HDFC AMC Q4FY23 PAT up 9.5% at Rs376cr on moderate growth in top line

HDFC AMC Ltd reported 9.79% growth in revenues for the March 2023 quarter at Rs637.81 crore. Quarterly revenues were sequentially lower by 3.79%. Full year top line revenues were up 2.05% at Rs2,483 crore. There was a sharp fall in commission outgo in Q4FY23.

Net profits for the quarter were up 9.5% at Rs376.20 crore while the sequential growth in net profits was at 1.84%. On a full year basis for the fiscal year FY23, the net profits were up just 2.2% at Rs1,424 crore. Fee income growth in terms of the total expense ratio of the fund has been tepid due to slow growth in AUMs and lower TERs charged.

Financial highlights for Mar-23 compared yoy and sequentially

 HDFC AMC    

Rs in Crore

Mar-23

Mar-22

YOY

Dec-22

QOQ

Total Income (Rs cr)

₹ 637.81

₹ 580.93

9.79%

₹ 662.93

-3.79%

Operating Profit (Rs cr)

₹ 491.78

₹ 442.65

11.10%

₹ 500.72

-1.79%

Net Profit (Rs cr)

₹ 376.20

₹ 343.55

9.50%

₹ 369.40

1.84%

 

 

 

 

 

 

Diluted EPS (Rs)

₹ 17.63

₹ 16.10

 

₹ 17.31

 

OPM

77.10%

76.20%

 

75.53%

 

Net Margins

58.98%

59.14%

 

55.72%

 

 

The operating profit margins were marginally better in Q4FY23 at 77.10% compared to the year ago quarter and the sequential quarter. However, while the net margins were better than the sequential net margins, they were lower than the year ago net margins, albeit by a very small margin of just about 16 basis points.

For the fiscal year FY23 ending March 2023, the board has recommended final dividend of Rs48 per share on a face value of Rs5 per share. That works out to a dividend yield of 2.7%. In the last couple of years, AMCs have seen pressure on fee income due to greater focus on passive funds over active funds in terms of AUM growth.

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