ICICI Prudential Asset Management Company has reported that its net profit in the March quarter was up 10 per cent at ₹763 crore against ₹692 crore logged in the same period last year, on the back of higher inflows.
Revenue increased 20 per cent to ₹1,517 crore (₹1,269 crore). However, the fund house registered a loss of ₹89 crore in other income during the quarter, against ₹51 crore in the same period last year. The loss in other income was driven by a mark-to-market loss.
Overall income jumped 8 per cent to ₹1,428 crore (₹1,320 crore).
Investor behaviour amid market volatility
Nimesh Shah, Managing Director & CEO, ICICI Prudential AMC, said investors increased their equity exposure when markets fell last month, and this trend has continued despite volatility in markets over the last 18 months.
Going ahead, the market may take a setback, and industry flows may be impacted by geopolitical developments, but the fund house will strive to retain its market share and grow SIP flows, he added.
Cost control offsets rising commissions
Overall expenses were down 3 per cent at ₹389 crore (₹403 crore) due to lower employee benefits and other expenses. Fees and commission outgo increased to ₹111 crore (₹83 crore), while depreciation rose to ₹28 crore (₹23 crore).
AUM and segment growth remain strong
The fund house’s assets under management increased 25 per cent to ₹11.78 lakh crore (₹9.43 lakh crore). Equity assets were up to ₹6.20 lakh crore (₹4.88 lakh crore), while debt and passives increased to ₹1.99 lakh crore (₹1.72 lakh crore) and ₹1.84 lakh crore (₹1.24 lakh crore).
Market share and SIP inflows expand
The second-largest fund house has equity and hybrid market share of 14 per cent and 27 per cent, respectively.
SIP inflows in the March quarter increased 31 per cent to ₹5,104 crore (₹3,906 crore). The Specialised Investment Fund, launched in January, has an asset base of ₹1,896 crore.