Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q4 FY19 Earnings Presentation
30 slides from Hdfc Asset Management's earnings presentation, Apr 26, 2019
Slide 1: Cover letter: Outcome of Board Meeting
TUAL FUND BHAROSA APNO KA Ref/No/HDFCAMC/SE/2019-20/11 Date — April 26, 2019 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 K
Slide 2: Press Release: HDFC AMC FY18-19 net profit up 31%
Press Release 26 April, 2019 HDFC AMC FY18-19 net profit at ₹9,306 million, a year on year increase of 31%. Board declares final dividend of ₹12 per share (subject to shareholders approval). Total dividend for FY’19 at ₹24 per share. AUM rises to ₹3,439 billion, a year on year increase of 18%. HDFC
Slide 3: Corporate Highlights
Mumbai, 26 April, 2019: HDFC Asset Management Company Limited today reported its financial performance for the quarter/ financial year ended March 31, 2019. Highlights of the unaudited financial results as compared to the previous period are: CORPORATE HIGHLIGHTS • Total AUM of ₹3,439 billion as of
Slide 4: Background and Financial Highlights for the Quarter
BACKGROUND SEBI Circular dated 22nd October 2018 has prohibited payment of upfront commission & mandated a full trail model for distributor commission. It has further mandated that all scheme related expenses, (barring a few minor exceptions) including distributor commission, shall have to be paid b
Slide 5: About HDFC AMC
About HDFC AMC HDFC Asset Management Company Limited (HDFC AMC) is Investment Manager to HDFC Mutual Fund, 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 Fund by S
Slide 6: HDFC Asset Management Company Limited Q4 FY18-19
HDFC Asset Management Company Limited Q4 FY18-19 1
Slide 7: Industry - AUM and Net Sales
Industry - AUM and Net Sales 25% 34% 35% 36% 43% 42% 43% 23.8 22.9 1.9 21.4 1.7 0.8 Mar-14 to Mar-19 CAGR: Overall: 24%; Equity: 39%; Debt: 9%; Liquid: 27% 17.5 4.4 3.4 4.5 0.5 3.1 12.3 8.0 7.3 10.8 7.0 0.2 AUM (₹ trn) 0.2 2.0 8.3 1.6 7.6 0.2 1.3 5.8 5.3 4.7 9.2 9.7 10.2 6.3 3.7 4.3 2.1 Mar-14 Mar-1
Slide 8: Individual / Institutional MAAUM, SIP Flows, B-15/B30
Individual / Institutional MAAUM, SIP Flows, B-15/B30 MAAUM of Individual Investors(1)(2)(3) SIP Flows(1) MAAUM of B-15/B-30(1)(2) 39.2 41.4 47.2 54.8 70.9 79.8 82.1 10.1 13.5 21.1 25.4 26.2 16% 16% 16% 17% 19% 15% 15% B15 B30 (MAAUM in ₹ bn) (SIP contribution in ₹ bn) 80 81 (MAAUM ₹ trn) 20,785 71
Slide 9: HDFC AMC at a glance
HDFC AMC at a glance 48% Equity-Oriented Assets Assets Under Management(1) 52% Non-Equity Oriented Assets ₹ 1,653 bn ₹ 1,786 bn ₹ 3,439 bn US$ 23.9 bn US$ 25.8 bn US$ 49.7 bn 9.1 mm ₹ 97.5 bn Live Accounts(1) PMS & SMA AUM(1) (3) 210 Branches(1)(2); 75k+ Empaneled 1150 Employees(1) Distribution Part
Slide 10: Total AUM and Market Share
Total AUM and Market Share Total AUM(1) Market Share in Total AUM(2) ₹ billion HDFC MF, Mar-2019 14.5% YoY 18% 3,439 3,291 2,920 Dec-2018 HDFC MF, Mar-2018 2,306 HDFC MF, 14.4% 13.7% 1,656 1,506 1,089 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Dec-18 Mar-19 ____________________ (1) Source: Internal 5 (2) So
Slide 11: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share #1 Market Share in Actively Managed Equity-oriented Actively Managed Equity-oriented AUM(1) AUM(2) ₹ billion HDFC MF YoY 13% Mar-2019 16.2% 1,643 1,535 1,449 957 Dec-2018 Mar-2018 HDFC MF HDFC MF 675 629 16.0% 16.8% 406 Mar-14 Mar-15 Mar-16 Mar-1
Slide 12: AUM by Segment – HDFC AMC and Industry
AUM by Segment – HDFC AMC and Industry HDFC AMC MF AUM by Segment (1)(3) Industry AUM by Segment(2)(3) Mar-2019 Others Mar-2019 1.3% Others Liquid 8.1% 21.6% Liquid 18.3% Equity Equity 42.9% 48.1% Debt Debt 29.0% 30.7% Dec-2018 Mar-2018 Dec-2018 Mar-2018 Others Others Others Others 1.3% 0.3% 7.5% 3.
Slide 13: Individual Investors – no of Accounts & MAAUM
Individual Investors – no of Accounts & MAAUM Number of Live Individual Accounts (in millions) (1) Individual MAAUM % of Total(1) YoY 16% YoY 12% 624 931 945 1,350 1,863 2,033 2,167 8.86 9.03 Mar-14 to Mar-19 CAGR: 28% 63.0% 62.2% 61.8% 8.05 56.3% 56.0% 54.6% 55.1% 52.8% 6.15 5.55 5.14 4.44 Mar-14 M
Slide 14: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share (Mar-19) Individual Assets Market Share (Dec-18) Individual Assets Market Share (Mar-18) 15.4% 15.7% 15.4% 13.9% 14.6% 13.7% 9.7% 9.5% 9.4% 9.3% 9.9% 9.6% 9.3% 9.2% 8.6% HDFC ICICI Pru SBI Reliance ABSL HDFC ICICI Pru ABSL
Slide 15: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 25.0 27% 27% 28% (Unique Investors in million) 20.0 19.1 19.3 17.1 15.0 10.0 5.2 5.3 4.7 5.0 0.0 Mar’18 Dec'18 Mar'19 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as identif
Slide 16: Systematic Transactions
Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Strong Growth in Systematic Transactions (₹ mm) Long Tenure SIP Book(1) 3.38 78.4% 11,689 11,816 11,531 66.0% 6,768 Over 5 Years Over 10 Years 4,745 4,854 1.23 3,082 Strong and growing “Order Book” to provide predictab
Slide 17: Multi-channel Distribution Network
Multi-channel Distribution Network Well Diversified Distribution Channel Total AUM (Mar-19) Equity-oriented AUM (Mar-19) HDFC Bank 8.6% HDFC Bank 10.6% Banks, 14.2% Direct Direct 18.2% Banks, 16.6% 38.3% IFAs 27.5% National Distributors IFAs 24.6% National Distributors 40.6% 20.0% Mar-2018 Dec-2018
Slide 18: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities(1) #2 Player in B-30 Markets(1) B 30, SBI MF, 14.9% 18.0% Others, 36.5% HDFC MF, 12.2% Reliance UTI MF, MF, 11.9% 10.6% ICICI Pru MF, T 30, 10.9% 85.1% Network of 210 branches with 134 in B-30 cities(2) c. 75k+ empaneled distribution partners _____
Slide 19: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 32.8% 30.4% 41.5% 69.9% Digitization Across Functions 67.2% 69.6% 58.5% 30.1% FY15 FY19 Q4FY18 Q4FY19 Electronic Physical Strong online presence - dedicated separate digital
Slide 20: Financials
Financials 15
Slide 21: Ind AS Transition
Ind AS Transition ▪ Adoption of Indian Accounting Standards (Ind AS) with effect from 1st April 2018. ▪ Results of Q4 FY19 & YE FY19 are prepared as per Ind AS requirements. ▪ Accordingly figures for Q4 FY18 & YE FY18 have been restated. Key Changes Remarks Investments Investments are fair valued th
Slide 22: Financials Summary – Year ended Earnings
Financials Summary – Year ended Earnings (Rs. mm) Particulars YE FY19 YE FY18 Change Revenue from Operations 19,152 17,568 9% Other Income 1,816 1,130 61% Total Revenue 20,968 18,698 12% Expenses Fees and Commission Expenses 2,403 3,270 -27% Impairment on Financial Instruments 400 - - Employee Benef
Slide 23: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (Rs. mm) Particulars Q4 FY19 Q4 FY18 Change Revenue from Operations 4,865 4,687 4% Other Income 610 313 95% Total Revenue 5,475 5,000 10% Expenses Fees and Commission Expenses 299 1,002 -70% Impairment on Financial Instruments 98 - - Employee Benefit Expenses
Slide 24: PAT Reconciliation - Previous GAAP Vs Ind AS – Q4 FY18
PAT Reconciliation- Previous GAAP Vs Ind AS – Q4 FY 18 (Rs. mm) Particulars Q4 FY 18 Net profit after tax as reported under Previous GAAP 2,261 Adjustment increasing / (decreasing) net profit after tax as reported under Previous GAAP (net of tax): Fair value change in investments (503) Fair valuatio
Slide 25: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses PBT&OI (bps of AAUM) 63 63 65 64 59 53 29 22 29 33 44 34 34 37 34 31 21 19 YE FY18 YE FY19 HDFC AMC Reliance AMC ICICI Pru AMC ABSL As per Ind AS AMC FY18 As per previous GAAP ____________________ Based on internal computations 20
Slide 26: Statement of Assets and Liabilities
Statement of Assets and Liabilities (Rs. mm) As at As at Particulars March 31, March 31, 2019 2018 Assets Financial Assets 30,978 21,851 Non Financial Assets 1,260 2,870 Total Assets 32,238 24,721 Liabilities And Equity Liabilities Financial Liabilities 1,130 1,782 Non-Financial Liabilities 400 400
Slide 27: ROE and Dividend Payout Ratio
ROE and Dividend Payout Ratio Return on Equity(1) FY15 FY16 FY17 FY18 FY19 41.1% 42.1% 42.8% 40.3% 35.0% Return on Equity has reduced in FY 19 due to substantial increase in average networth. Return on Equity from FY15 to FY18 was under Previous GAAP whereas for FY19, it is under Ind AS Consistently
Slide 28: Financials Summary – Historical Trends
Financials Summary – Historical Trends Figures In Rs mm Profit before tax Operating Profit 13,747 11,931 10,625 9,550 7,998 6,919 5,877 6,005 4,282 5,459 5,487 4,727 FY14 FY15 FY16 FY17 FY18 FY19 FY14 FY15 FY16 FY17 FY18 FY19 Profit after tax 9,306 7,216 5,502 3,250 3,925 4,074 FY14 FY15 FY16 FY17 F
Slide 29: Thank You
ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 24
Slide 30: 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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