that’s a phenomenal number, if you look at sales conversion metrics. A PSU beating private sector by at least 2X. Sure they can force it on illiterate people or make it mandatory tie-in (they tried this with me in SBI) but still excellent numbers
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When RBI says, it’s a Solid proof.
A big crash will decide it’s sustainability.
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HDFC AMC came out with great results.
Capital Market plays should do well given the low base. I also see many plays where the market share has gone down in AMC world can revive their respective market shares.
PSU sponsored AMCs stand a good chance to revive plus AMCs with ETF also stand well.
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strong numbers in the Dec 2024 quarterly results https://www.bseindia.com/xml-data/corpfiling/AttachLive/13254dd0-b3af-4caf-801f-abf7e35ab350.pdf
May I know how the other income is calculated, especially the MTM component?
Is SEBI’s restrictions on FNO causing HDFC AMC to perform well? Instead of retailers money loss in FNO gamble, may be money is now flowing more into MF.
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ah this is an interesting question…i was previously thinking that as month on month we are breaking sip inflow records, all or most AMCs will show good results …but as you said sebi restrictions on fno might have indeed contributed to this
The results are mostly Flat on a QoQ basis in line with the broader markets. The good part is that the AUM and Market share has slightly increased despite fall in AUM at an industry level.
I feel, the valuations will depend on the company maintaining the operating margin at ~36 bps of AUM. Then only the benefit from growth in AUM will flow to the bottom line.
P.S - Invested. Waiting for company to move aggressively into non MF Asset Management space.
Since you are invested and done your due diligence on the company, I am curious on your thoughts on these two questions
- What do you think are the scenarios in which HDFC AMC might not be able to maintain their ~36 bps of AUM operating margin
- Why do you think HDFC will move aggressively into non-MF AMCs?
Disc: Not invested, tracking
- The operating margin might come down due to SEBI mandate, higher adoption of index funds with low Expense ratio.
- The company has been investing in PMS and alternatives side as per the con call. However the number there presently are too small to quote separately.
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Thanks for the reply. Which SEBI regulation(s) regarding mutual funds are you referring to?
Q3’25 Results update
Results are excellent YoY as expected as the company had rationalized distributors’ commission in Aug’24.
Operations wise the company had minor loss of share in Equity AUM and SIP flows, which as the MD said “don’t look much into it”. I also agree with him.
Company looks great from a long term view, the only risk being sustained bear market.
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April AAUM crosses 8 lakh crores for HDFCAMC (9 lakhs for ICICI)
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ICUCI Mutual Funds to be listed soon.. good news for AMC sector I guess
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