Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q4 FY21 Earnings Presentation
37 slides from Hdfc Asset Management's earnings presentation, Apr 30, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation (Revised)
Ref/No/HDFCAMC/SE/2021-22/13 Date – April 30, 2021 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: HDFC Asset Management Company Limited Q4 FY20-21
HDFC Asset Management Company Limited Q4 FY20-21 (For the quarter ended March 31, 2021) 1
Slide 3: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 39% 38% 40% 37% 39% 41% 32.1 31.0 31.4 29.7 3.8 27.0 3.7 3.4 3.2 4.6 22.3 4.5 4.1 2.7 4.8 5.3 2.1 QAAUM (₹ trn) 4.1 10.6 AUM (₹ trn) 11.0 11.0 10.5 8.7 7.8 12.7 12.2 13.0 10.4 11.2 8.3 Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 Ma
Slide 4: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 52% 52% 54% 16% 16% 16% 32.2 32.2 31.0 31.0 93.8 97.3 5.2 89.3 5.0 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 24.7 24.7 14.9 14.8 3.8 11.8 26.0 26.9 20.9 16.2 17.3 12.9 Mar-20 Dec-2
Slide 5: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual MAAUM by Asset class Equity MAAUM by Investor category Equity MAAUM by Location 63% 66% 68% 90% 91% 91% 25% 27% 27% 17.3 12.9 12.9 16.2 11.8 11.8 1.2 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 5.6 1.1 3.4 12.9 5.4 3.2 9.1 9.1 4.8 1.
Slide 6: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 31.2 34.7 37.3 92 86 84 (SIP contribution in ₹ bn) (SIP AUM in ₹ tn) 4.3 4.0 2.4 Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 No. of SIP Accounts (mm) ____________________ Source: AMFI 5
Slide 7: HDFC AMC at a glance
HDFC AMC at a glance Quarterly Average AUM Closing AUM Assets Under ₹ 2,445 bn Assets Under ₹ 2,252 bn Equity-Oriented US$ 33 bn Equity-Oriented US$ 31 bn Management(1) Management(1) 41% ₹ 4,156 bn 59% 43% ₹ 3,955 bn 57% Non-Equity Non-Equity ₹ 1,711 bn US$ 57 bn Oriented ₹ 1,702 bn US$ 54 bn Orient
Slide 8: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 12% YoY 24% 3,895 4,156 4,068 3,955 3,698 3,191 Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2020 Dec-2020 Mar-2021 Mar-2020 Dec-2020 Mar-2021 HDFC MF
Slide 9: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 12% YoY 23% 3,686 3,867 4,124 4,039 3,923 3,179 Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2020 Dec-2020 Mar-2021 Mar-2020 Dec-2020 Mar-20
Slide 10: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 6% YoY 38% 1,574 1,505 1,666 1,605 1,654 1,200 Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2020 Dec-2020 Mar-2021 Mar-2020
Slide 11: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 39% YoY 46% 1,453 1,588 1,553 1,522 1,139 1,046 Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2020 Dec-2020 Mar-2021 Mar-2020 Dec-2020 Mar-2021 HDFC MF,
Slide 12: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -14% YoY -26% 891 821 867 769 788 638 Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Mar-2020 Dec-2020 Mar-2021 Mar-2020 Dec-2020 Mar-2021 HDFC MF, HDFC MF
Slide 13: 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-2021 Others Others Mar-2021 Others Liquid 2.1% 11.7% 2.3% 12.0% Liquid 18.5% Equity 16.1% Equity Equity Liquid Equity Liquid 41.2% 39.6% 13.0% 41.4% 14.4% 43.0% Debt Debt Debt 38.2%
Slide 14: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 22% YoY -5% 1,935 2,228 2,361 9.34 8.99 8.86 57.6% 57.2% 55.3% 53.7% Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 Industry Mar-21 Individual MAAUM (Rs bn) Individual customers prefer
Slide 15: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share Mar-21 Dec-20 Mar-20 15.0% 13.7% 12.8% 13.8% 12.9% 13.4% 12.3% 12.2% 11.7% 7.4% 7.6% 8.3% 7.3% 7.1% 7.0% HDFC MF ICICI Pru SBI MF ABSL MF Axis MF HDFC MF ICICI Pru SBI MF ABSL MF Axis MF HDFC ICICI Pru SBI ABSL MF Nippon MF
Slide 16: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 25.0 27% 25% 23% (Unique Investors in million) 22.8 21.5 20.8 20.0 15.0 10.0 5.6 5.4 5.3 5.0 0.0 Mar-20 Dec-20 Mar-21 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as identif
Slide 17: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 84% 73% 11.8 3.08 11.5 11.3 10.4 9.1 6.8 1.77 Over 5 Years Over 10 Years 4.9 SIP AUM(2): ₹ 567 bn Strong and stable “Order Book” to provide predictable flows Mar-16 Mar-17 Mar-18 Ma
Slide 18: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Mar-2021) Equity-oriented AUM (Mar-2021) HDFC Bank 5.6% HDFC Bank 9.2% Banks 10.0% Direct Banks 14.2% 20.2% Direct 46.5% MFDs 25.9% MFDs National Distributors 41.7% 23.9% National Distributors 17.6% Mar-2020 HDFC Ba
Slide 19: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities #2 Player in B-30 Markets B 30, SBI MF, 14.9% 21.4% Others, 39.4% HDFC MF, 11.7% ICICI Pru MF, 10.9% UTI MF, T 30, 8.3% ABSL, 8.4% 85.1% We serve customers across 97% of all pincodes in India Network of 227 branches with 149 in B-30 cities(2) 65k+
Slide 20: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 18% 33% 31% 64% Digitization Across Functions 82% 67% 69% 36% FY16 FY19 FY20 FY21 Electronic Physical Strong online presence - dedicated separate digital platforms distribut
Slide 21: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced eOTM: Schedule Transactions End to End Digital Solution for Online eOTM registration for Enable investors to schedule their KYC investors: Onboard, hassle free transacting transactions in advance and Transact and Interact receive alerts to transact hdfcfund.com WhatsAp
Slide 22: Financials
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Slide 23: Financials Summary – Year ended Earnings
Financials Summary – Year ended Earnings (₹ mm) Particulars YE FY21 YE FY20 Change Income Revenue from Operations 18,525 20,033 -8% Other Income 3,492 1,402 149% Total Income 22,017 21,435 3% Expenses Finance Costs 90 90 0% Fees and Commission Expenses 57 209 -73% Employee Benefit Expenses# 2,268 2,
Slide 24: Highlights
Highlights INCOME: Investment Management Fees While Average AUM was higher for FY 21 (Vs FY 20), the asset class mix became less remunerative. Other Income Other Income is higher on MTM gains due to interest rate movement and gains on investments in Essel Group NCDs. EXPENSES: Overall cost savings o
Slide 25: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (₹ mm) Particulars Q4 FY21 Q4 FY20 Change Income Revenue from Operations 5,029 4,762 6% Other Income 426 (265) - Total Income 5,455 4,497 21% Expenses Finance Costs 24 22 9% Fees and Commission Expenses 16 16 0% Employee Benefit Expenses# 639 431 48% Depreciat
Slide 26: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (₹ mm) Particulars Q4 FY21 Q3 FY21 Change Income Revenue from Operations 5,029 4,819 4% Other Income 426 1,131 -62% Total Income 5,455 5,950 -8% Expenses Finance Costs 24 22 9% Fees and Commission Expenses 16 14 14% Employee Benefit Expenses# 639 56
Slide 27: NOTES
NOTES 1. The Nomination and Remuneration Committee 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 price
Slide 28: NOTES
NOTES 2. As on April 1, 2020, the Company held certain Non Convertible Debentures (NCDs) that were secured by a pledge of listed equity shares. These NCDs have been classified as financial assets at fair value through profit and loss. Hence any realized gain on their sale/changes in fair value is re
Slide 29: NOTES
NOTES 3. The COVID 19 pandemic and consequent lockdown imposed in March 2020 impacted a whole range of economic activities adversely. The phase wise opening up initiated in the quarter ended June 30, 2020 led to a recovery in varied measures across different sectors of the economy, industries and bu
Slide 30: NOTES
NOTES The Company has assessed the impact of the pandemic on its operations and its assets including the value of its investments and trade receivables as at March 31, 2021. The management does not, at this juncture, believe that the impact on the value of the Company's assets is likely to be materi
Slide 31: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 63 59 54 48 29 22 13 12 37 41 36 34 YE FY18 YE FY19 YE FY20 YE FY21 As per Ind AS Operating margin (bps of AAUM) in FY 21 for Q1, Q2, Q3 and Q4 are 34, 37,38 and 37 respectively. ____________________ Based on
Slide 32: Statement of Assets and Liabilities
Statement of Assets and Liabilities (₹ mm) As at As at Particulars March 31, March 31, 2021 2020 Assets Financial Assets 48,717 40,662 Non Financial Assets 2,230 2,425 Total Assets 50,947 43,087 Liabilities And Equity Liabilities Financial Liabilities 2,300 2,251 Non-Financial Liabilities 885 543 Eq
Slide 33: Breakup of Investments
Breakup of Investments Total Investments: ₹ 47,531 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 0.6% Arbitrage, 15.0% Debentures & Tax Free Bonds, 11.0% Mutual Funds, 87.5% Liquid and Debt, 84.4% Other Equity, AIFs, etc, 1.5% Mutual Funds Other Equity, AIFs, et
Slide 34: Return On Equity and Dividend Per Share
Return On Equity and Dividend Per Share Return on Equity(1) FY 17 FY 18 FY 19 FY 20 FY 21 42.8% 40.3% 35.0% 35.6% 30.1% Return on Equity for FY17 & FY18 was reported under Previous GAAP. FY19 onwards, it is reported under Ind AS Dividend Per Share (2) FY 17 FY 18 FY 19 FY 20 FY 21 ₹ 11.5# ₹ 16 ₹ 24
Slide 35: HDFC AMC Long Term Trends
HDFC AMC Long Term Trends March 2017 March 2018 March 2019 March 2020 March 2021 Total AUM (INR billion) 2,303 2,917 3,437 3,191 3,955 Active Equity (INR billion) 957 1,449 1,643 1,200 1,654 Debt (INR billion) 996 1,055 998 1,046 1,522 Liquid (INR billion) 300 360 745 867 638 PMS & SMA AUM (INR bill
Slide 36: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 35
Slide 37: 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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