HDFC Asset Management Company (HDFCAMC) Q4 15/16 earnings summary

Executive summary

• FY16 net profit rose to ₹477.88 crore from ₹415.50 crore; AAUM increased 18% YoY to ₹1,72,598.91 crore.

• Mutual Fund activity remained the largest business, supported by expanded schemes and a nationwide service network; PMS included the completion and exit of the Real Estate Portfolio I.

Financial highlights

• Total revenue was ₹1,494.34 crore versus ₹1,064.28 crore in FY15; operating revenue was ₹1,442.54 crore and other income ₹51.80 crore.

• Operating expenses were ₹786.09 crore versus ₹441.68 crore; PBT was ₹708.25 crore versus ₹622.60 crore, and PAT was ₹477.88 crore versus ₹415.50 crore.

• Net worth at March 31, 2016 was ₹1,144.35 crore, compared with ₹1,112.19 crore at March 31, 2015.

Outlook and guidance

• ETFs were positioned to capture the potential of long-term provident fund money entering equities; management expected ETFs to play a key role in future AUM growth.

• Retirement Savings Fund plans target long-term savings and retirement planning; the NFO collected ₹113 crore across its Equity, Hybrid Equity and Hybrid Debt plans.