Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q3 FY24 Earnings Presentation
42 slides from Hdfc Asset Management's earnings presentation, Jan 11, 2024
Slide 1: Exchange filing cover letter: Outcome of Board Meeting
Ref/No/HDFCAMC/SE/2023-24/85 Date – January 11, 2024 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: Q3 FY24 Earnings Presentation
Q3 FY24 Earnings Presentation (For the quarter ended December 31, 2023)
Slide 3: HDFC AMC at a Glance
HDFC AMC at a Glance AUM Financials ₹5,750 bn ₹3,666 bn ₹18 bn ₹8,137 mm ₹4,896 mm 35 bps Closing AUM1 Equity-Oriented Closing AUM1 PMS & SMA AUM3 Operating Margin Total Income PAT (Q3 FY24) (Q3 FY24) (Q3 FY24) ₹5,515 bn ₹3,344 bn QAAUM2 Equity-Oriented QAAUM2 Customer base ₹3,166 bn ₹1,353 bn ₹625
Slide 4: Industry
Industry 3
Slide 5: Industry – AUM and Net Sales
Industry – AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 50% 51% 53% 50% 53% 55% 47.0 49.2 50.8 46.6 40.3 7.7 39.9 8.1 7.1 7.2 6.1 5.8 5.4 4.5 AUM (₹ trn) 6.1 4.6 5.5 10.2 5.0 10.0 10.3 10.1 8.6 8.6 23.8 25.9 24.8 28.2 19.9 20.1 Dec-22 Sep-23 Dec-23 Dec-22 Sep-23 Dec-23 Dec-22 to Dec-2
Slide 6: Industry - MAAUM by Investor Category & Location
Industry - MAAUM by Investor Category & Location Overall MAAUM by Overall MAAUM by Individual Folios Investor Category Location 58% 59% 59% 17% 18% 18% 160.8 156.2 140.3 47.8 48.7 47.8 48.7 8.6 40.8 40.8 8.4 19.7 19.9 7.0 MAAUM (₹ trn) MAAUM (₹ trn) 17.2 39.4 40.2 33.8 28.1 28.9 23.6 Dec-22 Sep-23 N
Slide 7: 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 78% 79% 80% 91% 91% 91% 27% 27% 27% 24.7 25.4 25.4 28.1 28.9 24.7 2.3 2.4 23.6 5.9 20.2 20.2 6.9 5.8 6.7 1.9 MAAUM (₹ trn) MAAUM (₹ trn) MAAUM (₹ trn) 5.3 5.4 2
Slide 8: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 61.2 71.3 76.4 176 160 10.0 8.7 136 6.7 SIP contribution (₹ bn) SIP AUM (₹ tn) Dec-22 Sep-23 Dec-23 Dec-22 Sep-23 Dec-23 No. of SIP Accounts (mm) 7 Source: AMFI
Slide 9: HDFC AMC
HDFC AMC 8
Slide 10: Total AUM & Market Share
Total AUM & Market Share Quarterly Average AUM Closing AUM 11.0% 11.2% 11.2% 11.2% 11.2% 11.3% YoY 24% (₹ bn) (₹ bn) YoY 28% 5,247 5,515 5,750 5,229 4,448 4,481 Dec-22 Sep-23 Dec-23 Dec-22 Sep-23 Dec-23 Market Share Market Share 9 Source: Internal, AMFI
Slide 11: Total AUM & Market Share (Ex ETFs)
Total AUM & Market Share (Ex ETFs) Quarterly Average AUM Closing AUM 12.5% 12.5% 12.5% 12.7% 12.6% 12.7% (₹ bn) (₹ bn) YoY 23% YoY 28% 5,150 5,413 5,640 5,132 4,389 4,412 Dec-22 Sep-23 Dec-23 Dec-22 Sep-23 Dec-23 Market Share Market Share 10 Source: Internal, AMFI
Slide 12: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM 11.7% 12.4% 12.6% 11.8% 12.5% 12.7% (₹ bn) (₹ bn) YoY 40% YoY 50% 3,166 3,466 2,861 3,002 2,269 2,314 Dec-22 Sep-23 Dec-23 Dec-22 Sep-23 Dec-23 Market Share Market Share 11 Source: Internal, AMFI
Slide 13: Debt AUM & Market Share
Debt AUM & Market Share Quarterly Average AUM Closing AUM 13.5% 13.3% 13.2% 13.5% 13.3% 13.4% (₹ bn) (₹ bn) YoY 16% YoY 15% 1,369 1,353 1,338 1,340 1,166 1,167 Dec-22 Sep-23 Dec-23 Dec-22 Sep-23 Dec-23 Market Share Market Share 12 Source: Internal, AMFI
Slide 14: Liquid AUM & Market Share
Liquid AUM & Market Share Quarterly Average AUM Closing AUM 13.7% 11.8% 11.5% 14.9% 12.1% 12.1% (₹ bn) (₹ bn) YoY (18)% YoY (26)% 760 747 686 625 557 550 Dec-22 Sep-23 Dec-23 Dec-22 Sep-23 Dec-23 Market Share Market Share 13 Source: Internal, AMFI
Slide 15: AUM by Segment – HDFC MF & Industry
AUM by Segment – HDFC MF & Industry Quarterly Average AUM Dec-22 Sep-23 Dec-23 HDFC MF Industry HDFC MF Industry HDFC MF Industry Equity 53.8% 49.5% 57.6% 50.6% 60.6% 52.5% Debt 26.2% 21.5% 26.1% 21.9% 24.5% 20.8% Liquid 17.1% 13.7% 13.1% 12.3% 11.3% 11.1% Other 2.9% 15.3% 3.2% 15.1% 3.5% 15.6% Clos
Slide 16: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Individual MAAUM (% of Total) Number of Live Individual Accounts (mm) YoY 26% YoY 38% 3,014 3,680 3,808 14.75 13.47 69.0% 70.0% 65.9% 10.67 59.2% Dec-22 Sep-23 Dec-23 Dec-22 Sep-23 Nov-23 Industry Nov-23 Individual MAAUM (Rs bn) Data for November-23 Individual
Slide 17: Amongst preferred choice of Individual Investors
Amongst preferred choice of Individual Investors Individual Assets Market Share Dec-22 Sep-23 Nov-23 12.9% 12.8% 12.8% 13.2% 13.1% 13.1% 13.1% 13.0% 12.9% 7.2% 6.9% 7.5% 7.6% 6.8% 6.9% 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 Data for November-2
Slide 18: Unique Investors – HDFC AMC vs MF Industry
Unique Investors – HDFC AMC vs MF Industry Unique Investors 17% 20% 21% 42.0 40.4 36.7 (mm) 7.9 8.7 6.3 Dec-22 Sep-23 Dec-23 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 19: Systematic Transactions
Systematic Transactions Systematic Transactions(1) (₹ bn) Long Tenure SIP Book(2) 6.81 87% 26.3 79% 22.4 17.1 15.7 1.77 12.3 Over 5 Years Over 10 Years 11.5 11.8 11.3 10.4 SIP AUM(3): ₹ 1,288 bn 6.8 4.9 Strong and stable “Order Book” to provide predictable flows Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Ma
Slide 20: Multi-channel Distribution Network
Multi-channel Distribution Network Total AUM Equity-oriented AUM Dec-2023 Dec-2023 HDFC Bank 6.0% HDFC Bank 7.7% Banks 11.0% Direct Banks 13.1% Direct 24.3% 38.8% MFDs 29.3% MFDs 37.8% National Distributors National Distributors 24.8% 20.9% Sep-2023 Dec-2022 Sep-2023 Dec-2022 HDFC Bank 5.9% HDFC Ban
Slide 21: Geographic Spread
Geographic Spread Total MAAUM1 by T30 and B30 Cities #2 Player in B-30 Markets1 B 30 MF #1 18.8% 20.8% Others 40.2% HDFC MF, 11.9% MF #3 11.3% MF #5 MF #4 7.2% 8.6% T 30 81.2% We serve customers across ~99% of all pincodes in India Network of 253 branches with 173 in B-30 cities(2) Data for November
Slide 22: New Branches – Inaugurated on 2nd January 2024
New Branches – Inaugurated on 2nd January 2024 21
Slide 23: Our Digital Stack
Our Digital Stack Engagement & Investors Partners Support Channels Electronic and Physical Transaction HDFC MFOnline as % of Total Transactions HDFC Mutual Partners Fund Co-browsing Services 18% 19% 9% 31% 24% Partners Portal Callback Services Investor Portal Admin Portal 82% 81% 91% Agent HelpDesk
Slide 24: 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 25: ESG Highlights
ESG Highlights 27% of Executive 8 Ethics workshops management & for employees* 850+ 'ESG & CSR' committee 63% 28% of Work force Investor Awareness Programmes under are women 24,300+ #BarniSeAzadi campaign launched on of the Board of Board of Directors are Employee training drives ESG framework Indep
Slide 26: Financials
Financials 25
Slide 27: Financials Summary – Nine Months Earnings
Financials Summary – Nine Months Earnings (` mm) Particulars 9ME FY24 9ME FY23 Change Income Revenue from Operations 18,889 16,259 16% Other Income 4,226 2,189 93% Total Income 23,115 18,448 25% Expenses Finance Costs 68 73 -7% Fees and Commission Expenses 18 31 -42% Employee Benefit Expenses # 2,67
Slide 28: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (` mm) Particulars Q3 FY24 Q3 FY23 Change Income Revenue from Operations 6,713 5,596 20% Other Income 1,424 1,034 38% Total Income 8,137 6,630 23% Expenses Finance Costs 22 24 -8% Fees and Commission Expenses 4 6 -33% Employee Benefit Expenses # 903 790 14% De
Slide 29: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (` mm) Particulars Q3 FY24 Q2 FY24 Change Income Revenue from Operations 6,713 6,431 4% Other Income 1,424 1,222 17% Total Income 8,137 7,653 6% Expenses Finance Costs 22 23 -4% Fees and Commission Expenses 4 4 - Employee Benefit Expenses # 903 929
Slide 30: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 48 48 49 48 12 13 14 13 36 35 35 35 YE FY21 YE FY22 YE FY23 9ME FY24 Operating margin (bps of AAUM) for Q1 FY 24 ,Q2 FY 24 and Q3 FY 24 are 34, 35 and 35 respectively ____________________ Based on internal co
Slide 31: Statement of Assets and Liabilities
Statement of Assets and Liabilities (` m m ) As at Dec 31, As at Mar 31, Particulars 2023 2023 Assets Financial As s ets 67,625 63,108 Non-Financial As s ets 2,027 2,258 Total Assets 69,652 65,366 Liabilities And Equity Liabilities Financial Liabilities 2,317 2,419 Non-Financial Liabilities 2,060 1,
Slide 32: Breakup of Total Investments
Breakup of Total Investments Total Investments: ₹ 64,695 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 7.7% Arbitrage, 2.2% Subsidiary, 0.6% Debentures & Tax Free Bonds, 6.5% Other Equity, Mutual Funds, 89.8% Liquid and Debt, 90.1% AIFs, etc, 3.1% Mutual Funds O
Slide 33: 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 34: NOTES
NOTES 1. Under Empl oyees Stock Opti on Scheme - 2020 ('ESOS - 2020'), a pa rt from s tock opti ons gra nted i n the pa s t yea r(s ), the Nomi na ti on a nd Remunera ti on Commi ttee (NRC) of the Boa rd of Di rectors of the Compa ny a t i ts meeti ng hel d on Apri l 25, 2023 ha d a pproved a furthe
Slide 35: NOTES
NOTES 3. HDFC Bank Limited (‘HDFC Bank’) is Holding Company and Promoter of HDFC Asset Management Company Limited effective July 01, 2023 pursuant to the Composite scheme of amalgamation of: (i) HDFC Investments Limited and HDFC Holdings Limited, wholly owned subsidiaries of Housing Development Fina
Slide 36: 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 35
Slide 37: Thank you
Thank you
Slide 38: 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
Slide 39: Press Release: HDFC AMC net profit for the Quarter ended December 31, 2023
Press Release January 11, 2024 HDFC AMC net profit for the Quarter ended December 31, 2023 at ₹4,896 million, an increase of 33% over Quarter ended December 31, 2022. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period ended December 31, 2023. • Amongst India’s
Slide 40: Press Release: Corporate Highlights
Mumbai- January 11, 2024: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended December 31, 2023. CORPORATE HIGHLIGHTS • QAAUM of ₹5,515 billion for the quarter ended December 31, 2023 compared to ₹4,448 billion for the quarter ended December 31, 2022,
Slide 41: Financial Highlights for the Quarter Ended December 31, 2023
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED DECEMBER 31, 2023 • The Operating Profit for the quarter ended December 31, 2023 was ₹4,961 million as compared to ₹3,974 million for the quarter ended December 31, 2022. • Profit before tax for the quarter ended December 31, 2023 was ₹6,385 million as comp
Slide 42: About HDFC AMC
About HDFC AMC Incorporated in 1999, HDFC Asset Management Company Limited (HDFC AMC) is Investment Manager to HDFC Mutual Fund, one of the largest mutual funds in the country with closing AUM of Rs 5.75 trillion as on December 31, 2023. The Company offers a comprehensive suite of savings and invest
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