Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q1 FY2020-21 Earnings Presentation
29 slides from Hdfc Asset Management's earnings presentation, Jul 23, 2020
Slide 1: Cover letter to stock exchanges: outcome of board meeting
-i HDFC MUTUAL FUND BHAROSA APNO KA Ref/No/HDFCAMC/SE/2020-21 /41 Date - July 23, 2020 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C/I, Block G, Sir PJ Towers, Sandra Kurla Complex, Bandra (East) Dalal Street, Mumbai - 40005 1 Mumbai - 400001 Kind Attn: Head - Listing D
Slide 2: HDFC Asset Management Company Limited Q1 FY20-21
HDFC Asset Management Company Limited Q1 FY20-21 1
Slide 3: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 40% 39% 37% 43% 37% 38% 25.5 27.0 25.5 24.6 24.3 2.7 2.6 2.0 2.4 22.3 5.3 2.1 5.4 4.1 2.1 4.9 5.5 4.1 QAAUM (₹ trn) 7.8 8.7 7.6 8.1 AUM (₹ trn) 7.8 7.8 10.3 10.4 9.0 10.5 9.8 8.3 Jun-19 Mar-20 Jun-20 Jun-19 Mar-20 Jun-20 Jun-19 t
Slide 4: Individual / Institutional MAAUM, SIP Flows, B30
Individual / Institutional MAAUM, SIP Flows, B30 MAAUM by Investor category(1)(2)(3) SIP Flows(1) MAAUM of B-30(1)(2) 83.4 89.3 91.1 10.1 13.5 21.1 26.2 27.4 31.2 32.3 15% 16% 15% (MAAUM in ₹ tn) (SIP contribution in ₹ bn) 86 22.1 (MAAUM ₹ trn) 21.8 81 81 79 20.9 71 11.8 12.9 (46%) 11.8 (49%) (48%)
Slide 5: HDFC AMC at a glance
HDFC AMC at a glance Quarterly Average AUM Closing AUM Assets Under ₹ 2,243 bn Assets Under ₹ 2,167 bn Equity-Oriented US$ 30 bn Equity-Oriented US$ 29 bn Management(1) Management(1) 37% ₹ 3,562 bn 63% 39% ₹ 3,575 bn 61% Non-Equity Non-Equity ₹ 1,319 bn US$ 47 bn Oriented ₹ 1,408 bn US$ 47 bn Orient
Slide 6: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 0% YoY -2% 3,624 3,698 3,562 3,564 3,575 3,191 Jun-19 Mar-20 Jun-20 Jun-19 Mar-20 Jun-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2019 Mar-2020 Jun-2020 Jun-2019 Mar-2020 Jun-2020 HDFC MF,
Slide 7: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -21% YoY -18% 1,645 1,574 1,689 1,293 1,378 1,200 Jun-19 Mar-20 Jun-20 Jun-19 Mar-20 Jun-20 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2019 Mar-2020 Jun-2020 Jun-2
Slide 8: 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 Jun-2020 Others Jun-2020 Others Jun-2020 Others Jun-2020 Others 1.9% 9.6% 2.2% 10.3% Equity Equity Equity Liquid Liquid Equity 37.0% Liquid 36.6% Liquid 38.3% 33.3% 28.9% 39.4% 22.3% 19.4% Debt
Slide 9: Individual Investors – no of Accounts & MAAUM
Individual Investors – no of Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY -12% YoY 2% 2,197 1,935 1,924 9.20 9.34 9.35 58.8% 57.2% 51.7% 50.5% Jun-19 Mar-20 Jun-20 Jun-19 Mar-20 Jun-20 Industry Jun-20 (2) Individual MAAUM (Rs bn)(1) Individual cus
Slide 10: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share (Jun-20) Individual Assets Market Share (Mar-20) Individual Assets Market Share (Jun-19) 14.6% 15.0% 13.5% 13.4% 15.7% 12.0% 11.7% 13.6% 8.3% 9.9% 8.9% 7.8% 6.9% 7.0% 8.6% HDFC ICICI Pru SBI ABSL MF Nippon HDFC ICICI Pru SB
Slide 11: Unique Investors - HDFC AMC vs MF Industry
Unique Investors Unique Investors- HDFC AMC vs MF Industry 25.0 28% 27% 26% (Unique Investors in million) 20.8 21.1 19.6 20.0 15.0 10.0 5.4 5.6 5.6 5.0 0.0 Jun-19 Mar-20 Jun-20 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as identif
Slide 12: Systematic Transactions
Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 12.7 82% 11.8 70% 11.5 11.3 3.11 9.6 6.8 Over 5 Years Over 10 Years 4.7 4.9 1.23 3.1 Strong and stable “Order Book” to provide predictable flows Mar-14 Mar-15 Mar-
Slide 13: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Jun-20) Equity-oriented AUM (Jun-20) HDFC Bank 5.2% HDFC Bank 9.6% Banks, 9.9% Direct Banks, 15.3% 19.3% Direct 49.0% IFAs 23.4% IFAs National Distributors 40.7% 24.8% National Distributors 17.8% Jun-2019 Mar-2020 H
Slide 14: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities(1) #2 Player in B-30 Markets(1) B 30, 12.6% SBI MF, 21.0% Others, 38.8% HDFC MF, 11.7% ICICI Pru MF, 11.4% UTI MF, T 30, 8.5% ABSL, 8.6% 87.4% Network of 221 branches with 145 in B-30 cities(2) c. 65k+ empaneled distribution partners ______________
Slide 15: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 8.6% 32.8% 30.7% 69.9% Digitization Across Functions 91.4% 67.2% 69.3% 30.1% FY15 FY19 FY20 Q1FY21 Electronic Physical Strong online presence - dedicated separate digital pl
Slide 16: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced hdfcfund.com $ WhatsApp for Investors Investors & Partners: Quick links for easy Videos to help investors and for ease in communication online transactions, website landing page partners in their Digital journey assisting with digital transactions etc. Facility for int
Slide 17: Financials
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Slide 18: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings ( ₹ mm) Particulars Q1 FY21 Q1 FY20 Change Income Revenue from Operations 4,115 5,044 -18% Other Income 798 484 65% Total Income 4,913 5,528 -11% Expenses Finance Costs 22 23 -4% Fees and Commission Expenses 14 114 -88% Employee Benefit Expenses 526 567 -7% De
Slide 19: Notes
NOTES 1. The rapidly expanding spread of Covid 19 across the world has forced various actions to be taken by government, statutory and regulatory authorities to deal with its fallout. This pandemic has led to a great deal of uncertainty and unpredictability in the business environment. For most of t
Slide 20: Notes
NOTES 2. During the previous year, the Company had elected to exercise the option of a lower tax rate provided under Section 115BAA of the Income-tax Act, 1961, as introduced by the Taxation Laws (Amendment) Ordinance, 2019 dated September 20, 2019. Accordingly, the Company had recognised provision
Slide 21: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 63 59 54 29 22 46 13 12 37 41 34 34 YE FY18 YE FY19 YE FY20 3M FY21 As per Ind AS ____________________ Based on internal computations 20
Slide 22: Breakup of Investments
Breakup of Investments Total Investments: ₹ 42,212 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 0.4% Arbitrage, 14.4% Tax Free Bonds & Debentures, 12.6% Mutual Funds, 86.1% Liquid and Debt, 71.3% Other Equity, AIFs, etc, 1.2% Mutual Funds Other Equity, AIFs, et
Slide 23: Return On Equity and Dividend Per Share
Return On Equity and Dividend Per Share Return on Equity(1) FY18 FY19 FY20 40.3% 35.0% 35.6% Return on Equity has reduced in FY 19 due to substantial increase in average networth Return on Equity of FY18 was under Previous GAAP whereas for FY19 onwards, it is under Ind AS Dividend Per Share (2) FY 2
Slide 24: Thank You
ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 23
Slide 25: 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 26: Press Release: HDFC AMC net profit for the Quarter ended June 30, 2020
ss Press Release 23 July, 2020 HDFC AMC net profit for the Quarter ended June 30, 2020 is ₹3,024 million, a quarter on quarter increase of 4%. Dividend per share increases to Rs 28, as against Rs 24 per share. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the period
Slide 27: Corporate highlights
Mumbai, 23 July, 2020: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended June 30, 2020. CORPORATE HIGHLIGHTS • QAAUM of ₹3,562 billion as of June 30, 2020 compared to ₹3,624 billion as on June 30, 2019, a fall of 2%. 14.5% market share in QAAUM of t
Slide 28: Financial highlights for the quarter ended June 30, 2020
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2020 • The Operating Profit for the quarter ended June 30, 2020 was ₹3,006 million as compared to ₹3,815 million for the quarter ended June 30, 2019. This is a decrease of 21%. • Profit before tax for the quarter ended June 30, 2020 was down by 12%
Slide 29: 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
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