HDFC AMC’s profit down 8% YoY to Rs 338 crore in Q2

HDFC Asset Management Company’s (AMC’s) profit fell 8% year on year (YoY) to Rs338.06 crore in the September quarter mainly because of the Covdi-19 pandemic. Its quarterly average assets under management (QAAUM) of Rs 3.75 lakh crore as of September 30 was marginally lower compared to Rs 3.76 lakh crore in the comparable period last year.

The fund house’s operating profit for the second quarter was Rs 349.1 crore, 7% lower YoY. According to the company, 2.98 million systematic transactions with a value of Rs 900 crore were processed during September.

QAAUM in actively managed equity-oriented funds, excluding index funds, stood at Rs 1.43 lakh crore as on September 30 and HDFC AMC had a market share of 14.1%. The AMC is the largest actively managed equity-oriented mutual fund manager in the country. The stocks of HDFC AMC on Thursday ended at Rs 2,358, up 0.92% or Rs 21.40 on the BSE.

The fund house also said its financial performance in the first quarter had shown a worsening trend owing to the impact of Covid-19 on the markets. “While there continues to be uncertainty regarding how the Covid-19 pandemic will ultimately pan out, markets have stabilised and our financial performance this quarter has shown an improvement. This is evident from sequential improvement in our profit parameters and even in our operating margin, which has gone up from 34 bps in the quarter ended June 30, to 37 bps in the quarter ended September 30,” said the fund house.

Over 65,000 empanelled distribution partners across MFDs, national distributors and banks, serviced through a total of 223 branches of which 146 are in B-30 locations for the HDFC AMC. The contribution of B-30 locations to our total monthly average AUM is 14.2%.