HDFC AMC Posts Robust Q3 Results

HDFC Asset Management Company (HDFC AMC) announced its third-quarter results on Wednesday, January 14, largely in line with market expectations. The company reported a significant increase in its financial metrics, leading to a higher closing stock price.

Q3 Performance Highlights

HDFC AMC's Quarterly Average Assets Under Management (AUM) grew by 5% from the previous quarter to ₹9.24 lakh crore. This growth rate matched the overall industry expansion. The firm also successfully maintained its market share, with its Equity QAAUM market share inching up by 10 basis points to 13% from 12.9%.

Financial Metrics and Market Position

Revenue for the quarter increased by 4.6% sequentially to ₹1,075 crore. Yields remained steady at 46.5 basis points, a figure that defied street projections of a slight decrease to 46.2 basis points. Operating profit experienced a 9% quarter-on-quarter rise, reaching ₹876 crore, attributed to a substantial 28% reduction in other expenses and the benefits of operating leverage.

Operating profit margins expanded by 360 basis points to 81.52% from 77.94% in the September quarter. The company's adjusted net profit saw a 15% sequential increase, amounting to ₹769.42 crore. This growth was fueled by lower expenses and a remarkable 65% jump in other income. The number of unique investors also increased by 6% to 1.54 crore from 1.45 crore in September.

Shares of HDFC AMC closed 2.7% higher at ₹2,553 on Wednesday. The stock has appreciated by 32% over the past year.