HDFC AMC Q4 profit rises 9%, declares dividend of ₹48

HDFC Asset Management Company Limited (HDFC AMC), a subsidiary of HDFC and the asset management company of HDFC Mutual Fund, has ended the financial year 2022-23 with a single digit growth in its top and bottom line. The board of the company has recommended a dividend of ₹48 per equity share of ₹5 each for the financial year ended March 31, 2023, subject to approval of shareholders at the ensuing Annual General Meeting to be held on June 26, 2023. In the last 12 months, HDFC AMC has declared a dividend of ₹42 apiece.

The asset management company has reported 9.5% growth in its profit after tax (PAT) at ₹376.1 crore for the fourth quarter ended March 31, 2023, as compared to ₹343.5 crore in the same period last year. On the quarter-on-quarter (QoQ), the profit rose by 2% from ₹369.4 crore in Q3FY23.

The revenue from operations rose 5% year-on-year to ₹540.9 crore in Q4FY23, while total income climbed 10% YoY to ₹637.8 crore, aided by 50% growth in other income to ₹96.9 crore. Sequentially,  revenue from operations fell by 3% from ₹559.6 crore in December quarter of 2022, while total income dropped 4% from ₹663 crore in Q3FY23.

During the quarter under review, the total expenses of the company rose 6% YoY to ₹146.1 crore, while it dropped 10% sequentially from ₹162.2 crore in Q3FY23.

The operating profit from core asset management business stood at ₹394.8 crore, up 4% from ₹378 crore in Q4FY22. On QoQ, the profit from core AM business de-grew 1% from ₹397.4 crore in December quarter of 2022.

For the full financial year 2023, HDFC AMC posted a profit at ₹1,423.9, up 2% from ₹1,393.1 crore in the previous fiscal. The revenue from operations rose 2% to ₹2,166.8 crore as compared to ₹2,115.4 crore in the last fiscal.  

In a separate development, the board at its meeting today approved re-appointments of Dhruv Kaji, Jairaj Purandare, Sanjay Bhandarkar, Parag Shah, and Roshni Nadar Malhotra for the second term of 5 consecutive years.

The board of the company also approved grant of 10,50,000 stock options representing 10,50,000 equity shares of ₹5 each to the eligible employees of the company under Employees Stock Option (ESOP) Scheme, 2020. The grant price for the ESOP is ₹1,780.90 per option, at par with closing price of the shares of the company on the NSE on April 24.

Last week, the capital market regulator SEBI approved the proposed change of controlling stake in HDFC AMC to HDFC Bank as part of the scheme of amalgamation of HDFC with HDFC Bank. HDFC AMC was promoted by HDFC Investments and HDFC Holdings, wholly owned subsidiaries of HDFC. As per the proposed merger, both the subsidiaries will be merged with HDFC, which will be further merged with HDFC Bank to create a financial services giant.

Ahead of Q4 earnings, HDFC AMC shares closed 0.73% lower at ₹1,765.90 on the BSE. During the session, the stock hit an intraday high and low of ₹1,785 and ₹1,746.10, respectively.