PL First Cut - HDFC AMC Q3FY24

PL First Cut - HDFC AMC Q3FY24 – Gaurav Jani – Research Analyst, Prabhudas Lilladher Pvt Ltd

HDFC AMC Q3FY24 – Good quarter with slight beat on revenue yields

◼️QAAuM was a tad lower at Rs5514bn (PLe Rs5538bn) growing by 5.1% QoQ

◼️However, revenue was exactly in-line at Rs6.71bn led by increase in equity share QoQ

◼️Equity + balanced share enhanced by 2.8% 55.1% to 57.9% QoQ while that of debt/liquid declined by 1.5%/1.7% to 23.3%/11.3%

◼️Hence annualised yields were ahead at 48.7bps (PLe 48.5bps)

◼️Opex was largely in-line at Rs1.76bn (PLe Rs1.79bn). ESOP cost was Rs130mn for Q3’24

◼️Led by strong revenue, core income was higher at Rs4.96bn (+0.8% ahead of PLe) resulting in operating yields at 36bps (35.6bps last qtr)

◼️Other income was ahead at Rs1.42bn (PLe Rs1.1bn)

◼️Tax rate was a bit lower at 23.3% compared to 25.7% last qtr.

◼️Hence core PAT yields were a shade better and inched up to 27.6bps from 26.4bps QoQ

◼️PAT was 4.0% ahead of PLe at Rs3.81bn

◼️ Numbers would be upgraded basis MTM in equity and rough cut numbers suggest that the stock trades at 39x/34x on core FY25/26E core EPS.