Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q3 FY23 Earnings Presentation
44 slides from Hdfc Asset Management's earnings presentation, Jan 24, 2023
Slide 1: Outcome of Board Meeting cover letter
Ref/No/HDFCAMC/SE/2022-23/72 Date – January 24, 2023 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 Ma
Slide 2: Press Release: HDFC AMC net profit for quarter ended December 31, 2022
ss Press Release January 24, 2023 HDFC AMC net profit for the quarter ended December 31, 2022 at ₹3,695 million, an increase of 3% over quarter ended December 31, 2021. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period ended December 31, 2022. • Amongst India
Slide 3: Corporate Highlights
Mumbai, 24 January, 2023: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended December 31, 2022. CORPORATE HIGHLIGHTS • QAAUM of ₹4,448 billion for the quarter ended December 31, 2022 compared to ₹4,471 billion for the quarter ended December 31, 2021,
Slide 4: Financial Highlights for the Quarter Ended December 31, 2022
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED DECEMBER 31, 2022 • The Operating Profit for the quarter ended December 31, 2022 was ₹3,974 million as compared to ₹3,989 million for the quarter ended December 31, 2021. • Profit before tax for the quarter ended December 31, 2022 was up by 3% to ₹5,008 mil
Slide 5: 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
Slide 6: HDFC Asset Management Company Limited Q3 FY22-23
HDFC Asset Management Company Limited Q3 FY22-23 (For the quarter ended December 31, 2022) 1
Slide 7: HDFC AMC at a glance
HDFC AMC at a glance ₹ 4,448 bn ₹ 4,481 bn QAAUM1 Closing AUM1 ₹ 3,014 bn ₹ 27 bn Individual PMS & SMA ₹ 2,393 bn ₹ 2,440 bn MAAUM1 AUM2 equity oriented equity oriented AUM ₹ 2,269 bn ₹ 1,166 bn ₹ 760 bn Actively Managed Equity-oriented - QAAUM1 Debt - QAAUM1 Liquid - QAAUM1 11.7% 13.5% 13.7% market
Slide 8: Industry
Industry
Slide 9: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 45% 48% 50% 47% 50% 50% 40.3 37.7 38.4 39.9 38.2 39.1 6.1 6.1 5.3 5.7 5.3 5.8 4.6 4.9 5.0 4.8 5.6 5.5 8.5 8.6 QAAUM (₹ trn) 10.9 8.8 8.6 10.3 AUM (₹ trn) 18.9 19.9 17.6 19.3 20.1 17.2 Dec-21 Sep-22 Dec-22 Dec-21 Sep-22 Dec-22 Dec
Slide 10: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 55% 57% 58% 17% 17% 17% 40.8 39.9 40.8 140.3 39.9 37.9 137.3 37.9 7.0 6.7 119.5 6.3 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 17.1 17.2 17.1 33.1 33.8 31.6 20.9 22.7 23.6 Dec-21 Se
Slide 11: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual MAAUM by Asset class Equity MAAUM by Investor category Equity MAAUM by Location 74% 78% 78% 91% 91% 91% 27% 27% 27% 23.6 20.2 22.7 20.2 19.5 19.5 20.9 1.9 17.1 5.3 1.8 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 5.1 17.1 5.4 5.2 5.4
Slide 12: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 49.1 58.4 61.2 130 136 6.7 (SIP contribution in ₹ bn) 113 6.4 (SIP AUM in ₹ tn) 5.7 Dec-21 Sep-22 Dec-22 Dec-21 Sep-22 Dec-22 No. of SIP Accounts (mm) ____________________ Source: AMFI 7
Slide 13: HDFC AMC
HDFC AMC
Slide 14: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY -0.5% YoY 3% 4,471 4,293 4,448 4,367 4,222 4,481 Dec-21 Sep-22 Dec-22 Dec-21 Sep-22 Dec-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2021 Sep-2022 Dec-2022 Dec-2021 Sep-2022 Dec-2022 HDFC M
Slide 15: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY -1% YoY 2% 4,428 4,241 4,389 4,322 4,169 4,412 Dec-21 Sep-22 Dec-22 Dec-21 Sep-22 Dec-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2021 Sep-2022 Dec-2022 Dec-2021 Sep-2022 Dec-202
Slide 16: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 15% YoY 18% 2,113 2,269 2,148 2,314 1,966 1,967 Dec-21 Sep-22 Dec-22 Dec-21 Sep-22 Dec-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2021 Sep-2022 Dec-2022 Dec-202
Slide 17: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -27% YoY -23% 1,593 1,524 1,200 1,166 1,167 1,167 Dec-21 Sep-22 Dec-22 Dec-21 Sep-22 Dec-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2021 Sep-2022 Dec-2022 Dec-2021 Sep-2022 Dec-2022 HDFC M
Slide 18: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 8% YoY 12% 704 741 760 747 669 681 Dec-21 Sep-22 Dec-22 Dec-21 Sep-22 Dec-22 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2021 Sep-2022 Dec-2022 Dec-2021 Sep-2022 Dec-2022 HDFC MF, HDFC MF, H
Slide 19: 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-2022 Others Dec-2022 Others Others Liquid 2.9% 15.3% 2.8% 15.4% Liquid 17.1% 16.7% Liquid Equity Liquid Equity Equity 13.7% Equity 12.6% 50.4% Debt 49.5% 53.8% Debt 54.5% 26.2% Debt
Slide 20: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 15% YoY 12% 2,623 2,858 3,014 10.67 65.5% 65.9% 10.31 9.50 59.4% 57.8% Dec-21 Sep-22 Dec-22 Dec-21 Sep-22 Dec-22 Industry Dec-22 Individual MAAUM (Rs bn) Individual customers pref
Slide 21: Amongst preferred choice of Individual Investors
Amongst preferred choice of Individual Investors Individual Assets Market Share Dec-21 Sep-22 Dec-22 12.6% 12.6% 12.5% 13.0% 12.6% 12.5% 12.9% 12.8% 12.8% 7.9% 6.8% 7.6% 6.8% 7.2% 6.9% MF #1 HDFC 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 22: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 40.0 19% 17% 17% (Unique Investors in million) 36.0 36.7 35.0 30.6 30.0 25.0 20.0 15.0 10.0 5.7 6.1 6.3 5.0 0.0 Dec-21 Sep-22 Dec-22 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Inves
Slide 23: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions(1) (₹ bn) Long Tenure SIP Book(2) 4.13 86% 15.7 77% 14.3 12.3 11.8 11.9 11.5 11.3 10.4 1.77 Over 5 Years Over 10 Years 6.8 4.9 SIP AUM(3): ₹ 848 bn Strong and stable “Order Book” to provide predictable flows Mar-
Slide 24: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Dec-2022) Equity-oriented AUM (Dec-2022) HDFC Bank 5.8% HDFC Bank 8.4% Banks 10.6% Direct Banks 13.5% Direct 22.1% 40.9% MFDs 28.2% MFDs 40.8% National Distributors 23.7% National Distributors 20.3% Dec-2021 HDFC Ba
Slide 25: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities #2 Player in B-30 Markets B 30, MF #1, 17.6% 21.2% Others, 40.1% HDFC MF, 11.6% MF #3, 11.1% MF #5, MF #4, T 30, 7.9% 8.1% 82.4% We serve customers across ~99% of all pincodes in India Network of 228 branches with 150 in B-30 cities(2) 75k+ empanel
Slide 26: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 18% 24% 19% 31% Digitization Across Functions 82% 76% 81% 69% FY 19-20 FY 20-21 FY 21-22 Q3 FY23 Electronic Physical Strong online presence - dedicated separate digital plat
Slide 27: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced Customer Data Platform Adobe Target Powering all investor Driving user experience campaigns and lead generation OneClickLink Multiple New Features Powering our partners and WhatsApp integration for employees both to create messages, new NFTs and a lot personalised tran
Slide 28: Some of our recent marketing initiatives
Some of our recent marketing initiatives HDFC MF Investor education initiatives Weekend Bytes Yearbook 2023 Market outlook Chartscope NFO Few Product Literatures 23
Slide 29: Embedding ESG Principles
Embedding ESG Principles Inclusive Health & Environment Growth Safety To create sustainable wealth for every stakeholder by focusing on Human Diversity People, Planet and Prosperity Rights Ethics, Well Being of Transparency Stakeholders & Employees Accountability 24
Slide 30: Caring about Environment
Caring about Environment 81% E-waste transactions are processed in an supported by integrated environment friendly online platform manner Kalina Biodiversity Park development across LEED Gold 59,000 sq. ft. located at certified head office the University of Mumbai’s (since 2014) Kalina Campus under
Slide 31: Inclusive Growth
Inclusive Growth Financial Literacy Health and well being* 500+ 5700+ 2,300+ 52 Athletes & Investor Awareness Children given Cancer patients 30 Para-athletes Programmes for women access to nutritious provided with Supported in #BarniSeAzadi launched on meals & quality financial aid Olympic sports 75
Slide 32: Robust Governance practices
Robust Governance practices 50% of Board of Directors are independent W.E. Global Employees' Choice Award 2022 Best Company 'ESG & CSR' committee Best CEO of the Board Best CHRO to drive ESG framework In Large Size Category Adopted ISO Certified CFA Institute’s information security process Asset Man
Slide 33: 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 34: Financials
ASSET MANAGEMENT COMPANY LIMITED
Slide 35: Financials Summary – Nine Months Earnings
Financials Summary – Nine Months Earnings (` mm) Particulars 9ME FY23 9ME FY22 Change Income Revenue from Operations 16,259 15,991 2% Other Income 2,189 2,532 -14% Total Income 18,448 18,523 0% Expenses Finance Costs 73 66 11% Fees and Commission Expenses 31 39 -21% Employee Benefit Expenses # 2,408
Slide 36: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (` mm) Particulars Q3 FY23 Q3 FY22 Change Income Revenue from Operations 5,596 5,497 2% Other Income 1,034 862 20% Total Income 6,630 6,359 4% Expenses Finance Costs 24 22 9% Fees and Commission Expenses 6 13 -54% Employee Benefit Expenses # 790 775 2% Depreci
Slide 37: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (` mm) Particulars Q3 FY23 Q2 FY23 Change Income Revenue from Operations 5,596 5,447 3% Other Income 1,034 1,042 -1% Total Income 6,630 6,489 2% Expenses Finance Costs 24 24 0% Fees and Commission Expenses 6 11 -45% Employee Benefit Expenses # 790 8
Slide 38: Notes
NOTES 1. Under Employees Stock Option Scheme - 2020 ('ESOS - 2020'), apart from stock options granted in the past year(s), the Nomination and Remuneration Committee (NRC) of the Board of Directors of the Company at its meeting held on July 21, 2022 had approved a further grant of 50,000 stock option
Slide 39: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 54 48 48 50 13 12 13 14 41 36 35 36 YE FY20 YE FY21 YE FY22 9ME FY23 Operating margin (bps of AAUM) for Q1 FY 23, Q2 FY 23 and Q3 FY23 are 36, 36 and 35 respectively ____________________ Based on internal com
Slide 40: Statement of Assets and Liabilities
Statement of Assets and Liabilities (` m m ) As at Dec 31, As at Mar 31, Particulars 2022 2022 Assets Financial As s ets 59,103 56,840 Non Financial As s ets 2,067 1,964 Total Assets 61,170 58,804 Liabilities And Equity Liabilities Financial Liabilities 2,380 2,188 Non-Financial Liabilities 1,578 1,
Slide 41: Breakup of Investments
Breakup of Investments Total Investments: ₹ 56,624 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 6.4% Arbitrage, 12.4% Subsidiary, 0.1% Debentures & Tax Free Bonds, 8.0% Mutual Funds, Other Equity, AIFs, 89.0% etc, 2.9% Liquid and Debt, 81.2% Mutual Funds Other
Slide 42: 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 43: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 38
Slide 44: 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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