NEW DELHI: HDFC Asset Management Company (AMC) on Thursday posted a 3.62 per cent year-on-year (YoY) rise in net profit at Rs 302.36 crore for the quarter ended June 30. It had posted a net profit of Rs 291.79 crore in the corresponding quarter last year.
Fall in total expenditure mainly supported the bottomline of mutual fund house during the quarter under review. It posted a 43.52 per cent YoY dip in total tax expenditure at Rs 78.01 crore in Q1FY21 over Rs 138.13 crore in the same period last year.
On the other hand, total income of the company declined 11.11 per cent YoY to Rs 491.31 crore during the April-June period.
“Since the revenue of the company is ultimately dependent on the value of the assets under management (AUM) it manages, changes in market conditions and the trend of flows into mutual funds may have an impact on its operations. Since the situation is still evolving and it seems likely that there will be a material impact on the economy, the effect on the operations of the company may be different from that estimated as at the date of approval of these financial results,” HDFC AMC said in a release.
Shares of the company traded 0.32 per cent higher at Rs 2,496 after the announcement of Q1 results, while the benchmark BSE Sensex was up 0.60 per cent at 38,098.