UTI Asset Management Company Q3 PAT skid 10% YoY to Rs 127 cr

UTI Asset Management Company (AMC)'s consolidated net profit fell 9.5% to Rs 126.93 crore on a 10.1% decline in net sales to Rs 308.56 crore in Q3 FY22 over Q3 FY21.

Consolidated profit before tax (PBT) dropped 17.8% to Rs 148.01 crore in Q3 FY22 from Rs 180.16 crore in Q3 FY21.

UTI AMC Group Total Assets Under Management (AUM) stood at Rs 13,11,414 crore as on 31 December 2021, rising 19% Y-o-Y (year-on-year). UTI Mutual Fund (MF) Quarterly Average Assets Under Management (QAAUM) was at Rs 2,24,671 crore for December 2021, growing 36% from December 2020. UTI MF QAAUM has risen 7.5% during the quarter as compared to 5.5% growth for the MF Industry.

For the quarter ended 31 December 2021, the equity assets (active + passive) contributed 70.1% to UTI MF's average AUM. For the October-December 2021 quarter, the ratio of equity oriented QAAUM and non-equity oriented QAAUM was 70:30 for UTI MF as against the industry ratio of 60:40.

The core revenue from operations for Q3 FY22 (comprising only of sale of services) amounted to Rs 282 crore, recording a growth of 33% as against Q3 FY21. The core PBT (excluding M2M gain, income from sale of investment and other non-operating income) for the quarter stood at Rs 122 crore, soaring 149% as against Q3 FY21. The core profit after tax (excluding M2M gain, income from sale of investment and other non-operating income) for Q3 FY22 was at Rs 91 crore, up by 153% as compared to Q3 FY21.

Gross Inflow mobilized through SIP for the quarter ending on 31 December 2021 stood at Rs 1,352 crore. The SIP AUM as of 31 December 2021 was at Rs 18,126 crore, denoting an increase of 4.24% as compared to 30 September 2021. For the quarter ended 31 December 2021, digital purchase transactions rose to 25.62 lakh transactions, registering an growth of 14.5% over the quarter ended as on 30 September 2021. The digital channel contributed 95.7% to total new purchase transactions.

Commenting on the financial results, Imtaiyazur Rahman, the chief executive officer (CEO) of UTI AMC, said, "We have continued our positive momentum in Q3 FY22 with sustained fund performance, robust risk management, and granular distribution network. Given the environment & heightening concerns with the emergence of the new variant, the volatility in the market was one of the factors that could have become a matter of concern for the investors. However, it is encouraging that our fundamental strengths and the experience of our vast talent pool, has provided confidence to investors."

Meanwhile, the board approved, the re-appointment of Imtaiyazur Rahman as the CEO of the company for another term of two years effective from 13 June 2022 till 12 June 2024, post completion of his present term on 12 June 2022.

Shares of UTI Asset Management Company (AMC) slipped 1.54% to close at Rs 968.65 on BSE yesterday, 28 January 2022. UTI Asset Management Company (UTI AMC) is Investment Manager to UTI Mutual Fund.

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