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Yes Securities Report
Aditya Birla Sun Life AMC Ltd.'s revenue from operations at Rs 2,970 million was down -5.4%/-8.2% QoQ/YoY, as against a sequential quarterly average asset under management de-growth of -2.3% QoQ.
Share of Equity in AUM (including hybrid funds) at 42% was down -58 basis points QoQ but up 106 bps YoY (calculated on rounded off figures).
Share of B-30 in AUM at 16.8% was down -20 bps QoQ but up 87 bps YoY.
Share of mutual fund distributors, banks, national distributors and direct was 32%, 9%, 18% and 41%, respectively in overall AUM (excluding-ETF).
Operating profit margin for the quarter, at 53.2%, was down -511 bps QoQ and -735 bps YoY.
There has been market share loss in the equity segment mainly due to lower participation from high net-worth customers: There have also been outflows in three funds viz. the small and midcap fund, the ELSS and large and midcap fund. There have been changes in the FM responsibilities in these funds and then, the funds have stabilized.
However, as per management, it is more of a low participation issue than a redemption issue.
The material rise in expenses on sequential basis was driven by the New Fund Offer in the Multi Asset Allocation segment: There were also some infrastructure expenses due to the opening of new branches. There were also some BAU expenses related to travel and marketing that were higher. The total operating expense stood at Rs 1,390 million, up by 8.9% YoY and 6.2% QoQ.
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