HDFC AMC Q3 Results: Quarterly Average AUM grows 5%, market share maintained

HDFC Asset Management Company Ltd. (HDFC AMC) reported its December quarter results on Wednesday, January 14, which were largely in-line with street expectations. The stock ended higher in response.

The company's Quarterly Average Assets Under Management (AUM) increased by 5% from the September quarter to ₹9.24 lakh crore. The 5% figure is in-line with industry growth.

HDFC AMC also maintained its overall market share, with its Equity QAAUM market share increasing by 10 basis points from the previous quarter to 13% from 12.9% earlier.

Revenue for the December quarter increased by 4.6% sequentially to ₹1,075 crore. Yields remained steady at 46.5 basis points, contrary to street expectations, which projected the yields to fall to 46.2 basis points.

Operating profit for HDFC AMC went up by 9% quarter-on-quarter to ₹876 crore. The rise was due to a 28% drop in other expenses and operating leverage.

Operating profit margins went up by 360 basis points from the September quarter to 81.52% from 77.94% in September.

Lower expenses and a 65% jump in other income resulted in the company's Adjusted net profit rising 15% quarter-on-quarter to ₹769.42 crore. Unique investors increased by 6% to 1.54 crore from 1.45 crore in September.

Shares of HDFC AMC ended 2.7% higher on Wednesday at ₹2,553 after the results announcement. The stock is up 32% in the last one year.