HDFC Asset Management Company has reported a 26 per cent increase in its March-quarter net profit at ₹316 crore against ₹250 crore logged in the same period last year, on the back of a jump in overall income.

Revenue from operations were up six per cent to ₹503 crore (₹476 crore). The Board of Directors have proposed a final dividend of ₹34 per equity share for the year-ended March 31, 2021.

AUMs rise

The assets under management (AUM) of the fund house was up 24 per cent the in the March quarter at ₹3.95 lakh crore (₹3.19 lakh crore). However, its overall market share fell to 12.6 per cent (14.3 per cent).

Equity AUM increased 38 per cent to ₹1.65 lakh crore (₹1.20 lakh crore) while market share fell to 12.9 per cent to 14.7 per cent.

Debt AUM was up 46 per cent to ₹1.52 lakh crore (₹1.05 lakh crore) while liquid assets were down 26 per cent ₹63,800 crore (₹86,700 crore).

Inflows through systematic investment plan were down eight per cent at ₹1,040 crore (₹1,130 crore) as most of the investors who stopped their SIPs during the outbreak of first wave of Covid pandemic failed to re-enter the market.

The number of active individual accounts fell five per cent to 8.86 million (9.34 million).

HDFC AMC ranked the second largest in beyond top 30 cities with a market share of 12 per cent followed by ICICI MF with 11 per cent share.

Pandemic effect

An accelerated increase in Covid cases has necessitated the imposition of restrictions which may once again inhibit economic activity and affect markets, the fund house said adding that the extent of impact of the second wave of Covid pandemic will depend on ongoing and future developments, which at this juncture are highly uncertain.

While it is expected that economic activity will improve once restrictions are eased, the situation will have to be closely monitored till the pandemic is put to rest, it said.

The fund house has reserves of ₹4,753 crore with 88 per cent invested in mutual funds.

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