HDFC AMC Q2 Results: Shares of asset manager gain over 5% after all-round beat, margin expansion
HDFC AMC's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹930 crore, also higher than the expectation of ₹888.9 crore, and 9% higher on a sequential basis.
Shares of HDFC Asset Management Company Ltd. gained over 5% on Thursday, October 15, in response to their September quarter results, which were a beat across parameters.HDFC AMC's revenue increased by 6% on a sequential basis to ₹1,170 crore. The poll of analysts from CNBC-TV18 had projected the figure to be ₹1,128.8 crore.Earnings Before Interest, Tax, Depreciation and Amortisation for the quarter stood at ₹930 crore, also higher than the expectation of ₹888.9 crore, and 9% higher on a sequential basis.Net profit for the period was down 11% on a quarter-on-quarter basis to ₹749 crore. This drop in profitability is mainly due to a 73% drop in other income.
Other income is generally the more volatile part of the earnings of an Asset Management Company as it is mainly driven by market movements.Despite the drop in profitability, the number was marginally higher than the poll expectation of ₹708 crore.Shares of HDFC AMC are trading 5% higher on Thursday after the results announcement at ₹2,406.5. With this move, the stock has trimmed its year-to-date losses to 8.5%.This is breaking news and will be updated with more details.
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