HDFC AMC
Started in 1999 and set up as a joint venture between HDFC and Standard Life Insurance, HDFC AMC is today one of India’s largest and most profitable mutual fund manager with over Rs. 4.1 trillion as assets under management.
The company offers a comprehensive suite of savings and investment products across asset classes, which provide income and wealth creation opportunities to their large retail and institutional customer base of 9.1 million live accounts. Their strength lies in their diversified product offerings that cater to the needs of the average Indian household.
The company recently released their financial results for Quarter 4 (Jan-March) of the FY21 and the following observations can be made from the same.
Their revenue from core operations have increased in comparison not only to the same quarter of last year but also the last quarter of FY21. This shows the resilience of the company even during the pandemic. Although the Total Revenue, which is inclusive of income from other sources, took a hit this quarter. This led to a fall of around 14% in PAT compared to the PAT of the Q3. However, note must be taken of the fact that the PAT did increase by around 26% compared to the same quarter of the previous year. This reflects in the increase in EPS, from Rs. 11.74 to Rs. 14.84, when looking at both the quarters together.
The overall assets of the company have also maintained their upslope trend and now stand at Rs. 5,094 crores.
Yet the company must pay special attention to their cash inflows as this year there was a net cash outflow of Rs. 24 crores which could be worrisome news for the business.
Overall the company has shown good and applause-worthy results for Q4 of FY21.
