Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q1 FY22 Earnings Presentation
37 slides from Hdfc Asset Management's earnings presentation, Jul 16, 2021
Slide 1: Outcome of Board Meeting cover letter
-1 HDFC MUTUAL FUND BHAROSA APNO KA Date-July 16,2021 Ref7No/HDFCAMC/SE/2021 -22/41 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot C/l, Block G, Sir PJ Towers. Bandra Kurla Complex, Bandra (East), Dalai Street, Mumbai-400001. Mumbai- 400051. Kind Attn: Head - Listing Depar
Slide 2: Press Release: HDFC AMC net profit for the quarter
ss Press Release 16 July, 2021 HDFC AMC net profit for the Quarter ended June 30, 2021 is ₹ 3,454 million, an increase of 14% over June 30, 2020. Dividend per share increases to Rs 34, as against Rs 28 per share. HDFC Asset Management Company Limited (HDFC AMC) declares financial results for the per
Slide 3: Corporate Highlights
Mumbai, 16 July, 2021: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended June 30, 2021. CORPORATE HIGHLIGHTS • QAAUM of ₹4,169 billion as of June 30, 2021 compared to ₹3,562 billion as on June 30, 2020, a growth of 17%. 12.6% market share in QAAUM o
Slide 4: Financial Highlights for the Quarter Ended June 30, 2021
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2021 • The Operating Profit of the company for the quarter ended June 30, 2021 was ₹ 3,652 million as compared to ₹ 3,006 million for the quarter ended June 30, 2020. This is an increase of 21%. • Profit before tax for the quarter ended June 30, 20
Slide 5: 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 funds 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 F
Slide 6: HDFC Asset Management Company Limited Q1 FY21-22
HDFC Asset Management Company Limited Q1 FY21-22 (For the quarter ended June 30, 2021) 1
Slide 7: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 37% 40% 41% 38% 41% 43% 31.4 33.7 32.1 33.2 4.4 4.1 3.8 3.7 25.5 4.2 24.6 4.7 4.1 4.6 2.6 2.4 4.9 10.5 QAAUM (₹ trn) 5.5 10.6 AUM (₹ trn) 11.0 10.8 8.1 7.8 13.6 13.0 14.6 12.7 9.8 9.0 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Jun
Slide 8: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 51% 54% 54% 15% 16% 16% 34.1 34.1 102.0 32.2 32.2 97.3 5.6 91.1 5.2 26.1 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 26.1 15.8 14.9 4.0 12.9 28.5 26.9 22.1 17.3 18.3 13.2 Jun-20 Mar-
Slide 9: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual MAAUM by Asset class Equity MAAUM by Investor category Equity MAAUM by Location 65% 68% 70% 90% 91% 91% 26% 27% 27% 18.3 17.3 14.3 14.3 12.9 1.4 12.9 (MAAUM in ₹ trn) 5.4 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 1.2 3.8 13.2 5.6 3.4 9.5 9.5 4.6 1.
Slide 10: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 32.3 37.3 40.2 92 92 79 (SIP contribution in ₹ bn) (SIP AUM in ₹ tn) 4.8 4.3 3.0 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 No. of SIP Accounts (mm) ____________________ Source: AMFI 5
Slide 11: HDFC AMC at a glance
HDFC AMC at a glance Quarterly Average AUM Closing AUM Assets Under ₹ 2,394 bn Assets Under ₹ 2,326 bn Equity-Oriented US$ 32 bn Equity-Oriented US$ 31 bn Management(1) Management(1) 43% ₹ 4,169 bn 57% 44% ₹ 4,187 bn 56% Non-Equity Non-Equity ₹ 1,776 bn US$ 56 bn Oriented ₹ 1,861 bn US$ 56 bn Orient
Slide 12: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 17% YoY 17% 4,156 4,169 3,955 4,187 3,562 3,575 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2020 Mar-2021 Jun-2021 Jun-2020 Mar-2021 Jun-2021 HDFC MF
Slide 13: Total AUM and Market Share (Ex ETFs)
Total AUM and Market Share (Ex ETFs) Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 17% YoY 17% 4,124 4,133 3,923 4,150 3,546 3,556 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2020 Mar-2021 Jun-2021 Jun-2020 Mar-2021 Jun-20
Slide 14: Actively Managed Equity-oriented AUM and Market Share
Actively Managed Equity-oriented AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 33% YoY 31% 1,666 1,723 1,654 1,805 1,293 1,378 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2020 Mar-2021 Jun-2021 Jun-202
Slide 15: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 58% YoY 47% 1,588 1,568 1,522 1,548 992 1,054 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2020 Mar-2021 Jun-2021 Jun-2020 Mar-2021 Jun-2021 HDFC MF, H
Slide 16: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -39% YoY -35% 1,184 1,035 769 726 668 638 Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Jun-2020 Mar-2021 Jun-2021 Jun-2020 Mar-2021 Jun-2021 HDFC MF, HDF
Slide 17: 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 Jun-2021 Others Others Jun-2021 Others Liquid 2.4% 12.4% 2.6% 12.9% Liquid 17.4% 16.0% Equity Liquid Equity Liquid Equity Equity 42.6% 14.1% 41.0% 12.5% 43.3% 44.5% Debt Debt Debt Debt 3
Slide 18: Individual Investors – Accounts & MAAUM
Individual Investors – Accounts & MAAUM Number of Live Individual Accounts (in millions) Individual MAAUM % of Total YoY 29% YoY -5% 1,924 2,361 2,474 9.35 8.86 8.87 57.6% 57.9% 53.8% 51.7% Jun-20 Mar-21 Jun-21 Jun-20 Mar-21 Jun-21 Industry Jun-21 Individual MAAUM (Rs bn) Individual customers prefer
Slide 19: Most Preferred Choice of Individual Investors
Most Preferred Choice of Individual Investors Individual Assets Market Share Jun-21 Mar-21 Jun-20 14.6% 13.5% 12.7% 13.7% 12.8% 13.5% 12.1% 12.3% 12.0% 7.6% 7.3% 7.4% 7.3% 7.8% 6.9% HDFC ICICI Pru SBI Axis ABSL HDFC ICICI Pru SBI ABSL Axis HDFC ICICI Pru SBI ABSL Nippon MF MF MF MF MF MF MF MF MF MF
Slide 20: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 30.0 26% 23% 22% (Unique Investors in million) 25.0 23.9 22.8 21.1 20.0 15.0 10.0 5.6 5.3 5.3 5.0 0.0 Jun-20 Mar-21 Jun-21 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as id
Slide 21: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 84% 73% 11.8 11.5 11.3 3.05 10.4 9.6 9.8 6.8 1.77 Over 5 Years Over 10 Years 4.9 SIP AUM(2): ₹ 636 bn Strong and stable “Order Book” to provide predictable flows Mar-16 Mar-17 Mar-1
Slide 22: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Jun-2021) Equity-oriented AUM (Jun-2021) HDFC Bank 5.4% HDFC Bank 8.8% Banks 9.6% Direct Banks 13.8% 21.0% Direct 46.9% MFDs 25.6% MFDs National Distributors 41.5% 23.8% National Distributors 17.8% Jun-2020 HDFC Ban
Slide 23: Geographic Spread
Geographic Spread Total MAAUM by T30 and B30 cities #2 Player in B-30 Markets B 30, SBI MF, 14.9% 20.4% Others, 40.2% HDFC MF, 11.4% ICICI Pru MF, 10.7% Nippon UTI MF, T 30, MF, 8.5% 8.8% 85.1% We serve customers across ~99% of all pincodes in India Network of 227 branches with 149 in B-30 cities(2)
Slide 24: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 18% 15% 31% Digitization Across Functions 85% 82% 69% FY 19-20 FY 20-21 Q1 FY22 Electronic Physical Strong online presence - dedicated separate digital platforms distributio
Slide 25: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced Voice Search has been enabled on the Fintech Partnerships with the End to End Digital Solution for Corporate Website. setup of an API Gateway. KYC investors: Onboard, Transact and Interact hdfcfund.com Missed Call Service: Investors & Partners: Quick links for easy Dig
Slide 26: Financials
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Slide 27: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (₹ mm) Particulars Q1 FY22 Q1 FY21 Change Income Revenue from Operations 5,071 4,115 23% Other Income 1,009 798 26% Total Income 6,080 4,913 24% Expenses Finance Costs 22 22 0% Fees and Commission Expenses 13 14 -7% Employee Benefit Expenses# 835 526 59% Depre
Slide 28: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (₹ mm) Particulars Q1 FY22 Q4 FY21 Change Income Revenue from Operations 5,071 5,029 1% Other Income 1,009 426 137% Total Income 6,080 5,455 11% Expenses Finance Costs 22 24 -8% Fees and Commission Expenses 13 16 -19% Employee Benefit Expenses# 835
Slide 29: 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 30: Notes
NOTES 2. COVID-19 was declared a pandemic in March 2020. Since then it has evolved into a global public health and economic crisis that has had varying effects on the economies of different countries across the world. In India, through various phases of the crisis, as the health infrastructure strug
Slide 31: Notes
NOTES The Company has assessed the impact of the pandemic on its business and the same is not likely to be material. Since the situation is still uncertain, its effect on the operations of the Company may be, to some extent, different from that estimated as at the date of approval of these financial
Slide 32: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin (bps of AAUM) 63 59 54 48 49 29 22 13 12 14 37 41 36 34 35 YE FY18 YE FY19 YE FY20 YE FY21 3M FY22 As per Ind AS ____________________ Based on internal computations 27
Slide 33: Statement of Assets and Liabilities
Statement of Assets and Liabilities (₹ mm) As at As at June Particulars March 31, 30, 2021 2021 Assets Financial Assets 52,469 48,717 Non Financial Assets 2,158 2,230 Total Assets 54,627 50,947 Liabilities And Equity Liabilities Financial Liabilities 1,945 2,300 Non-Financial Liabilities 1,212 885 E
Slide 34: Breakup of Investments
Breakup of Investments Total Investments: ₹ 51,285 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 0.6% Arbitrage, 13.9% Debentures & Tax Free Bonds, 9.7% Mutual Funds, 88.6% Liquid and Debt, 85.5% Other Equity, AIFs, etc, 1.7% Mutual Funds Other Equity, AIFs, etc
Slide 35: 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 36: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED 31
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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