HDFC Asset Management Company today reported a 25 per cent rise in net profit at Rs 205.2 crore for the three months to June 2018, driven by a healthy 35 basis point (bps) in operating margin, compared with 32 basis points in the same quarter the previous year.
The company, which got listed with a stellar performance early this month with a closing premium of 65 per cent on debut, had reported Rs 164.6 crore net income during the same period last year.
Its gross revenue rose 20 per cent to Rs 501.1 crore, of which operational income grew 21 per cent to Rs 471.2 crore for the quarter.
Operating profit margin, which is the operating profit as a basis point of average asset under management (AUM), improved to 35 bps for the quarter, from 32 bps in the quarter to June 2017, the company said in a statement.
Total AUM rose to Rs 3,01,100 crore, registering a growth of 22 per cent over Rs 2,47,800 crore a year ago, helping it improve the market share to 13.1 per cent in total quarterly average AUM across mutual funds, and retain the tag of the second largest private sector AMC.
AUM in actively-managed equity oriented funds grew to Rs 1,46,500 crore from Rs 1,09,800 crore, clipping at growth of over 33 per cent or a market share of 16.4 per cent.
It can be noted that HDFC AMC is the single largest player in the equity-oriented funds, with over half of its overall AUM being parked in equities.
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Of the total AUM, 13 per cent came in from the B-30 markets, the company said.
The ratio of equity-oriented assets and non-equity oriented assets is 50:50, compared with the industry ratio of 42:58.
The company saw its individual accounts increasing 29 per cent to 8.36 million, from 6.48 million in June 2017, while its individual monthly average AUM grew 26 per cent.
As much as 62.4 per cent of its total monthly average AUM is contributed by individuals, compared with 52 per cent for the industry, the company said.
From the individual monthly average AUM perspective, HDFC AMC enjoys 15.4 per cent market share, making the company the preferred choice of individual investors.
During the quarter, the company processed 3.36 million systematic transactions with a value of Rs 1,160 crore in the quarter.