HDFC AMC Q3FY25 Preview: PAT likely to grow 22.6% YoY; higher equity mix to aid total income

The asset management arm of the HDFC group - HDFC Asset Management Company (HDFCAMC) is slated to release its October-December quarterly earnings on Tuesday (January 14). Zee Business research anticipates the company to stage robust performance during the reporting quarter.

During the October-December period, profit after tax or PAT at the company is seen soaring 22.6 per cent year-on-year (YoY) to Rs 600 crore versus Rs 489 crore during the same period last year. Revenue, however, is projected to come in at Rs 900 crore as compared to Rs 671.3 crore, marking a 34 per cent increase over the corresponding period of the previous year.

Furthermore, equity AUM at the company is expected to rise 48 per cent YoY during the review quarter.

"the regulator had modified the TER methodology and the AUM slabs effective 1st April 2019. Since then our active equity AUM has almost tripled. It was around INR 1,600 billion odd to now almost INR 4,800 billion plus," said the company's management in its Q2FY25 earnings call.

Analysts added that the company's total income will be aided due to the higher proportion of equity in the company's overall portfolio mix. In the previous September-ended quarter, the company's total income was recorded at Rs 1,057.9 crore. 

Besides, there is a view that due to the fluctuation in MTM, other income at the AMC during the review period may decline by 37 per cent on-year.

Key monitorables

Stakeholders will watch out for new asset classes, fund launches and distributor commissions payout figures.

HDFC AMC Q2FY25 performance

Net profit of HDFC Asset Management Company rose 32.09 per cent to Rs 576.61 crore in the quarter ended September 2024 as against Rs 436.52 crore during the previous quarter ended September 2023. Sales rose 37.96 per cent to Rs 887.21 crore in the quarter ended September 2024 as against Rs 643.08 crore during the previous quarter ended September 2023.

HDFC AMC share price performance

The company's scrip in the last one year has zoomed 10.7 per cent as against Nifty's return of just over 5 per cent.