HDFC AMC 2023-24 Annual Report Analysis

Fri, 5 Jul

HDFC AMC has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

HDFC AMC Income Statement Analysis

• Operating income during the year rose 19.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 75.7% in FY24 as against 74.6% in FY23.
• Depreciation charges decreased by 1.9% and finance costs decreased by 6.2% YoY, respectively.
• Other income grew by 83.3% YoY.
• Net profit for the year grew by 36.5% YoY.
• Net profit margins during the year grew from 65.7% in FY23 to 75.2% in FY24.

HDFC AMC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	21,668	25,844	19.3%
Other income	Rs m	3,159	5,790	83.3%
Total Revenues	Rs m	24,827	31,634	27.4%
Gross profit	Rs m	16,172	19,574	21.0%
Depreciation	Rs m	533	523	-1.9%
Interest	Rs m	97	91	-6.2%
Profit before tax	Rs m	18,701	24,750	32.3%
Tax	Rs m	4,467	5,323	19.2%
Profit after tax	Rs m	14,234	19,427	36.5%
Gross profit margin	%	74.6	75.7
Effective tax rate	%	23.9	21.5
Net profit margin	%	65.7	75.2

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

HDFC AMC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 18.1%.
• Current assets rose 19% and stood at Rs 68 billion, while fixed assets fell 11% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 76 billion as against Rs 65 billion during FY23, thereby witnessing a growth of 16%.

HDFC AMC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	59,965	69,172	15.4
Current Liabilities	Rs m	2,193	2,591	18.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	65,361	75,539	15.6
Current assets	Rs m	57,383	68,459	19.3
Fixed Assets	Rs m	7,978	7,079	-11.3
Total Assets	Rs m	65,361	75,539	15.6

HDFC AMC Cash Flow Statement Analysis

• HDFC AMC's cash flow from operating activities (CFO) during FY24 stood at Rs 16 billion, an improvement of 40.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 150.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -11 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 59 million from the Rs 26 million net cash flows seen during FY23.

HDFC AMC Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	11,494	16,147	40.5%
Cash Flow from Investing Activities	Rs m	-2,168	-5,422	-
Cash Flow from Financing Activities	Rs m	-9,299	-10,662	-
Net Cash Flow	Rs m	26	59	126.6%

Current Valuations for HDFC AMC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 91.0, an improvement from the EPS of Rs 66.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,221.9, stands at 46.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.0 times, while the price to sales ratio stands at 34.9 times.
• The company's price to cash flow (P/CF) ratio stood at 30.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	101.5	121.1
TTM Earnings per share	Rs	66.7	91.0
Diluted earnings per share	Rs	66.6	91.0
Price to Cash Flow	x	24.7	30.9
TTM P/E ratio	x	25.6	46.4
Price / Book Value ratio	x	7.3	8.9
Market Cap	Rs m	434,799	616,019
Dividends per share (Unadj.)	Rs	48.0	70.0

Ratio Analysis for HDFC AMC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 26.4x during FY24, from 26.2x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 273.3x during FY24, from 194.0x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 28.1% during FY24, from 23.7% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 35.9% during FY24, from 31.3% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 25.8% during FY24, from 21.9% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	26.2	26.4
Debtors’ Days	Days	3	2
Interest coverage	x	194.0	273.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.9	25.8
Return on equity	%	23.7	28.1
Return on capital employed	%	31.3	35.9

To see how HDFC AMC has performed over the last 5 years, please visit here.

HDFC AMC Share Price Performance

Over the last one year, HDFC AMC share price has moved up from Rs 2,294.4 to Rs 4,221.9, registering a gain of Rs 1,927.5 or around 84.0%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for HDFC AMC and quarterly results for HDFC AMC)