Aditya Birla Sun Life AMC (ABSLAMC) Q4 06/07 earnings summary

Executive summary

• FY07 marked strong AUM growth and higher fee income, while net profit declined YoY amid higher expenditure and depreciation.

• Domestic AUM rose 30% to Rs. 19,065.77 crore; total fund AUM was Rs. 20,849.15 crore, including Rs. 1,783.38 crore offshore.

Financial highlights

• Total income increased to Rs. 9,545.42 lakh from Rs. 7,506.09 lakh; management, advisory and portfolio fees rose to Rs. 8,190.21 lakh from Rs. 7,106.71 lakh.

• Investment and other income reached Rs. 1,355.21 lakh vs Rs. 399.38 lakh, including Rs. 999.58 lakh dividend income from a subsidiary.

• Total expenditure rose to Rs. 6,637.66 lakh from Rs. 4,056.25 lakh; profit before depreciation and tax was Rs. 2,907.76 lakh vs Rs. 3,449.83 lakh.

• Net profit was Rs. 1,427.23 lakh vs Rs. 1,990.35 lakh; profit before tax after depreciation was Rs. 2,180.87 lakh vs Rs. 3,009.80 lakh.

Outlook and guidance

• Industry outlook remained positive over the long term, though near-term equity markets could be subdued by global oil prices, interest rates, dollar strength and weaker global risk appetite.

• SIPs, fixed maturity plans, cash and floating-rate funds were seen as opportunities; debt-side inflows were expected to remain limited amid corporate capex and reduced institutional exposure.

• Approval was being sought from SEBI for Birla Sun Life Gold Exchange Traded Fund; real estate was also cited as a potential asset class for fund houses.