HDFC AMC has recorded profit of Rs 352 crore in October-December 2019, as against Rs 243 crore in the corresponding period last fiscal, a growth of 45%, says a press release issued by the company.
Higher total income coupled with reduced expenses incurred on distribution has helped the fund house report strong earnings.
The AMC’s total income rose to Rs 592 crore in Oct-Dec 2019, from Rs 533 crore in the corresponding period of 2018.
Meanwhile, total expenses reduced by 23% to Rs 126 crore in the December quarter of 2019 from Rs 164 crore in the corresponding period of 2018. This was largely because of a sharp drop in fees and commission that declined to Rs 7 crore from Rs 53 crore in the corresponding period of 2018.
Another factor that has contributed to the profit is the introduction of corporate rate tax cut. In October-December 2019, total tax expenses reduced to Rs 113 crore from Rs 125 crore in the corresponding period last fiscal.
On a quarterly basis, profit after tax of the AMC reduced to Rs 352 crore from Rs 368 crore in July-September 2019.
