In-line operational performance for HDFC AMC

HDFC AMC reported an operating profit of ₹710 crore for the quarter, which was largely in line with our estimate.

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Other income was higher at ₹120 crore (vs our estimate of ₹70 crore). As a result, PAT stood at ₹640 crore (+18% y-o-y, flat q-o-q), 8% above our estimate. Its quarterly average assets under management (QAAUM) declined by 1.7% q-o-q (vs growth of 3.7% q-o-q in Q3), largely led by a 3.2% q-o-q decline in equity AUM. Operating revenue yields declined marginally, by 1bp q-o-q, to 46.6bps as higher-yielding equity AUM (% of overall AUM) moderated to 62% (-100bp q-o-q). Management highlighted that the NRC (nomination and remuneration committee) has approved a new ESOP scheme of 2.5 million shares with a vesting period of