As HDFC AMC derives 75% of its operating income from equity MFs, weakness in AUM growth will hinder profitability HDFC Asset Management Co.
Ltd’s Q4 figures have fallen far short of analysts’ expectations. Given the dire weakness in its equity assets under management (AUM), the climb in the future is likely to be uphill.
Shares of HDFC AMC have fallen about 25% from their highs in February, more or less mimicking the drop in the broader market.
While the quarter’s average AUM stood at ₹3.7 trillion, the sharp slide in the market saw the AUMs decline to ₹3.2 trillion by the end of the quarter.