HDFC AMC has reported a 5% growth in its net profit (PAT) at Rs.369 crore in the December quarter of this financial year. In the corresponding quarter last year, the company reported net profit of Rs.352 crore.
An analysis of earnings of the fund house shows that revenue from operations has declined but increase in the company’s income from investments and reduction in expenses helped the AMC improve its profit after tax.
The company’s revenue declined by 8% to Rs 482 crore in December quarter as against Rs 525 crore in Oct-Dec in the corresponding quarter last year.
The company witnessed a sharp 68% rise in other income. This includes the company's income from investments. Other income of the AMC was Rs 113 crore in the December quarter, as against Rs 67 crore lasts year.
Another factor that has helped the company improve its bottomline is the reduction in its expenses. The fund house’s total expenses including tax outgo declined by 6% to Rs 226 crore as against Rs 239 crore in Oct-Dec 2019.
