Q1 2025 HDFC Asset Management Company Ltd Earnings Call Transcript
Key Points
- HDFC Asset Management Co Ltd (NSE:HDFCAMC) surpassed INR7 trillion in AUM, with a significant tilt towards equity at 64.3%.
- The company added 1.1 million unique investors this quarter, reaching a total of 10.7 million unique investors.
- Revenue from operations increased to INR7,752 million, marking a growth of 35% YoY.
- Operating profit grew by 40% YoY, and PAT increased by 26% YoY to INR6,039 million.
- Debt-oriented funds saw a turnaround with net inflows of INR709 billion, following three consecutive quarters of outflows.
- Employee benefit expenses increased due to year-end increments and a rise in headcount by 280 people.
- Other expenses shot up, attributed to general business expenses, new fund offer expenses, KYC expenses, and outsourced service costs.
- The company opened only one new branch this quarter, with no significant plans for further expansion in the near term.
- The effective tax rate was low due to assets moving from short-term to long-term buckets, which may not be sustainable throughout the year.
- The equity yield saw a slight decline due to the rapid increase in AUM, impacting overall revenue margins.
Ladies and gentlemen, good day, and welcome to Q1 FY25 earnings conference call of HDFC Asset Management Company Limited. (Operator Instructions) Please note that this conference is being recorded.
From the management team, we have with us Mr. Navneet Munot, Mr. Naozad Sirwalla, and Mr. Simal Kanuga.
I now hand over this call to Mr. Simal Kanuga, who will give us a brief, following which we will proceed with the Q&A session. Thank you. And over to you, Simal.
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Thanks, Neerav, and good evening, everyone. The industry continued its upward journey and closed the quarter with AUM of over INR61 trillion, signifying sevenfold increase over the last 10 years. To put things in context, the size of the mutual fund industry as a whole was about INR8 trillion as on March 31, 2014. And now we have seen industry adding over INR10 trillion in last six
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