HDFC Asset Management Company (HDFCAMC) Q2 24/25 earnings summary

Executive summary

• Industry AUM reached INR 67 trillion, with unique investors at 50 million and folio accounts at 210 million, reflecting robust growth over three years.

• Quarterly average AUM reached ₹7,588 billion, a 45% increase year-over-year, with a market share of 11.5%.

• Actively managed equity-oriented funds saw record net new flows, with NFOs contributing significantly and QAAUM up 63% year-over-year to ₹4,676 billion.

• Individual investors contributed 71% of total monthly average AUM, with a 13.2% market share among individuals.

• Total live accounts reached 20.7 million, and unique investors stood at 11.8 million as of September 30, 2024.

Financial highlights

• Revenue from operations for Q2 FY25 was ₹8,873 million, up 38% year-over-year; operating profit was ₹6,881 million, up 47%.

• Profit after tax for Q2 FY25 was ₹5,769 million, up 32% year-over-year; H1 FY25 PAT was ₹11,808 million, up 29%.

• Standalone Q2 FY25 revenue from operations: ₹887.21 crore; standalone PAT: ₹576.88 crore.

• Deferred tax liability increased by ₹69.75 crore due to changes in capital gains tax treatment, impacting PAT for the quarter.

• Operating margin for Q2 FY25 was 36 bps of AAUM.

Outlook and guidance

• Flow market share remains higher than book market share, with expectations to continue building on this momentum.

• Equity margins are expected to keep sliding with rising AUM, but the pace of decline has been softened by recent rationalization.

• The company continues to focus on expanding its digital platforms and distribution network, with increased penetration in B-30 cities and a strong presence among individual investors.

• Emphasis on ESG principles and sustainable growth remains a strategic priority.

• Anticipates continued growth in systematic investment plans and alternative business expansion.