- 15 Jan 2025
- ICICI Securities
HDFC AMC REPORTED A HEALTHY MIX OF Q3FY25 RESULT
News: HDFC AMC reported a healthy mix of Q3FY25 result. PAT grew 30.8% YoY to Rs 641 cr despite other income declining 34.5% YoY, 54.4% QoQ to Rs 93 cr owing to MTM impact of its equity investments. AUM grew 35% YoY, 1% QoQ to Rs 7.8 tn as on Q3FY25 with company marginally improving market share from 11.5% to 11.6%. High yielding equity mix continues to maintain healthy proportion of 66.0% vs industry average of 58.7%. Revenue growth was healthy at 39% YoY to Rs 934 cr supported by AUM growth and marginal improvement in yields. EBITDA growth was healthy at 50% YoY, 8.6% QoQ to Rs 764 cr with strong EBITDA margin of 81.7%. PAT as % of AUM was strong at 33 bps.
Views: The company is maintaining its market share esp. on higher yielding equity side despite its larger size and intensifying competition. Multi-channel distribution network, high equity mix, better profit margins and its parentage shall enable it to command better relative valuation. Going ahead, synergy benefits of HDFC Bank’s network shall aid the company to capture the under-penetrated Indian MF market.
Impact: Positive