Investment income boosts HDFC AMC net 42% at Rs 292 cr in Q1; assets under management up at Rs 3.56 lakh cr

Mumbai: The country's largest fund house HDFC Asset Management Company on Tuesday reported a full 42 percent jump in net income at Rs 291.7 crore in the June quarter, primarily boosted by investment income as it's the core income from operations inched up only a tad.

The fund house, one of the first to go public with a share sale last fiscal, reported revenue from operations at Rs 504.4 crore, up 7 percent, while other income grew 62 percent to Rs 48.4 crore.

Total income also rose to Rs 552.75 crore in the reporting quarter, as compared to Rs 501.19 crore in the
corresponding quarter a year ago.

Representational image. Reuters.

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Assets under management rose to Rs 3,56,700 crore, a year-on-year increase of 18 percent, the fund house said, stressing that it is much faster than the industry average.

As much as 59.2 percent of its total monthly average assets under management are contributed by individual investors compared to 54.3 percent for the industry, the company said.

Replying to a question on its exposure to companies in the beleaguered Essel group, managing director Milind Barve told reporters in a concall that the investment has been taken at fair value and it has been valued also at the fair value.

The schemes' total exposure was Rs 1,200 crore, he said, adding the fund house has taken a part of that on to
itself.

He, however, declined to comment further on the matter saying that it is a "quasi-judicial" matter now.

It can be noted that the fund house had in June said it would buy back the NCDs worth Rs 500 crore of the Essel group with shareholders' fund—a move that rattled its shares and forcing the regulator SEBI late June to issue strict guidelines ordering fund houses not to engage in any such investor protection measures and also not to enter into any standstill pacts with any companies they have exposures to.

In anticipation of the earnings announced after the market hours, the HDFC AMC counter rallied 3.08 percent to Rs 1,994.30 on the BSE as against the 0.60 percent gains on the benchmark.