HDFC AMC Q1 result update!
Last updated: 24 Jul, 2020 | 09:14 am
- A minute rise in profit: HDFC AMC reported a 3.62% increase in net profit on a YOY basis, for the Q1FY21 the figure was Rs. 302.36 as compared to Rs 291.79 a year ago. However, net revenue declined by 18.42% YoY to Rs. 411.49 crores in Q1FY21 from Rs504.39cr in Q1FY20.EBITDA margin as of Q1FY21 was at 76.91% declining by 1.55% YoY.However, the net profit margin in Q1FY21 came in at 73.48%, which increased by 15.63% YoY.
- Profit supported by lower tax: The company said that for the year they had elected a provision for lower tax rate under the IT Act, which resulted in a 43% fall in tax expenditure from 138.13 crores in Q1FY20 to Rs 78.01 crores in Q1FY21.
- Flat AUM numbers: Quarterly Average AUM registered a 2% decline on a YOY basis.
- Market share: The figures for market share in AUM also remained flat, with HDFC AMC having a 14.5% share on a quarterly average basis as of Q1FY21.The company retains the highest market share for Individual Investors with 15.7% in Q1FY21 as compared to 14.6% a year ago.
- Management disclosure: The company informed that since the revenue of the company is ultimately dependent on the value of the assets under management (AUM) it manages, changes in market conditions and the trend of flows into mutual funds may have an impact on its operations and the situation is still evolving thus the assessed impact may be different as at the date of approval of these financial results.
Our proprietary VGQM model has a HOLD rating on the stock.