: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 3.60 86% 12.3 11.8 11.9 76% 11.5 11.3 10.4 6.8 1.77 Over 5 Years Over 10 Years 4.9 SIP AUM(2): ₹ 712 bn Strong and stable “Order Book” to provide predictable flows Mar-16 Mar-17 Mar
Slide 19: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Mar-2022) Equity-oriented AUM (Mar-2022) HDFC Bank 5.9% HDFC Bank 8.6% Banks 10.5% Direct Banks 13.5% Direct 21.9% 41.6% MFDs 27.8% MFDs National Distributors 41.3% 23.3% National Distributors 20.1% Mar-2021 HDFC Ba
Slide 20: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities #2 Player in B-30 Markets B 30, MF #1, 16.5% 21.3% Others, 41.0% HDFC MF, 11.0% MF #3, 10.8% MF #5, MF #4, T 30, 7.7% 8.2% 83.5% We serve customers across ~99% of all pincodes in India Network of 228 branches with 150 in B-30 cities(2) 75k+ empanel
Slide 21: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 18% 24% 31% Digitization Across Functions 82% 76% 69% FY 19-20 FY 20-21 FY 21-22 Electronic Physical Strong online presence - dedicated separate digital platforms distributi
Slide 22: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced SIP Strengthening – Facial Recognition Improved User Journey Drop Management transaction options, Doubling conversion rate retention, renewals Multiple options for MFDs to initiate Enabled transactions for Transact on call for MFDs bulk transactions in one go Non-indiv
Slide 23: Embedding ESG Principles
Embedding ESG Principles Inclusive Health & Environment Growth Safety Grow sustainably Human to benefit all stakeholders Rights Diversity Ethics, Well Being of Transparency Stakeholders & Employees Accountability 23
Slide 24: Caring about Environment
Caring about Environment 76% 800+ Kgs transactions are of E-waste processed in supported by integrated an Environment Friendly online platform manner ‘Nuture Nature’ LEED Gold A tree was planted for certified head office every equity SIP which (since 2014) was registered for a specific tenure Rejuve
Slide 25: Inclusive Growth
Inclusive Growth 400+ ~ 10,000 Investor Awareness women expressing Programmes for women interest for taking their #BarniSeAzadi launched first step towards on 75th Independence financial liberation Day 1,100+ 10,000+ Employees completed Beneficiaries the CFA Investment Foundation CSR focus areas: ✓
Slide 26: Robust Governance practices
Robust Governance practices ESG Performance Award 50%+ Dun & Bradstreet’s annual of Board of Directors are publication 'India's Top 500 independent Companies 2021’ Diverse backgrounds of individual directors play a Well-defined significant role to guide our Privacy Policy and includes business strat
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 – Year Ended Earnings
Financials Summary – Year Ended Earnings (₹ mm) Particulars YE FY22 YE FY21 Change Income Revenue from Operations 21,154 18,525 14% Other Income 3,178 3,492 -9% Total Income 24,332 22,017 11% Expenses Finance Costs 86 90 -4% Fees and Commission Expenses 54 57 -5% Employee Benefit Expenses # 3,122 2,
Slide 30: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (₹ mm) Particulars Q4 FY22 Q4 FY21 Change Income Revenue from Operations 5,163 5,029 3% Other Income 646 426 52% Total Income 5,809 5,455 6% Expenses Finance Costs 20 24 -17% Fees and Commission Expenses 15 16 -6% Employee Benefit Expenses # 714 639 12% Deprec
Slide 31: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (₹ mm) Particulars Q4 FY22 Q3 FY22 Change Income Revenue from Operations 5,163 5,497 -6% Other Income 646 862 -25% Total Income 5,809 6,359 -9% Expenses Finance Costs 20 22 -9% Fees and Commission Expenses 15 13 15% Employee Benefit Expenses # 714 7
Slide 32: Notes
NOTES 1. The Nomination and Remuneration Committee (NRC) of the Board of Directors of the Company at its meeting held on February 22, 2021 had approved grant of 11,45,000 stock options representing 11,45,000 equity shares of ₹ 5 each, at a grant price of ₹ 2,934.25 per equity share (being the market
Slide 33: Notes
NOTES 2. COVID-19 was declared a pandemic in March 2020 and since then it has had a sizable impact on the economies of various countries. Nations across the globe at this juncture seem to be returning to normalcy as a result of waning infection levels. An aggressive vaccination drive by the governme
Slide 34: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin 63 59 (bps of AAUM) 54 48 48 29 22 13 12 13 37 41 34 36 35 YE FY18 YE FY19 YE FY20 YE FY21 YE FY22 As per Ind AS Operating margin (bps of AAUM) for Q1 FY 22, Q2 FY 22, Q3 FY 22 and Q4 FY 22 are 35, 36, 35 and 35 respective
Slide 35: Statement of Assets and Liabilities
Statement of Assets and Liabilities (₹ m m ) As at March As at March Particulars 31, 2022 31, 2021 Assets Financial As s ets 56,840 48,717 Non Financial As s ets 1,964 2,230 Total Assets 58,804 50,947 Liabilities And Equity Liabilities Financial Liabilities 2,188 2,300 Non-Financial Liabilities 1,31
Slide 36: Breakup of Investments
Breakup of Investments Total Investments: ₹ 55,702 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 4.6% Arbitrage, 13.2% Debentures & Tax Free Bonds, 8.4% Mutual Funds, 88.7% Other Equity, AIFs, Liquid and Debt, 82.2% etc, 2.9% Mutual Funds Other Equity, AIFs, etc
Slide 37: Return On Equity and Dividend Per Share
Return On Equity and Dividend Per Share Return on Equity(1) FY 18 FY 19 FY 20 FY 21 FY 22 40.3% 35.0% 35.6% 30.1% 27.0% Return on Equity for FY18 was reported under Previous GAAP. FY19 onwards, it is reported under Ind AS Dividend Per Share (₹) (2) and Dividend Payout Ratio (3) 56% 66% 47% 55% 64% 3
Slide 38: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 38
Slide 39: 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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