{"id":157700,"date":"2024-01-12T10:32:02","date_gmt":"2024-01-12T15:32:02","guid":{"rendered":"https:\/\/44.250.171.167\/?p=157700"},"modified":"2024-01-12T10:32:04","modified_gmt":"2024-01-12T15:32:04","slug":"hdfc-asset-management-company-ltd-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/hdfc-asset-management-company-ltd-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"HDFC Asset Management Company Ltd Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from HDFC Asset Management Company Ltd (HDFCAMC) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>AUM Milestones<\/strong>\n<ul>\n<li>The mutual fund industry reached INR50 trillion AUM as of December 2023, a 27% YoY growth.<\/li>\n<li>Nifty 50 returned over 20% in the last year while actively managed equity funds grew 29%.<\/li>\n<li>Equity funds now constitute over 50% share of total industry AUM at INR25.9 trillion.<\/li>\n<li>SIP contributions reached INR9.6k crore in December 2023 with total SIP AUM crossing INR10 lakh crore.<\/li>\n<\/ul>\n<\/li>\n<li><strong>HDFC AMC Performance<\/strong>\n<ul>\n<li>HDFC AMC total AUM crossed INR5.5 lakh crore, up 24% YoY, with 11.2% industry market share.<\/li>\n<li>Actively managed equity AUM was INR3.47 lakh crore, up 50% YoY vs 39% for industry.<\/li>\n<li>Systematic flows grew 53% YoY to INR26.3 billion in December 2023 with 6.81 million transactions.<\/li>\n<li>Average asset mix remains equity heavy at 61% vs 53% industry average.<\/li>\n<li>Saw over 50% growth in SIP transactions value and volume.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Revenues from ops grew by 20% YoY to INR671 crore driven by higher AUM fees and other income.<\/li>\n<li>Operating profit rose by 25% YoY to INR496 crore with stable margins of 73 bps.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Debt and Liquid Fund Market Share<\/strong>\n<ul>\n<li>HDFC AMC losing some market share in debt and liquid funds recently.<\/li>\n<li>Were late to launch debt index funds, awaiting regulatory clarifications.<\/li>\n<li>Liquid funds market share has fluctuated based on market conditions.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Equity Funds Market Share Growth<\/strong>\n<ul>\n<li>Gained almost 100 bps equity funds market share over last 12 months.<\/li>\n<li>Strong long-term performance track record and product range.<\/li>\n<li>Significant growth potential remains in categories like large\/mid caps.<\/li>\n<\/ul>\n<\/li>\n<li><strong>HDFC Bank Distribution<\/strong>\n<ul>\n<li>HDFC Bank share of HDFC AMC AUM has declined recently.<\/li>\n<li>However, HDFC Bank selling more in absolute terms.<\/li>\n<li>Flow share remains higher than closing AUM share.<\/li>\n<li>Other distribution channels growing faster like direct plans.<\/li>\n<li>Overall HDFC Bank flow share higher than closing AUM share.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margins and Economies of Scale<\/strong>\n<ul>\n<li>Margins declined due to sliding scale TER structure despite better asset mix.<\/li>\n<li>As AUM grows, TERs decline based on SEBI formula, but higher AUM offsets lower TER.<\/li>\n<li>Regulated skin-in-the-game rule helps AMCs benefit from market rallies.<\/li>\n<li>Mandated to invest a percentage of AUM as skin-in-the-game, boosting other income.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Direct Plan Performance<\/strong>\n<ul>\n<li>Direct plans contribute 23% of closing AUM, higher for flows.<\/li>\n<li>Driven by lower TER and investors choosing direct route.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Alternative Investments<\/strong>\n<ul>\n<li>Launched an AIF fund of funds with INR8 billion commitments.<\/li>\n<li>Invested in 9 selected AIFs, looking to raise more capital.<\/li>\n<li>Adding senior resources to build private credit capability. Aims to launch private credit AIF products in 2H 2024.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Asset Mix and Margin Outlook<\/strong>\n<ul>\n<li>No specific target set for equity share of AUM mix.<\/li>\n<li>Accept inflows across all products &#8211; equity, debt, liquid, hybrid.<\/li>\n<li>Equity share is expected to continue to increase over time due to higher mark-to-market gains and systematic flows.<\/li>\n<li>Hard to predict when margin dilution will bottom out.<\/li>\n<li>New lower margin AUM has less impact on larger AUM base.<\/li>\n<li>Monthly commissions now seem to be at more acceptable levels, and in turn operating leverage should help offset further dilution.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Investor Growth Outlook<\/strong>\n<ul>\n<li>Significant room for further penetration despite 4.2 crore investors.<\/li>\n<li>50 crore PAN cards issued show much larger target market.<\/li>\n<li>Regulator talking of making INR250 SIPs viable to expand reach.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Rural Penetration<\/strong>\n<ul>\n<li>Don&#8217;t disclose rural vs. urban split, but cover 99% of pin codes.<\/li>\n<li>173 of 253 branches in B30 towns beyond top 30 cities.<\/li>\n<li>Digital finance growth in India aiding further mutual fund penetration.<\/li>\n<li>Significant runway for growth in smaller towns and villages.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from HDFC Asset Management Company Ltd (HDFCAMC) Q3 FY24 Earnings Concall AUM Milestones The mutual fund industry reached INR50 trillion AUM as of December 2023, a 27% YoY growth. Nifty 50 returned over 20% in the last year while actively managed equity funds grew 29%. Equity funds now constitute over 50% share of [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[10169,1792,9961],"class_list":["post-157700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-earnings","tag-financial-services","tag-mutual-funds"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":154892,"url":"https:\/\/alphastreet.com\/india\/hdfc-asset-management-company-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":157700,"position":0},"title":"HDFC Asset Management Company Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"October 13, 2023","format":false,"excerpt":"Key highlights from HDFC Asset Management Company Ltd (HDFCAMC) Q2 FY24 Earnings Concall Industry Growth Trends Quarterly average AUM reached INR47 trillion, up 20% year-over-year. Actively managed equity funds near 50% of total AUM at INR23.1 trillion, up 26%. Debt funds QAAUM surged to INR10.3 trillion. B30 category AUM steady\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":171627,"url":"https:\/\/alphastreet.com\/india\/uti-asset-management-q2-fy26-earnings-results\/","url_meta":{"origin":157700,"position":1},"title":"UTI Asset Management Q2 FY26 Earnings Results","author":"Chirag Gupta","date":"October 20, 2025","format":false,"excerpt":"UTI Asset Management Company Ltd is primarily engaged in the activities of raising funds for and to render investment management services to schemes of UTI Mutual Fund. It is registered with SEBI under the SEBI (Mutual Funds) Regulations, 1996. It was the first to introduce Mutual Funds in India and\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"UTI Asset Management Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/UTI-Asset-Management-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/UTI-Asset-Management-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/UTI-Asset-Management-Q2-FY26-Earnings-Results.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/UTI-Asset-Management-Q2-FY26-Earnings-Results.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/UTI-Asset-Management-Q2-FY26-Earnings-Results.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/UTI-Asset-Management-Q2-FY26-Earnings-Results.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":163078,"url":"https:\/\/alphastreet.com\/india\/hdfc-asset-management-company-ltd-q1-fy25-earnings-conference-call-insights\/","url_meta":{"origin":157700,"position":2},"title":"HDFC Asset Management Company Ltd Q1 FY25 Earnings Conference Call Insights","author":"Praveen","date":"July 16, 2024","format":false,"excerpt":"Key highlights from HDFC Asset Management Company Ltd (HDFCAMC) Q1 FY25 Earnings Concall Industry Growth Mutual fund industry AUM reached INR61 trillion, representing a seven-fold increase over the last 10 years. Industry size grew from INR8 trillion in March 2014. Over INR10 trillion added in the last six months alone.\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":171544,"url":"https:\/\/alphastreet.com\/india\/hdfc-amc-q2-fy26-earnings-results\/","url_meta":{"origin":157700,"position":3},"title":"HDFC AMC Q2 FY26 Earnings Results","author":"Divyansh_Kasana","date":"October 16, 2025","format":false,"excerpt":"Company Overview Incorporated in 1999, HDFC Asset Management Company (HDFC AMC) is one of India\u2019s leading asset management companies, providing fund management services across a broad range of mutual fund and portfolio management schemes for individual and institutional clients. Presenting below its Q2 FY26 Earnings Results. Q2 FY26 Earnings Results\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"HDFCAMC Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HDFAMC.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HDFAMC.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HDFAMC.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HDFAMC.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HDFAMC.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HDFAMC.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":142585,"url":"https:\/\/alphastreet.com\/india\/uti-amc-q3fy23-net-profit-drops-by-53-per-cent\/","url_meta":{"origin":157700,"position":4},"title":"UTI AMC Q3FY23 net profit drops by 53 per cent","author":"Chirag Gupta","date":"February 23, 2023","format":false,"excerpt":"UTI Asset Management Company fell 1.65% to INR 730.15 after the asset manager reported 53% drop in consolidated net profit to INR 60 crore in Q3 FY23 from INR 127 crore in Q3 FY22. Total revenue from operations fell by 5% YoY to INR 295 crore during the quarter. Total\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"earnings preview","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-preview-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":139157,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-hdfc-amc-limited-for-q3-fy23\/","url_meta":{"origin":157700,"position":5},"title":"Earnings Summary Of HDFC AMC Limited For Q3 FY23","author":"Hardik Bhandare","date":"January 25, 2023","format":false,"excerpt":"HDFC AMC Limited (NSE: HDFCAMC) has reported its financial results for the second quarter of the fiscal year 2023. The company's Revenue for the quarter was \u20b9559.56 crore, representing an increase of 2.7% compared to the same period in the previous year. The Consolidated Net Profit for the business remained\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/01\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/157700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=157700"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/157700\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=157700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=157700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=157700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}