HDFC AMC has recorded 12% growth in its net profit (PAT) to Rs.338 crore in Jul-Sep as against Rs.302 crore net profit in the preceding quarter i. e. Apr-Jun.
An analysis of earnings of the fund house shows a sharp 42% rise in other income. This includes the company's income from various investments. Other income of the AMC stood at nearly Rs 114 crore in the September quarter, as against Rs 80 crore in the June quarter.
Another factor that has helped the company improve its bottomline is the reduction in its expenses. The fund house’s total expenses declined by 3% to Rs.107 crore as against Rs.111 crore in Apr-Jun.
The company said that the impact of this pandemic would not be material on its business in coming quarters. However, this will depend on how effectively the spread of the pandemic is controlled.
"It is expected that economic activity will continue to improve as the residual restrictions are eased. The company has assessed the impact of the pandemic on its operations and its assets including the value of its investments and trade receivables as at September 30, 2020. The management does not, at this juncture, believe that the impact on the value of the company's assets is likely to be material,” HDFC AMC noted in its presentation.
On a year on year basis, HDFC AMC witnessed its PAT decline by 8%. The company had seen a net profit of Rs 368 crore in the corresponding quarter last year i. e. In Jul-Sep 2019. This was primarily on the basis of higher tax outgo as against last year.
