Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q4 FY24 Earnings Presentation
36 slides from Hdfc Asset Management's earnings presentation, April 2024
Slide 1: Q4 FY24 Earnings Presentation
Q4 FY24 Earnings Presentation (For the quarter ended March 31, 2024)
Slide 2: HDFC AMC at a Glance
HDFC AMC at a Glance AUM Financials ₹6,073 bn ₹3,975 bn ₹24 bn ₹31,625 mm ₹19,458 mm 35 bps Closing AUM1 Equity-Oriented Closing AUM1 PMS & SMA AUM3 Total Income Operating Margin PAT (FY24) (FY24) (FY24) ₹6,129 bn ₹3,860 bn QAAUM2 Equity-Oriented QAAUM2 Customer base ₹3,650 bn ₹1,368 bn ₹674 bn Acti
Slide 3: Industry
Industry 3
Slide 4: Industry – AUM and Net Sales
Industry – AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 49% 53% 54% 51% 55% 57% 54.1 53.4 49.2 50.8 8.6 8.7 40.5 7.7 39.4 8.1 5.8 4.2 5.4 4.5 AUM (₹ trn) 6.2 10.2 6.0 5.6 10.0 10.0 10.2 4.3 8.8 9.2 25.9 29.4 30.4 19.9 28.2 20.0 Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Mar-23 to Mar-2
Slide 5: Industry - MAAUM by Investor Category & Location
Industry - MAAUM by Investor Category & Location Overall MAAUM by Overall MAAUM by Individual Folios Investor Category Location 58% 60% 61% 17% 18% 18% 176.8 163.9 55.0 55.0 144.9 51.1 51.1 9.8 9.1 21.7 40.0 40.0 20.4 MAAUM (₹ trn) MAAUM (₹ trn) 6.8 16.8 45.2 42.0 33.3 33.2 30.7 23.3 Mar-23 Dec-23 M
Slide 6: Industry - MAAUM by Investor Category & Location
Industry - MAAUM by Investor Category & Location Individual MAAUM by Asset Equity MAAUM by Investor Equity MAAUM by Class Category Location 77% 81% 82% 90% 91% 91% 27% 27% 27% 33.3 30.7 30.0 30.0 6.1 27.4 2.8 27.4 5.9 2.6 8.2 23.3 7.4 19.8 MAAUM (₹ trn) MAAUM (₹ trn) MAAUM (₹ trn) 5.4 19.8 1.9 5.3 2
Slide 7: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 63.6 76.4 84.0 193 176 10.7 10.0 143 SIP contribution (₹ bn) 6.8 SIP AUM (₹ tn) Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 No. of SIP Accounts (mm) 7 Source: AMFI
Slide 8: HDFC AMC
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Slide 9: Total AUM & Market Share
Total AUM & Market Share Quarterly Average AUM Closing AUM 11.1% 11.2% 11.3% 11.1% 11.3% 11.4% YoY 36% (₹ bn) (₹ bn) YoY 39% QoQ 11% QoQ 6% 6,129 6,073 5,515 5,750 4,498 4,367 Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Market Share Market Share 9 Source: Internal, AMFI
Slide 10: Total AUM & Market Share (Ex ETFs)
Total AUM & Market Share (Ex ETFs) Quarterly Average AUM Closing AUM 12.5% 12.5% 12.7% 12.5% 12.7% 12.8% (₹ bn) (₹ bn) YoY 36% YoY 39% QoQ 11% QoQ 6% 6,019 5,958 5,413 5,640 4,422 4,283 Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Market Share Market Share 10 Source: Internal, AMFI
Slide 11: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM 12.0% 12.6% 12.8% 11.9% 12.7% 12.8% (₹ bn) (₹ bn) YoY 58% YoY 62% QoQ 15% QoQ 8% 3,650 3,754 3,466 3,166 2,317 2,322 Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Market Share Market Share 11 Source: Internal, AMFI
Slide 12: Debt AUM & Market Share
Debt AUM & Market Share Quarterly Average AUM Closing AUM 13.3% 13.2% 13.4% 13.3% 13.4% 13.4% (₹ bn) (₹ bn) YoY 16% YoY 9% QoQ 1% QoQ 0% 1,353 1,368 1,340 1,341 1,179 1,226 Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Market Share Market Share 12 Source: Internal, AMFI
Slide 13: Liquid AUM & Market Share
Liquid AUM & Market Share Quarterly Average AUM Closing AUM 13.1% 11.5% 11.6% 12.8% 12.1% 12.7% (₹ bn) (₹ bn) YoY (8)% YoY (1)% QoQ 8% QoQ (2)% 730 674 625 548 550 540 Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Market Share Market Share 13 Source: Internal, AMFI
Slide 14: AUM by Segment – HDFC MF & Industry
AUM by Segment – HDFC MF & Industry Quarterly Average AUM Mar-23 Dec-23 Mar-24 HDFC MF Industry HDFC MF Industry HDFC MF Industry Equity 54.4% 49.1% 60.6% 52.5% 63.0% 54.3% Debt 26.2% 21.8% 24.5% 20.8% 22.3% 18.9% Liquid 16.2% 13.7% 11.3% 11.1% 11.0% 10.8% Others 3.2% 15.3% 3.5% 15.6% 3.7% 16.0% Clo
Slide 15: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Individual MAAUM (% of Total) Number of Live Individual Accounts (mm) YoY 48% YoY 44% 2,992 4,070 4,415 16.25 70.9% 70.8% 14.75 67.2% 60.5% 11.27 Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Industry Mar-24 Individual MAAUM (Rs bn) Individual customers prefer equ
Slide 16: Amongst preferred choice of Individual Investors
Amongst preferred choice of Individual Investors Individual Assets Market Share Mar-23 Dec-23 Mar-24 13.0% 13.0% 12.9% 13.3% 13.2% 13.3% 13.0% 12.8% 12.9% 7.0% 6.9% 7.7% 7.7% 6.9% 6.8% MF #1 MF #2 HDFC MF #4 MF #5 HDFC MF #2 MF #3 MF #4 MF #5 HDFC MF #2 MF #3 MF #4 MF #5 MF MF MF 16 Source: AMFI , b
Slide 17: Unique Investors – HDFC AMC vs MF Industry
Unique Investors – HDFC AMC vs MF Industry Unique Investors 18% 21% 22% 44.6 42.0 (mm) 37.7 8.7 9.6 6.6 Mar-23 Dec-23 Mar-24 HDFC Mutual Fund Mutual Fund Industry HDFC MF penetration in Mutual Fund Industry 17 Source: CAMS. Note: Unique Investors as identified by PANs/PEKRNs of all unit holders & Gu
Slide 18: Systematic Transactions
Systematic Transactions Systematic Transactions(1) (₹ bn) Long Tenure SIP Book(2) 7.74 87% 80% 29.3 26.3 17.1 1.77 Over 5 Years Over 10 Years 11.8 12.3 11.5 11.3 10.4 SIP AUM(3): ₹ 1,398 bn 6.8 4.9 Strong and stable “Order Book” to provide predictable flows Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Slide 19: Multi-channel Distribution Network
Multi-channel Distribution Network Total AUM Equity-oriented AUM Mar-2024 Mar-2024 HDFC Bank 6.1% HDFC Bank 7.6% Banks 11.2% Banks 13.1% Direct Direct 25.0% 38.4% MFDs 29.1% MFDs National 37.0% Distributors National Distributors 24.9% 21.3% Dec-2023 Mar-2023 Dec-2023 Mar-2023 HDFC Bank 6.0% HDFC Ban
Slide 20: Geographic Spread
Geographic Spread Total MAAUM1 by T30 and B30 Cities #2 Player in B-30 Markets1 B 30 MF #1 19.1% 20.5% Others 40.5% HDFC MF, 12.1% MF #3 11.4% MF #5 MF #4 6.7% 8.8% T 30 80.9% We serve customers across ~99% of all pincodes in India Network of 254 branches with 174 in B-30 locations(2) 85k+ empaneled
Slide 21: Our Digital Stack
Our Digital Stack Engagement & Investors Partners Support Channels Electronic and Physical Transaction as % of Total Transactions HDFC MFOnline HDFC Mutual Partners Co-browsing Services Fund 18% 19% 10% 31% 24% Partners Portal Callback Services Investor Portal 82% 81% 90% 69% 76% Admin Portal Agent
Slide 22: Embedding ESG Principles
Embedding ESG Principles Inclusive Health & Environment Growth Safety ESG Mission To create sustainable wealth for Human every stakeholder by focusing on Diversity Rights People, Planet and Prosperity Ethics, Well Being Transparency Stakeholders of & Employees Accountability Adopted CFA Institute’s
Slide 23: ESG Highlights
ESG Highlights 27% of Executive 11 Ethics management & workshops 1,900+ Kgs 90% 28% of Work force for employees1 Transactions are 'ESG & CSR' committee 56% ~ 64,500 of E-waste processed in an are women environment friendly manner supported by integrated of the Board of Board of Directors are Employe
Slide 24: Financials
Financials 24
Slide 25: Financials Summary – Yearly Earnings
Financials Summary – Yearly Earnings (` mm) Particulars YE FY24 YE FY23 Change Income Revenue from Operations 25,844 21,668 19% Other Income 5,781 3,158 83% Total Income 31,625 24,826 27% Expenses Finance Costs 91 97 -6% Fees and Commission Expenses 25 37 -32% Employee Benefit Expenses # 3,535 3,127
Slide 26: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (` mm) Particulars Q4 FY24 Q4 FY23 Change Income Revenue from Operations 6,955 5,409 29% Other I ncome 1,555 969 60% Total Income 8,510 6,378 33% Expenses Finance Costs 23 24 -4% Fees and Commission Expenses 7 6 17% Employee Benefit Expenses # 865 719 20% Depr
Slide 27: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (` mm) Particulars Q4 FY24 Q3 FY24 Change Income Revenue from Operations 6,955 6,713 4% Other Income 1,555 1,424 9% Total Income 8,510 8,137 5% Expenses Finance Costs 23 22 5% Fees and Commission Expenses 7 4 75% Employee Benefit Expenses # 865 903
Slide 28: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 48 48 49 47 12 13 14 12 36 35 35 35 YE FY21 YE FY22 YE FY23 YE FY24 Operating margin (bps of AAUM) for Q1 FY 24 ,Q2 FY 24, Q3 FY 24 and Q4 FY 24 are 34, 35, 35 and 34 respectively ____________________ Based o
Slide 29: Statement of Assets and Liabilities
Statement of Assets and Liabilities (` m m ) As at Mar 31, As at Mar 31, Particulars 2024 2023 Assets Financial As s ets 73,290 63,108 Non-Financial As s ets 2,286 2,258 Total Assets 75,576 65,366 Liabilities And Equity Liabilities Financial Liabilities 2,456 2,404 Non-Financial Liabilities 2,330 1,
Slide 30: Breakup of Total Investments
Breakup of Total Investments Total Investments: ₹ 71,901 million Breakdown of Mutual Fund Breakdown of Total Investments Investments Equity, 7.2% Arbitrage, 7.8% Subsidiary, 0.5% Debentures & Tax Free Bonds, 3.8% Other Equity, Mutual Funds, AIFs, etc, 3.2% 92.5% Liquid and Debt, 85.0% Mutual Funds O
Slide 31: Return On Equity and Dividend Per Share
Return On Equity and Dividend Per Share Return on Equity(1) FY 20 FY 21 FY 22 FY 23 FY 24 35.6% 30.1% 27.0% 24.5% 29.5% Dividend Per Share (₹) (2) and Dividend Payout Ratio 77% 47% 55% 64% 72% 70 42 48 28 34 FY20 FY21 FY22 FY23 FY24 Dividend per share Payout ratio ____________________ (1) Calculated
Slide 32: NOTES
NOTES 1. Under Employees Stock Option Scheme - 2020 ('ESOS - 2020'), apart from s tock options granted i n the pas t year(s ), the Nomination and Remuneration Committee (NRC) of the Board of Directors of the Company at its meeting held: i ) On April 25, 2023 had approved a further grant of 10,50,000
Slide 33: NOTES
NOTES 2. A Whol l y Owned Subs i di a ry ('WOS') of the Compa ny na mel y 'HDFC AMC Interna ti ona l (IFSC) Li mi ted', l oca ted i n Guja ra t Interna ti ona l Fi na nce Tec-Ci ty (GIFT Ci ty) ha d been i ncorpora ted effecti ve Ma y 27, 2022. The Compa ny ha s di s cl os ed extra ct of onl y s ta
Slide 34: HDFC AMC Mission & Vision
HDFC AMC Mission & Vision Our Mission To be the wealth creator for every Indian Our Vision To be the most respected asset manager in the world 34
Slide 35: Thank you
Thank you
Slide 36: 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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