HDFC AMC Q1 Results Review - Equity Market Momentum Remains Key Driver: Yes Securities

Yes Securities Report

Due to one-offs, the Q4 revenue yield was subdued for HDFC Asset Management Company Ltd. and hence Q3 yield is more comparable, where the revenue yield was 48 basis points. Hence, on a comparable basis, yield has declined in Q1 due to the launch of a largish NFO and the usual telescopic pricing.

The employee cost for Q1 has increased by 20% YoY, driven by increase in headcount, annual increments and additional spends on building alternatives business. The other operating cost for Q1 has increased by 28% YoY, driven by an increase in general business, new NFO during the quarter, KYC related expenses and outsourcing expenses.

The management has guided that the total opex would grow by 12-15% YoY in FY25.

We maintain ‘Add’ rating on HDFC AMC with a revised price target of Rs 4750.

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