L&T and Kotak AMC record highest growth in profit in percentage terms

An analysis of 36 AMCs shows that in terms of percentage of profit growth, L&T MF and Kotak MF were the top two fund houses in FY 2018-19.

In FY 2018-19, L&T MF’s profit after tax grew by 489% to Rs 88 crore from Rs 15 crore in the preceding fiscal. During the same period, Kotak AMC’s PAT rose by 182% to Rs 229 crore from Rs 81 crore in FY 2017-18.

Further analysis shows that most AMCs recorded a rise in their net profit. Of the 36 AMCs, 20 have recorded an increase in their net profit, nine registered a decline in net profit and seven incurred a loss in FY 2018-19.

Recent regulatory changes such as banning of upfront commission and asking AMCs  pay commission from the scheme’s book instead of the AMC’s book have helped AMCs reduce their expenses incurred on distribution commission.

In absolute terms, HDFC, ICICI Prudential, Nippon India, Aditya Birla Sun Life and SBI were among the most profitable AMCs in FY 2018-19. While the top four retained their spot, SBI MF pipped UTI MF to become the fifth most profitable AMC in FY2018-19.

While SBI MF’s profit grew to nearly Rs 429 crore from Rs 335 crore, UTI MF’s profit increased to Rs 348 crore from Rs 341 crore.  

HDFC AMC’s profit after tax for FY 2018-19 stood at Rs 930.60 crore. Next in the list were ICICI Prudential AMC with profit of Rs 613.79 crore, Nippon India AMC with Rs 487.07 crore and Aditya Birla Sun Life with Rs 448.86 crore.

Table 1 – Most profitable AMCs in absolute terms

Table 2 – Most profitable AMCs in percentage terms  

Note – This analysis does not include profit of Franklin Templeton AMC, Invesco AMC, Quantum AMC, ITI AMC and Sahara AMC as their data was not available. For Mirae Asset AMC, the data taken is of December 2018 and December 2017.