HDFC AMC Q1 results: Net profit rises by 42%, shares trade 4% higher

Country's largest mutual fund manager, HDFC AMC has reported a 42% rise in net profit for the first quarter this fiscal. The profits are majorly driven by an upside jump in assets under management. June quarter's net profit jumped to Rs 291.79 crore as against Rs 205.26 in Q1 last year. While the total income of the company rose to Rs 552.75 crore as compared by Rs 501.19 crore on QoQ basis, according to the BSE. 

Seeing the positive results, Dalal Street took it with both hands, as the shares traded 4% higher. The shares of HDFC AMC shares closed at Rs 2,012 on BSE on Tuesday. 

The company witnessed 18% rise in AUM or assets under management to Rs 3,56,700 crore, as against Rs 3,01,100 crore in same quarter last year. The company has now 14.7% market share in total AUM of the mutual fund industry. 

Meanwhile AUM in actively managed equity oriented funds i.e. equity oriented total AUM excluding arbitrage funds and index funds grew to Rs 1,68,900 crore as on June 30, 2019 with a market share of 16.2%. 

There was an increase of 10% in the number of live individual accounts from 8.36 million as of June 30, 2018 to 0.92 crore, as of June 30, 2019. 

Read full results here: Source BSE

During the quarter, HDFC AMC decided to provide liquidity arrangement to certain Fixed Maturity Plans (FMPs) of HDFC Mutual Fund, to deal with the illiquidity faced by such FMPs due to their exposure to certain Non Convertible Debentures (NCDs). 

During the quarter, the company has purchased such NCDs amounting to Rs 426.45 Crore at the prevailing valuation yields/prices provided by independent rating agencies. The company has additionally purchased NCDs amounting to Rs 33.26 Crore on July 01 , 2019. 

As far as the share prices are concerned the stock closed at the day high price of Rs 2,012 on BSE and Rs 2,012.70 on NSE.