HDFC Asset Management Company has reported four per cent increase in June quarter net profit at ₹302 crore against ₹292 crore logged in the same period last year, largely due to lower expenses and drop in tax outgo.

Income from operations was down 18 per cent at ₹411 crore (₹504 crore) as Covid crisis forced many investors to pause investments especially through systematic investment plan. Total expenses were down at ₹111 crore (₹123 crore) as fee and commission paid was down at ₹1 crore (₹11 crore) while tax outgo dipped to ₹78 crore (₹138 crore).

Asset dips

Quarterly average asset under management was dropped two per cent at ₹3.56 lakh crore (₹3.62 lakh crore). Equity-oriented QAAUM was down 21 per cent at ₹1.29 lakh crore (₹1.64 lakh crore) while equity AUM fell 18 per cent to ₹1.38 lakh crore (₹1.69 lakh crore). HDFC AMC had a cash reserves of ₹4,221 crore as of June quarter.

Investments through systematic investment plan dropped 24 per cent in June quarter to ₹960 crore against ₹1,270 crore logged in the same period last year.

The company has assessed the impact of Covid pandemic on its operations and its assets including the value of its investments and trade receivables as of June 30.

The revenue of the company is ultimately dependent on the value of the AUM, which changes according to market conditions and the trend of investment flows may have an impact on the operations. The company continues to closely monitor material changes in markets and future economic conditions, it said.

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