HDFC AMC Posts Steady Q3 Results; Margins Expand Sharply

HDFC Asset Management Company reported third-quarter results that were broadly in line with market expectations, supported by steady asset growth and strong margin expansion.

Quarterly average assets under management rose 5.0% quarter-on-quarter to ₹9,240.0 billion, in line with overall industry growth. The company maintained its market position, with equity QAAUM market share edging up 10 basis points to 13.0% from 12.9%.

Revenue increased 4.6% sequentially to ₹10.75 billion. Yields remained flat at 46.5 basis points, beating street expectations of a marginal decline to 46.2 basis points.

Operating profit grew 9.0% quarter-on-quarter to ₹8.76 billion, driven by a 28.0% drop in other expenses and operating leverage. Operating margin expanded by 360 basis points to 81.52%, compared with 77.94% in the September quarter.

Adjusted net profit rose 15.0% sequentially to ₹7.69 billion, aided by lower costs and a 65.0% jump in other income. The number of unique investors increased 6.0% to 15.4 million from 14.5 million in September.