- 21 Apr 2025
- ICICIdirect Research
HDFC AMC REPORTED STEADY SET OF Q4 RESULT AS EXPECTED
HDFCAMC - 4813 Change: 75.40 (1.59 %)News: HDFC AMC reported steady set of Q4 result as expected. Market share and yields across asset classes was broadly maintained. AUM de-grew 2.8% QoQ to ₹ 7.5 tn, a growth of 24.2% YoY. High yielding equity mix maintained at healthy proportion of 66.8% vs industry average of 58.1%. Revenue yield was down 1 bp QoQ at 46.6 bps partly due to fewer number of days in Q4. EBITDA margin declined ~80 bps QoQ to 81% as topline witnessed de-growth. PAT as % of AUM maintained at industry leading level of 34 bps. Other income recovered from Rs 93 cr to Rs 124 cr QoQ, aided by gains in debt funds owing to fall in yields.
View: Result was broadly in line with expectations. HDFC AMC is holding market share of 11.5% on total AUM alongwith healthy growth in client additions which is noteworthy at its size and considering intensifying competition. It is a play on structural growth in Indian asset management industry with superior operational strength. Going ahead, the stock could be prone to market volatility but current valuations offer favorable risk-reward from medium term perspective.
Impact: Neutral