HDFC Asset Management Company (HDFCAMC) Q1 24/25 earnings summary

Executive summary

• Industry AUM reached INR 61.4 trillion, a sevenfold increase over 10 years, with over INR 10 trillion added in the last 6 months.

• Q1 FY25 net profit rose 26% year-over-year to ₹6,039 million, with revenue from operations up 35% to ₹7,752 million and operating profit up 40% to ₹5,793 million.

• Equity-oriented funds saw 40 consecutive months of positive net flows; actively managed equity funds had net flows exceeding INR 1 trillion in Q1 FY25.

• Unique investor count rose to 10.7 million, with 1.1 million added this quarter; market share in individual investors at 13.3%.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, after review by statutory auditors and the audit committee.

Financial highlights

• Total income for the quarter was INR 9,483 million, up 29% year-over-year.

• Revenue from operations grew 35% year-over-year to INR 7,752 million.

• Operating profit increased 40% year-over-year; PAT reached INR 6,039 million, up 26% year-over-year.

• Standalone profit after tax increased to ₹603.98 crore, compared to ₹477.51 crore in the same quarter last year.

• Basic EPS (consolidated) for the quarter was ₹28.28, up from ₹22.37 year-over-year.

Outlook and guidance

• Employee cost growth expected at 10-12% annually, including ESOPs, unless there is significant expansion.

• Other expenses guided to grow 12-15% annually, reflecting investments in branches, technology, and business expansion.

• Management highlights strong and stable SIP order book, robust digital engagement, and continued focus on expanding distribution and digital channels.

• Focus remains on consolidating leadership across product categories and leveraging HDFC Bank’s distribution.