IGI Logo

Result Highlights

* Revenue: Revenue from operations at Rs 3,140mn was up/down 1.0%/-6.1% QoQ/YoY, as against a sequential QAAUM de-growth of -0.3% QoQ

* Share of Equity in AUM: Share of Equity in AUM (including Hybrid funds) at 43% was up 46 bps QoQ and 182 bps YoY (calculated on rounded off figures)

* Share of B-30 in AUM: Share of B-30 in AUM at 17% was up 70 bps QoQ and 112 bps YoY

* Channel mix: Share of MFDs, Banks, NDs and Direct was 32%, 9%, 18% and 41%, respectively in overall AUM (Ex-ETF)

* Operating profit margin: Operating profit margin for the quarter, at 58.3%, was down -27 bps QoQ and -1355 bps YoY

Our view – Management awaits healthier flows into non-liquid debt funds

While non-liquid debt funds managed to grow 1% QoQ, they were still down -20% on YoY basis: Management conceded that "real" flows are yet to start to come into longduration debt funds. They stated that, once interest rates in the system stabilize, mutual funds will again become more attractive than bank deposits. Management stated that the company has positioned itself with fixed income products to capture flows from both retail and institutional debt investors, as and when the flows start to come in.

Overall calculated revenue yield managed to inch up ~1 bps QoQ, while remaining stable on YoY basis: On a QoQ basis, the share of domestic equity funds inched up 44 bps to 41.0% in overall group AUM. Similarly, the share of domestic fixed income funds inched up 39 bps QoQ to 36.9%.

We maintain ‘ADD’ rating on ABSL AMC (ABSL) with a revised price target of Rs 470: We value ABSL at 20x FY24 P/E. The FY22-25E EPS CAGR is 5.3%.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://yesinvest.in/privacy_policy_disclaimers
SEBI Registration number is INZ000185632

Above views are of the author and not of the website kindly read disclaimer