Hdfc Asset Management Co. Ltd. · NSE:HDFCAMC
Hdfc Asset Management — Q3 FY22 Earnings Presentation
39 slides from Hdfc Asset Management's earnings presentation, Jan 24, 2022
Slide 1: Outcome of Board Meeting cover letter to exchanges
Ref/No/HDFCAMC/SE/2021-22/97 Date – January 24, 2022 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: Press Release: Q3 FY22 net profit and AUM
ss Press Release 24 January, 2022 HDFC AMC net profit for the quarter ended December 2021 at ₹3,597 million, a year on year decrease of 3% on fall in other income by 24%. Total AUM as of December 31, 2021 at ₹4,367 billion, a year on year increase of 7%. HDFC Asset Management Company Limited (HDFC A
Slide 3: Corporate Highlights
Mumbai, 24 January, 2022: HDFC Asset Management Company Limited today reported its financial performance for the quarter ended December 31, 2021. CORPORATE HIGHLIGHTS • AUM of ₹4,367 billion as of December 31, 2021 compared to ₹4,068 billion as on December 31, 2020, an increase of 7%. 11.6% market s
Slide 4: Financial Highlights for the Quarter Ended December 31, 2021
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED DECEMBER 31, 2021 The numbers for the quarter are as follows: The Operating Profit of the company for the quarter ended December 31, 2021 was ₹ 3,989 million as compared to ₹ 3,697 million for the quarter ended December 31, 2020. This is an increase of 8%.
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 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
Slide 6: HDFC Asset Management Company Limited Q3 FY21-22
HDFC Asset Management Company Limited Q3 FY21-22 (For the quarter ended December 31, 2021) 1
Slide 7: Industry - AUM and Net Sales
Industry - AUM and Net Sales Quarterly Average AUM (QAAUM) Closing AUM 38% 43% 45% 39% 46% 47% 38.2 36.7 37.7 36.2 5.3 5.3 4.9 31.0 5.1 29.7 4.8 4.2 4.6 4.7 3.4 3.2 4.5 4.8 QAAUM (₹ trn) 10.9 10.7 10.3 AUM (₹ trn) 11.0 10.5 11.0 15.6 17.2 16.8 17.6 11.2 12.2 Dec-20 Sep-21 Dec-21 Dec-20 Sep-21 Dec-21
Slide 8: Industry - Individual / Institutional MAAUM, B30
Industry - Individual / Institutional MAAUM, B30 Individual Folios Overall MAAUM by Investor category Overall MAAUM by Location 52% 55% 55% 16% 16% 17% 119.5 37.4 37.9 37.4 37.9 111.0 6.2 6.3 93.8 31.0 31.0 (MAAUM in ₹ trn) (MAAUM in ₹ trn) 17.0 17.1 5.0 14.8 31.2 31.6 26.0 20.4 20.9 16.2 Dec-20 Sep
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 66% 73% 74% 91% 91% 91% 27% 27% 27% 20.4 20.9 17.1 17.1 16.5 16.5 5.4 1.6 (MAAUM in ₹ trn) (MAAUM in ₹ trn) (MAAUM in ₹ trn) 16.2 5.5 1.5 4.6 4.4 11.8 11.8 5.4
Slide 10: Industry - SIP Flows & AUM
Industry - SIP Flows & AUM SIP Flows SIP AUM 34.7 44.9 49.1 113 104 5.4 5.7 (SIP contribution in ₹ bn) (SIP AUM in ₹ tn) 84 4.0 Dec-20 Sep-21 Dec-21 Dec-20 Sep-21 Dec-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 ₹ 2,429 bn Assets Under ₹ 2,318 bn Equity-Oriented US$ 33 bn Equity-Oriented US$ 31 bn Management(1) Management(1) 46% ₹ 4,471 bn 54% 47% ₹ 4,367 bn 53% Non-Equity Non-Equity ₹ 2,042 bn US$ 60 bn Oriented ₹ 2,048 bn US$ 59 bn Orient
Slide 12: Total AUM and Market Share
Total AUM and Market Share Quarterly Average AUM ₹ billion Closing AUM ₹ billion YoY 15% YoY 7% 4,389 4,471 4,357 4,367 3,895 4,068 Dec-20 Sep-21 Dec-21 Dec-20 Sep-21 Dec-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2020 Sep-2021 Dec-2021 Dec-2020 Sep-2021 Dec-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 15% YoY 7% 4,350 4,428 4,039 4,316 4,322 3,867 Dec-20 Sep-21 Dec-21 Dec-20 Sep-21 Dec-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2020 Sep-2021 Dec-2021 Dec-2020 Sep-2021 Dec-202
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 31% YoY 23% 1,877 1,966 1,944 1,967 1,505 1,605 Dec-20 Sep-21 Dec-21 Dec-20 Sep-21 Dec-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2020 Sep-2021 Dec-2021 Dec-202
Slide 15: Debt AUM and Market Share
Debt AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY 10% YoY -2% 1,610 1,593 1,553 1,588 1,524 1,453 Dec-20 Sep-21 Dec-21 Dec-20 Sep-21 Dec-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2020 Sep-2021 Dec-2021 Dec-2020 Sep-2021 Dec-2021 HDFC MF,
Slide 16: Liquid AUM and Market Share
Liquid AUM and Market Share Quarterly Average AUM Closing AUM ₹ billion ₹ billion YoY -14% YoY -15% 821 788 721 704 669 634 Dec-20 Sep-21 Dec-21 Dec-20 Sep-21 Dec-21 Market Share - Quarterly Average AUM Market Share – Closing AUM Dec-2020 Sep-2021 Dec-2021 Dec-2020 Sep-2021 Dec-2021 HDFC MF, HDFC MF
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 Dec-2021 Others Dec-2021 Others Others Liquid 2.9% 14.0% Liquid 2.9% 14.0% 15.7% 15.3% Equity Liquid Equity Equity Liquid Equity 45.7% 12.5% 45.1% 46.9% 12.1% 46.6% 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 18% YoY 6% 2,228 2,603 2,623 9.50 8.99 9.09 58.8% 59.4% 55.3% 55.0% Dec-20 Sep-21 Dec-21 Dec-20 Sep-21 Dec-21 Industry Dec-21 Individual MAAUM (Rs bn) Individual customers prefer
Slide 19: Amongst preferred choice of Individual Investors
Amongst preferred choice of Individual Investors Individual Assets Market Share Dec-20 Sep-21 Dec-21 13.8% 12.9% 12.8% 12.7% 12.3% 12.2% 12.6% 12.6% 12.5% 7.6% 7.9% 7.9% 7.1% 7.0% 6.8% HDFC ICICI Pru SBI ABSL Axis HDFC ICICI Pru SBI Axis ABSL ICICI Pru HDFC MF SBI MF Axis MF ABSL MF MF MF MF MF MF M
Slide 20: Unique Investors
Unique Investors Unique Investors- HDFC AMC vs MF Industry 35.0 25% 20% 19% (Unique Investors in million) 30.6 30.0 26.7 25.0 21.5 20.0 15.0 10.0 5.4 5.4 5.7 5.0 0.0 Dec-20 Sep-21 Dec-21 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors
Slide 21: Systematic Transactions
Systematic Transactions Inflows Through Systematic Transactions Systematic Transactions (₹ bn) Long Tenure SIP Book(1) 3.44 85% 75% 11.8 11.9 11.5 11.3 10.8 10.4 9.1 6.8 1.77 Over 5 Years Over 10 Years 4.9 SIP AUM(2): ₹ 702 bn Strong and stable “Order Book” to provide predictable flows Mar-16 Mar-17
Slide 22: Multi-channel Distribution Network
Multi-channel Distribution Network Well diversified distribution channels Total AUM (Dec-2021) Equity-oriented AUM (Dec-2021) HDFC Bank 5.4% HDFC Bank 8.7% Banks 9.7% Direct Banks 13.6% 21.5% Direct 44.6% MFDs 26.1% MFDs National Distributors 41.4% 23.4% National Distributors 19.5% Dec-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, 15.6% 20.8% Others, 41.4% HDFC MF, 10.9% ICICI Pru MF, 10.8% Nippon India UTI MF, T 30, MF, 7.8% 8.3% 84.4% We serve customers across ~98% of all pincodes in India Network of 227 branches with 149 in B-30 cit
Slide 24: Strong Digital Presence
Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 18% 21% 31% Digitization Across Functions 82% 79% 69% FY 19-20 FY 20-21 FY22 YTD Electronic Physical Strong online presence - dedicated separate digital platforms distributi
Slide 25: Digital Initiatives - Enhanced
Digital Initiatives - Enhanced More options for investors Improved User Journey & drop Enabled management. Doubled for SIP transactions Biometric Login conversion rate on campaigns. Enabled transactions for Fully Automated Testing via Multiple options for MFDs to Non-individual Investors of MFDs Rob
Slide 26: ESG Initiatives
ESG Ini a ves Environment Social Governance Installation of low Equal opportunity The Board at HDFC AMC consumption, energy employer - 345 out of is active, well-informed efficient fittings. our 1,207 employees are and independent, with women. Over 30% of clearly defined Separation of waste & senior
Slide 27: ESG Initiatives
ESG Ini a ves Environment initiative Upskilling Initiative Social initiative Social Initiative #NurtureNature '#BarniSeAzadi’ Launched in collabora�on 1000+ Employees The campaign aims at Partnering with NGOs to make with “Grow-Trees” to increase completed the CFA transi�oning the mindset of our cor
Slide 28: Financials
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Slide 29: Financials Summary – Nine Months Earnings
Financials Summary – Nine Months Earnings (₹ mm) Particulars 9ME FY22 9ME FY21 Change Income Revenue from Operations 15,991 13,496 18% Other Income 2,532 3,066 -17% Total Income 18,523 16,562 12% Expenses Finance Costs 66 66 0% Fees and Commission Expenses 39 41 -5% Employee Benefit Expenses# 2,408
Slide 30: Financials Summary – Quarterly Earnings
Financials Summary – Quarterly Earnings (₹ mm) Particulars Q3 FY22 Q3 FY21 Change Income Revenue from Operations 5,497 4,819 14% Other Income 862 1,131 -24% Total Income 6,359 5,950 7% Expenses Finance Costs 22 22 0% Fees and Commission Expenses 13 14 -7% Employee Benefit Expenses# 775 568 36% Depre
Slide 31: Financials Summary – Sequential Quarterly Earnings
Financials Summary – Sequential Quarterly Earnings (₹ mm) Particulars Q3 FY22 Q2 FY22 Change Income Revenue from Operations 5,497 5,423 1% Other Income 862 661 30% Total Income 6,359 6,084 5% Expenses Finance Costs 22 22 0% Fees and Commission Expenses 13 13 0% Employee Benefit Expenses# 775 798 -3%
Slide 32: Notes: Employee Stock Option Scheme
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 33: Notes: COVID-19 impact
NOTES 2. COVID-19 was declared a pandemic in March 2020 and since then it has had a sizable impact on the economies of various countries. While the situation had improved significantly and there had been an all-round recovery in economic activity, a new variant of the virus named Omicron recently em
Slide 34: Operating Profit Margin
Operating Profit Margin Operating Revenue Operating Expenses Operating Margin 63 59 (bps of AAUM) 54 48 48 29 22 13 12 13 37 41 34 36 35 YE FY18 YE FY19 YE FY20 YE FY21 9ME FY22 As per Ind AS Operating margin (bps of AAUM) for Q1 FY 22, Q2 FY 22 and Q3 FY 22 are 35, 36 and 35 respectively __________
Slide 35: Statement of Assets and Liabilities
Statement of Assets and Liabilities (₹ mm) As at As at Particulars Dec 31, March 31, 2021 2021 Assets Financial Assets 53,282 48,717 Non Financial Assets 2,009 2,230 Total Assets 55,291 50,947 Liabilities And Equity Liabilities Financial Liabilities 2,281 2,300 Non-Financial Liabilities 1,327 885 Eq
Slide 36: Breakup of Investments
Breakup of Investments Total Investments: ₹ 51,956 million Breakdown of Total Investments Breakdown of Mutual Fund Investments Equity, 2.4% Arbitrage, 14.2% Debentures & Tax Free Bonds, 9.5% Mutual Funds, 87.4% Liquid and Debt, 83.4% Other Equity, AIFs, etc, 3.1% Mutual Funds Other Equity, AIFs, etc
Slide 37: 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 38: Thank You
‘ASSET MANAGEMENT COMPANY LIMITED Thank You ASSET MANAGEMENT COMPANY LIMITED
Slide 39: 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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