PL First Cut – HDFC AMC Q2FY24 – Gaurav Jani – Research Analyst, Prabhudas Lilladher Pvt Ltd

HDFC AMC Q2FY24 – Strong quarter with beat on revenue on revenue; tax rate normalises

◼️QAAuM was largely in-line at Rs5248bn (PLe Rs5256bn) growing by 8.1% QoQ

◼️However, revenue was higher by 4.1% to PLe at Rs6.43bn (PLe Rs18bn) led by increase in equity share QoQ

◼️Equity + balanced share enhanced from 51.8% to 55.1% QoQ while that of liquid declined by 2.8% to 13.1%

◼️Hence annualised yields were ahead at 49bps (PLe 47bps)

◼️Opex was a miss at Rs1.76bn (PLe Rs1.69bn) due to other opex. ESOP cost was Rs131mn for Q2’24

◼️Led by revenue beat, operating income was higher at Rs4.67bn (+4% ahead of PLe) resulting in operating yields at 35.6bps (PLe 34.2bps)

◼️Other income was largely in-line at Rs1.22bn (PLe Rs1.2bn)

◼️Tax expense that was lower last quarter at 16.4% normalised to 25.7%

◼️Hence core PAT yields declined QoQ by 2bps but were in-line with PLe.

◼️PAT was 1.2% ahead of PLe at Rs4.38bn

◼️The stock trades at 34x FY25E core EPS.