HDFC AMC Q3FY25 preview: PAT likely to grow 22.6% YoY; combination of higher equity to help net income

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HDFC AMC Q3FY25 preview: PAT likely to grow 22.6% YoY; combination of higher equity to help net income

The asset management arm of the HDFC group – HDFC Asset Management Company (HDFCAMC) is expected to release its earnings for the October-December quarter on Tuesday (January 14). Zee Business Research expects the company to maintain strong performance during the reporting quarter.

During the October-December period, the profit after tax or PAT for the company is seen to rise by 22.6 percent year-on-year (YoY) to Rs 600 crore as against Rs 489 crore in the same period last year. Revenue, however, is expected to come in at Rs 900 crore as against Rs 671.3 crore, marking an increase of 34 per cent over the corresponding period last year.

Further, equity AUM in the company is expected to increase by 48 percent during the quarter under review.

“the regulator changed the TER methodology and AUM slabs from 1st April 2019. Since then our equity AUM has almost tripled. It was around INR 1,600 billion odd and now it is around INR billion 4,800,” the company’s management said in its Q2FY25. revenue call.

Analysts added that the company’s overall revenue will be helped by the high amount of equity in the company’s overall portfolio mix. In the last quarter ended September, the company’s net income was recorded at Rs 1,057.9 crore.

Apart from that, there is an opinion that due to MTM fluctuations, other income at AMC during the review period may decrease by 37 percent per annum.

An important observation

Participants will notice new asset classes, fund launches and distributor commission payout figures.

HDFC AMC Q2FY25 performance

HDFC Asset Management Company’s net profit rose 32.09 percent to Rs 576.61 crore in the quarter ended September 2024 as against Rs 436.52 crore in the previous quarter ended September 2023. against Rs 643.08 crore in the previous quarter ended September 2023. .