InvestorQ : How do you see the HDFC AMC results for the Dec-20 quarter?
shrinidhi Rajan made post

How do you see the HDFC AMC results for the Dec-20 quarter?

1 year ago

HDFC AMC reported 8.17% fall in Dec-20 quarter consolidated revenues on a yoy basis at Rs.481.86 crore on slower flows into mutual funds. For the quarter, the operating profits were down 7.28% at Rs.371.77 crore and it could have been worse had the company not managed its operating other expenses more efficiently.

The Profit after tax for the Dec-20 quarter was up 4.74% at Rs.369.26 crore on higher other income making up for the lower operational revenues. There was clear pressure on flows resulting in weaker revenues. PAT margins expanded from 67.19% to 76.63% in Dec-20. There were also concerns expressed that the poor performance of many its funds may be resulted in tepid flows.

Regarding the sharply higher other income, it must be noted that the other income component includes the notional profits recognized post the fair valuation of non convertible debentures held by the AMC. These NCDs are secured by pledge of equity shares. However, it must be noted that this is just a notional profit that was booked in other income due to falling yields.