PL First Cut – UTI AMC Q2FY24

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

UTI AMC Q2FY24 – Core earnings miss led by fall in equity yields; tax rate was also lower

◼️QAAuM came in a tad lower (-0.3%) at R2669bn, +7.6% QoQ

◼️Revenue was a miss at Rs2.91bn (PLe Rs3.01bn) and consol annualised yields were lower at 44bps (PLe 45bps)

◼️MF fees were up by 1.8% QoQ to Rs2.24bn while equity grew by 8.2%

◼️MF yields dipped by ~2bps QoQ driven by ~5bps fall in computed equity yields

◼️Opex was 1.6% lower to PLe at Rs1.86bn largely led by other opex

◼️Operating income at Rs1.06bn was a 5.7% miss to PLe of Rs0.8bn resulting in operating yields at 16bps (PLe 17bps)

◼️Other income was ahead at Rs1.14bn (PLe Rs1.0bn)

◼️Tax rate was lower at 16.8% (PLe 22%) leading to in-line core PAT at Rs880mn (PLe Rs876mn)

◼️PAT was Rs1.83bn (PLe Rs1.66bn) owing higher other income and lower tax rate.

◼️The stock trades at ~15x FY25E core EPS.