Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q4 FY2023 Earnings Presentation
44 slides from Hdfc Asset Management's earnings presentation, Apr 25, 2023
Slide 1: Outcome of Board Meeting cover letter
Ref/No/HDFCAMC/SE/2023-24/10 Date – April 25, 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 Mana
Slide 2: Press Release: HDFC AMC net profit for FY ended March 31, 2023
ss Press Release April 25, 2023 HDFC AMC net profit for the Financial Year ended March 31, 2023 at ₹14,239 million, an increase of 2% over Financial Year ended March 31, 2022. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period ended March 31, 2023. • Amongst I
Slide 3: Corporate Highlights
Mumbai, 25 April, 2023: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended March 31, 2023. CORPORATE HIGHLIGHTS • QAAUM of ₹4,498 billion for the quarter ended March 31, 2023 compared to ₹4,321 billion for the quarter ended March 31, 2022, 11.1% mark
Slide 4: Financial Highlights for the Quarter and Year Ended March 31, 2023
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2023 • The Operating Profit for the quarter ended March 31, 2023 was ₹3,948 million as compared to ₹3,780 million for the quarter ended March 31, 2022. • Profit before tax for the quarter ended March 31, 2023 was ₹4,917 million as compared to ₹4,4
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 Q4 FY22-23
HDFC Asset Management Company Limited Q4 FY22-23 (For the quarter ended March 31, 2023) 1
Slide 7: HDFC AMC at a glance
HDFC AMC at a glance ₹ 4,498 bn ₹ 4,367 bn QAAUM1 Closing AUM1 ₹ 2,992 bn ₹ 18 bn Individual PMS & SMA ₹ 2,445 bn ₹ 2,455 bn MAAUM1 AUM2 equity oriented equity oriented AUM ₹ 2,317 bn ₹ 1,179 bn ₹ 730 bn Actively Managed Equity-oriented - QAAUM1 Debt - QAAUM1 Liquid - QAAUM1 12.0% 13.3% 13.1% market
Slide 8: Industry
ASSET MANAGEMENT COMPANY LIMITED Industry
Slide 9: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 46% 50% 49% 48% 50% 51% 40.3 40.5 37.6 39.9 39.4 38.4 6.2 6.1 6.0 5.5 6.1 5.5 4.5 5.0 4.3 5.1 5.5 5.6 8.6 9.2 QAAUM (₹ trn) 8.6 8.8 9.5 10.2 AUM (₹ trn) 19.9 19.9 18.1 20.1 20.0 17.6 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Ma r
Slide 10: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 55% 58% 58% 17% 17% 17% 40.8 40.8 40.0 40.0 144.9 37.7 140.3 37.7 7.0 6.8 128.7 6.2 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 17.2 16.8 16.9 33.8 33.2 31.5 20.8 23.6 23.3 Mar-22 De
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 75% 78% 77% 90% 91% 90% 27% 27% 27% 23.6 23.3 20.2 20.2 19.8 19.8 20.8 1.9 5.3 1.9 17.3 17.3 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 5.4 5.4 5.3 5.1
Slide 12: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 52.8 61.2 63.6 136 143 123 6.8 (SIP contribution in ₹ bn) 6.7 (SIP AUM in ₹ tn) 5.8 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 No. of SIP Accounts (mm) ____________________ Source: AMFI 7
Slide 13: HDFC AMC
ASSET MANAGEMENT COMPANY LIMITED HDFC AMC
Slide 14: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 4% YoY 7% 4,321 4,448 4,498 4,481 4,367 4,076 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2022 Dec-2022 Mar-2023 Mar-2022 Dec-2022 Mar-2023 HDFC MF,
Slide 15: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 3% YoY 6% 4,275 4,389 4,422 4,028 4,412 4,283 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2022 Dec-2022 Mar-2023 Mar-2022 Dec-2022 Mar-2023
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 17% YoY 16% 2,269 2,317 2,314 2,322 1,980 1,995 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2022 Dec-2022 Mar-2023 Mar-202
Slide 17: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -18% YoY -6% 1,309 1,226 1,441 1,167 1,166 1,179 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2022 Dec-2022 Mar-2023 Mar-2022 Dec-2022 Mar-2023 HDFC MF
Slide 18: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 6% YoY 0% 686 760 730 747 550 548 Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2022 Dec-2022 Mar-2023 Mar-2022 Dec-2022 Mar-2023 HDFC MF, HDFC MF, HD
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 Mar-2023 Others Mar-2023 Others Others Liquid 3.2% 15.3% Liquid 3.2% 15.2% 16.2% 12.5% Liquid Equity Liquid Equity Equity Equity 10.9% 50.7% Debt 13.7% 49.1% Debt 54.4% 28.1% 56.2% 26.2%
Slide 20: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 15% YoY 15% 2,599 3,014 2,992 11.27 67.2% 10.67 65.9% 62.4% 9.77 58.1% Mar-22 Dec-22 Mar-23 Mar-22 Dec-22 Mar-23 Industry Mar-23 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 Mar-22 Dec-22 Mar-23 12.8% 12.7% 12.5% 13.0% 13.0% 12.9% 12.9% 12.8% 12.8% 7.9% 6.6% 7.2% 6.9% 7.0% 6.9% MF #1 MF #2 HDFC MF #4 MF #5 MF #1 MF #2 HDFC 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 17% 17% 18% 37.7 (Unique Investors in million) 36.7 35.0 33.7 30.0 25.0 20.0 15.0 10.0 5.8 6.3 6.6 5.0 0.0 Mar-22 Dec-22 Mar-23 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) 4.53 Long Tenure SIP Book(2) 17.1 86% 15.7 77% 12.3 11.5 11.8 11.3 10.4 1.77 Over 5 Years Over 10 Years 6.8 4.9 SIP AUM(3): ₹ 859 bn Strong and stable “Order Book” to provide predictable flows Mar-16 Ma
Slide 24: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Mar-2023) Equity-oriented AUM (Mar-2023) HDFC Bank 5.9% HDFC Bank 8.1% Banks 10.7% Direct Banks 13.3% Direct 23.1% 40.5% MFDs 28.7% MFDs 39.9% National Distributors 23.8% National Distributors 20.1% Mar-2022 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, 17.8% 21.4% Others, 39.9% HDFC MF, 11.6% MF #3, 11.3% MF #5, MF #4, T 30, 7.7% 8.1% 82.2% 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 FY 22-23 Electronic Physical Strong online presence - dedicated separate digital pla
Slide 27: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced Website Refresh App Refresh Investment Basket and Goal Planning Multiple options for MFDs to initiate Enabled transactions for One Click solution for MFDs bulk transactions in one go Non-individual Investors of MFDs One Customer View Cross sell / up sell campaigns base
Slide 28: Some of our recent initiatives
Some of our recent initiatives Investor education initiatives 11 years of Cancer Care Weekend Bytes NFO Few Product Literatures Women’s Day 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 650+ Kgs 81% of E-waste transactions are processed in an supported by integrated environment friendly online platform manner in FY23 Kalina Biodiversity Park development across LEED Gold 59,000 sq. ft. located at certified head office the University of Mumbai’s (since 2014)
Slide 31: Inclusive Growth
Inclusive Growth Financial Literacy Health and well being* 575+ 100 3,000+ Flats furnished for Investor Awareness 500 Cancer patients Programmes for women Healthcare Cancer patients provided with Professionals undergoing #BarniSeAzadi launched on financial aid for upskilled treatment at TATA 75th In
Slide 32: Robust Governance practices
Robust Governance practices 50% of Board of Directors are 27% independent of Executive management & 28% 'ESG & CSR' committee of overall work force are women of the Board to drive ESG framework 6 Ethics workshops ISO Certified for employees in partnership with CFA Institute information security proc
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 – Yearly Earnings
Financials Summary – Yearly Earnings (` mm) Particulars YE FY23 YE FY22 Change Income Revenue from Operations 21,668 21,154 2% Other Income 3,158 3,178 -1% Total Income 24,826 24,332 2% Expenses Finance Costs 97 86 13% Fees and Commission Expenses 37 54 -31% Employee Benefit Expenses # 3,127 3,122 0
Slide 36: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (` mm) Particulars Q4 FY23 Q4 FY22 Change Income Revenue from Operations 5,409 5,163 5% Other Income 969 646 50% Total Income 6,378 5,809 10% Expenses Finance Costs 24 20 20% Fees and Commission Expenses 6 15 -60% Employee Benefit Expenses # 719 714 1% Depreci
Slide 37: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (` mm) Particulars Q4 FY23 Q3 FY23 Change Income Revenue from Operations 5,409 5,596 -3% Other Income 969 1,034 -6% Total Income 6,378 6,630 -4% Expenses Finance Costs 24 24 0% Fees and Commission Expenses 6 6 0% Employee Benefit Expenses # 719 790
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 49 13 12 13 14 41 36 35 35 YE FY20 YE FY21 YE FY22 YE FY23 Operating margin (bps of AAUM) for Q1 FY 23, Q2 FY 23, Q3 FY23 and Q4 FY23 are 36, 36, 35 and 35 respectively ____________________ Based on
Slide 40: Statement of Assets and Liabilities
Statement of Assets and Liabilities (` m m ) As at Mar 31, As at Mar 31, Particulars 2023 2022 Assets Financial As s ets 63,108 56,840 Non Financial As s ets 2,258 1,964 Total Assets 65,366 58,804 Liabilities And Equity Liabilities Financial Liabilities 2,419 2,188 Non-Financial Liabilities 1,863 1,
Slide 41: Breakup of Investments
Breakup of Investments Total Investments: ₹ 60,793 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 5.8% Arbitrage, 10.7% Subsidiary, 0.1% Debentures & Tax Free Bonds, 7.0% Mutual Funds, Other Equity, AIFs, etc, 2.9% 90.0% Liquid and Debt, 83.5% Mutual Funds Other
Slide 42: Return On Equity and Dividend Per Share
Return On Equity and Dividend Per Share Return on Equity(1) FY 19 FY 20 FY 21 FY 22 FY 23 35.0% 35.6% 30.1% 27.0% 24.5% Dividend Per Share (₹) (2) and Dividend Payout Ratio (3) 66% 47% 55% 64% 72% 42 48 24 28 34 FY19 FY20 FY21 FY22 FY23 Dividend per share Payout ratio ____________________ (1) Calcul
Slide 43: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You [3 HDFC 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 recommendati on or solicitation of an offer or invitation to purchase any securities (“Securities”) of HDFC Asset Management Company Limited (the “Company”) in India, the Unite
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