UTI Asset Management Reports 9% Decline in Q2 FY24 Net Profit

UTI Asset Management Reports 9% Decline in Q2 FY24 Net Profit

VoM News Desk | October 18, 2023 | 07:19 PM IST | Breaking News | Follow on Google News

UTI Asset Management Reports 9% Decline in Q2 FY24 Net Profit

Challenging Quarter for UTI Asset Management: UTI Asset Management Reports 9% Decline in Q2 FY24 Net Profit

UTI Asset Management Company released its Q2 FY24 earnings, revealing a 9% decrease in its consolidated net profit to ₹183 crore compared to the net profit of ₹200 crore from the same period last year. This marks a challenging quarter for the company, with net profit also down by 22% sequentially.

The consolidated revenue from operations for Q2 FY24 stood at ₹404.06 crore, reflecting a decline from ₹435 crore in Q2 FY23 and ₹467.77 crore in the preceding June quarter. Consequently, revenue fell by 13.6% on a YoY basis and 7% on a QoQ basis. The company’s core income, however, saw a 3% increase on a QoQ basis, totaling ₹292 crore.

AUM and Investment Trends

For the quarter ending on September 30, 2023, UTI MF saw its average assets under management (AUM) improve by 14.22% YoY to reach ₹2,66,813 crore. The total AUM also grew, standing at ₹16,89,318 crore, which is a significant 16.89% increase compared to the total AUM of ₹14,45,172 crore reported in the same period of the previous year. In Q2 FY24, equity-oriented assets contributed 75% to UTI MF’s total quarterly average AUM.

Notably, UTI MF’s Systematic Investment Plan (SIP) AUM witnessed substantial growth, increasing by ₹5,976 crore or 29.06%, from ₹20,565 crore in Q2 FY23 to ₹26,541 crore in Q2 FY24. The company also reported a 9.43% increase in digital purchase transactions during Q2 FY24 compared to the quarter ending June 30, 2023, totaling 31.09 lakh transactions. Digital channels played a crucial role, contributing to 41.8% of total new purchase transactions.

CEO’s Perspective and Outlook

Imtaiyazur Rahman, Managing Director and Chief Executive Officer of UTI Asset Management Company Limited, commented on the performance. He noted that the Indian mutual fund industry has been actively working on enhancing financial literacy and increasing awareness about various financial products, enabling investors to make informed decisions. Despite the challenges, UTI is well-positioned to capitalize on market opportunities, with its geographical and digital reach and expertise in investment management.

Shareholding and Market Performance

As of Q1 FY24, key shareholders in UTI AMC include State Bank of India, Bank of Baroda, and Life Insurance Corporation of India, each holding a 9.97% share capital. Punjab National Bank has a 15.21% stake in the company. Despite the challenging quarter, UTI AMC’s stock closed 0.52% higher at ₹807.15 apiece.

VoM News Desk

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