The profits of top ten AMCs grew by 29% from Rs. 1,588 crore in FY14-15 to Rs. 2,055 crore in FY15-16, shows an analysis done by Cafemutual.
Franklin Templeton’s results were not available yet as it follows an October - September year for its financial results.
HDFC holds the mantle of being the most profitable fund house. Its profit after tax (PAT) stood at Rs. 477 crore in FY15-16, up 15% from Rs. 415 crore in the previous fiscal. The increase in profitability was due to the healthy growth in its AUM. The fund house saw its AAUM grow by 10% from Rs. 1.61 lakh crore to Rs.1.77 lakh crore during the same period. The fund house has crossed Rs. 2 lakh crore AAUM mark in September 2016 quarter.
PAT of top ten houses
|
AMC |
FY14-15 |
FY15-16 |
Change |
|
HDFC |
415 |
477 |
62 |
|
ICICI Pru |
246 |
325 |
79 |
|
Reliance |
357 |
370 |
13 |
|
Birla Sun Life |
126 |
209 |
83 |
|
UTI |
201 |
232 |
31 |
|
SBI |
163 |
165 |
2 |
|
IDFC |
70 |
110 |
40 |
|
DSPBR |
38 |
77 |
39 |
|
Axis |
8 |
31 |
23 |
|
Kotak |
-36 |
59 |
95 |
|
Total |
1588 |
2055 |
467 |
Source: AMC Website
Reliance AMC was the second most profitable fund house. Its net profit increased from Rs. 357 crore to Rs. 370 crore during the same period, a growth of 4%. Its AAUM increased by 15% from Rs. 1.37 lakh in FY14-15 to Rs.1.58 lakh crore during the same period.
Kotak, Birla Sun Life and ICICI Prudential recorded the highest growth in PAT in absolute terms. Kotak MF’s PAT jumped by Rs.95 crore to Rs. 59 crore in 2015-16. Kotak MF had recorded a net loss of Rs. 36 crore in FY14-15. Birla Sun Life MF’s PAT increased by Rs. 83 crore to Rs. 209 crore in FY15-16 from Rs. 126 crore the previous fiscal. Similarly, ICICI Prudential MF’s PAT increased by Rs. 79 crore from Rs. 246 crore in FY 2014-15 to Rs. 325 crore FY 2015-16.
Overall, all the top AMCs recorded a healthy growth in profits last fiscal.
Fund houses earn from the total expense ratio charged on schemes. Equity funds, which charge higher expenses as compared to debt funds, are more profitable for fund houses. The industry received net inflows of Rs. 1.34 lakh crore in FY14-15. Of this, over 55 % or over Rs. 74,000 crore has come in equity funds, which helped AMCs grow their PAT.
The average assets under management of the industry grew from Rs. 10.82 lakh crore in FY14-15 to Rs. 13.54 lakh crore last fiscal, a growth of 25%.
