HDFC AMC Posts Strong Q4 Results with 43.77% Jump in Net Profit

HDFC Asset Management Company (AMC) reported a robust 43.77% year-over-year increase in consolidated net profit to Rs 540.84 crore for the fourth quarter of fiscal year 2024. The company's revenue also climbed 28.55% to Rs 695.43 crore during the same period, reflecting strong growth across key metrics.

For the full fiscal year 2024, HDFC AMC's net profit surged 36.48% to Rs 1,942.69 crore, while revenue rose 19.27% to Rs 2,584.37 crore. The asset management company's board recommended a dividend of Rs 70 per share, rewarding shareholders for the strong performance.

Why this matters: HDFC AMC's impressive results highlight the resilience and growth potential of India's asset management industry. The company's ability to deliver strong profits and revenue growth amid market challenges emphasizes its robust business model and effective investment strategies.

HDFC AMC also demonstrated improved operational efficiency, with its return on equity rising to 29.5% in FY24 from 24.5% in the previous year. However, the company's shares closed 1.73% lower at Rs 3,707.15 on the BSE following the results announcement, and its market capitalization decreased to Rs 79,141 crore.

Commenting on the results, HDFC AMC's CEO stated, "Our strong performance in Q4 and FY24 reflects the trust placed in us by our investors and the dedication of our team. We remain committed to delivering superior investment solutions and creating long-term value for our stakeholders."

Key Takeaways

• HDFC AMC reported 43.77% YoY increase in Q4 FY24 net profit to Rs 540.84 crore.
• HDFC AMC's FY24 net profit surged 36.48% to Rs 1,942.69 crore, revenue up 19.27%.
• HDFC AMC's board recommended a dividend of Rs 70 per share for strong performance.
• HDFC AMC's return on equity improved to 29.5% in FY24 from 24.5% in the previous year.
• HDFC AMC's shares closed 1.73% lower at Rs 3,707.15 on the BSE post results announcement.