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Top 10 AMCs' assets swell 37% in FY17, profit grows 21%

Monday, November 13, 2017

The asset base of top 10 mutual funds rose sharply by 37% in 2016-17 while their profits grew 21%, leaving room for better operating leverage to kick in for most players.

The profit before tax (PBT) of these AMCs (asset management companies) grew by 21% to Rs 4,001 crore in 2016-17, from Rs 3,309 crore in 2015-16, data with the Association of Mutual Funds in India (Amfi) showed.

Moreover, the assets under management (AUM) of the fund houses increased to Rs 14.78 lakh crore at the end of March this year, from Rs 10.76 lakh crore in March-end 2016, registering an impressive growth of 37%.

Among the top players, profitability declined for Kotak Mahindra Mutual Fund (MF), IDFC MF and DSP BlackRock MF, but they witnessed robust growth ranging 16-64% in their asset base.

This indicates that operating leverage is yet to kick in for most mutual fund players.

HDFC AMC emerged as the most profitable fund house in the country during the past fiscal. It reported a 13% rise in its PBT at Rs 800 crore and its AUM climbed 35% to Rs 2.37 lakh crore.

This is followed by ICICI Prudential MF, which posted a profit of Rs 735 crore, a jump of 47% from the preceding fiscal. Its AUM went up by 38% to Rs 2.43 lakh crore.

Reliance MF recorded a 19% increase in its PBT at Rs 592.3 crore while the asset base rose 33% to Rs 2.11 lakh crore. Aditya Birla AMC profit grew just 5% to Rs 335 crore. However, it witnessed a jump of 43% in its AUM to Rs 1.95 lakh crore.

SBI MF's PBT spurted by 31% to Rs 330 crore while its AUM went up by 47% to Rs 1.57 lakh crore. Notably, DSP BlackRock MF recorded the highest growth in AUM, but showed up a negative profitability. Its asset base surged by a steep 64% to Rs 64,177 crore at the end of March this year while its PBT declined 2% to Rs 119.6 crore in 2016-17.

Further, Kotak Mahindra's PBT fell by 19% to Rs 58.6 crore while the asset base swelled by 58% to Rs 92,216 crore. Profit before tax of IDFC MF dropped by 14% to Rs 140 crore while its AUM climbed by 16% to Rs 60,636 crore.

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