UTI AMC Q2FY24 earnings: Net profit drops 9% to ₹183 crore; AUM up 16.89%
UTI Asset Management Company released its Q2FY24 earnings today, reporting a 9% decline in its consolidated net profit to ₹183 crore compared to the net profit of ₹200 crore recorded in the same period of last year. Seen sequentially, the net profit came in lower by 22%.
The consolidated revenue from operations stood at ₹404.06 crore in Q2FY24, down from ₹435 crore recorded in Q2FY23 and ₹467.77 crore delivered in the preceding June quarter. Taking this into account, revenue fell 13.6% on a YoY basis and 7% on a QoQ basis. The company’s core income came in at 292 crore, up by 3% on a QoQ basis.
For the quarter ended September 30, 2023, UTI MF’s average assets under management improved by 14.22% YoY to ₹2,66,813 crore, while the total assets under management (AUM) stood at ₹16,89,318 crore, an improvement of 16.89% compared to the total AUM of ₹14,45,172 crore reported in the same period last year.
During the quarter, equity-oriented assets contributed 75% to UTI MF’s total quarterly average AUM. Its SIP AUM increased by ₹5,976 crore, or 29.06%, from ₹20,565 crore in Q2 FY23 to ₹26,541 crore in Q2 FY24.
Digital purchase transactions increased by 9.43% in Q2 FY24 as against the quarter ended June 30, 2023, to 31.09 lakh transactions. Digital channels contributed 41.8% to total new purchase transactions, the company said in its earnings report.
Commenting on the performance, Imtaiyazur Rahman, Managing Director and Chief Executive Officer, UTI Asset Management Company Limited, said, “The Indian mutual fund industry has constantly worked towards building financial literacy in the country for creating awareness about various products and in enabling investors to take informed investment decisions.
“With our growing geographical and digital reach in the country and our expertise in investment management combined with large suite of products, UTI is well placed to capitalize on the opportunities offered by the markets.”
As of Q1FY24, State Bank of India, Bank of Baroda, and Life Insurance Corporation of India held 9.97% share capital each in UTI AMC. Punjab National Bank has a 15.21% stake in the company, Trendlyne data showed.
The stock closed 0.52% higher at ₹807.15 apiece today.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint.
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Updated: 18 Oct 2023, 05:31 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.