The fee and commission expense for Q1 of this fiscal stood at Rs 11.36 crore, a drop of 86.5%, taking the total expenses to Rs 122.83 crore against Rs 206.55 crore in the corresponding previous quarter.
HDFC Asset Management Company (AMC) posted a 42% rise in the June quarter profits to Rs 291.79 crore, aided by lower fees and commission expenses and higher other income. The revenue from operations for the last quarter stood at Rs 504.39 crore, a rise of 7% compared with Rs 471.23 crore in the corresponding previous quarter.
The fee and commission expense for Q1 of this fiscal stood at Rs 11.36 crore, a drop of 86.5%, taking the total expenses to Rs 122.83 crore against Rs 206.55 crore in the corresponding previous quarter. Operating profit from core asset management business was Rs 381.5 crore against Rs 264.7 crore for the quarter ended June 30, 2018, a rise of 44%.
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During the quarter, the fund houses had decided to provide liquidity arrangement to certain fixed maturity plans (FMPs) of HDFC Mutual Fund, to deal with the illiquidity faced by such FMPs due to their exposure to certain non-convertible debentures (NCDs). “The liquidity arrangement entailed acquisition of such NCDs by the company from these FMPs. Consequently, during the quarter, the company has purchased such NCDs amounting to Rs 426.45 crore at the prevailing valuation yields I prices provided by independent rating agencies,” the firm said in an exchange filing.
Total assets under management (AUM) of Rs 3.56 lakh crore as of June 30, 2019 against Rs 3.01 lakh crore as on June 30, 2018 — a growth of 18%.