Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q4 FY2023-24 Earnings Presentation
61 slides from Uti Asset Management's earnings presentation, Apr 26, 2024
Slide 1: Exchange filing cover letter
Ref. No.: UTI/AMC/CS/SE/2024-25/0420 Date: 25th April, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza Plot No. C/1 Phiroze Jeejeebhoy Towers G Block Bandra – Kurla Complex Dalal Street Bandra (East) Mumbai – 400 051. Mumbai – 400 001. Scrip Symbol: UTIAMC Scrip Code / Symbo
Slide 2: Investor Presentation UTI AMC Q4 & FY2023-24
UTI ASSET MANAGEMENT COMPANY LIMITED Investor Presentation UTI AMC Q4 & FY2023-24
Slide 3: UTI AMC – A Customer Centric Global Asset Management Firm
UTI AMC – A Customer Centric Global Asset Management Firm Pioneer in India • Oldest Mutual Fund in India & a trusted household brand • First to launch Equity Mutual Fund, Children’s Plan ₹ 18.48 lakh crore in Asset Under Management (AUM)* • Focused solely on Investment Management and related service
Slide 4: UTI AMC – Our Vision and Mission
UTI AMC – Our Vision and Mission VISION To be The Most Preferred Asset Manager MISSION The Most Trusted Brand, admired by all stakeholders Asset Manager with a Diverse Suite of Products & Global Presence Enable our Customers to Achieve Their Financial Goals Employer of First Choice A Socially Respon
Slide 5: Focus is the Essence of Our Business
Focus is the Essence of Our Business Long-Term Success Performance-Driven with Purpose Investment Investors Co-operation and Trust and Thinking Long- Excellence First Collaboration Mutual Respect Term Focus of our existence Investors' success leads Bringing out the best ideas Building meaningful Sha
Slide 6: Our Continuous Endeavour is to
Our Continuous Endeavour is to Build and retain highly competent and Build excellent investment systems and motivated investment team across asset classes processes Further build our distribution capabilities and Execute key operations and technology strengthen existing relationship with our partner
Slide 7: Diversified shareholding
Diversified shareholding 0.15% 1.93% 5.96% UTI AMC has no identifiable promoters 22.92% 8.71% State Bank of India, Bank of Baroda and 15.30% Life Insurance Corporation of India hold 15.18% 9.95% share capital each 9.95% 9.95% 9.95% T. Rowe Price International Ltd. – a global investment management fi
Slide 8: Our Key Performance Indicators
Our Key Performance Indicators Assets Under Market Profitability Flows & Management Share FY2024 vs FY2023 Folios Total AUM* NPS AUM Revenue Growth 35% Gross Sales@ ₹ 18,48,330 crore 25.8% Core Revenue Growth# 5% ₹ 2,08,548 crore MF QAAUM MF AUM EBITDA Growth 64% SIP Gross Sales@ ₹ 2,90,881 crore 5.
Slide 9: UTI Group
UTI Mutual Fund UTI Group
Slide 10: UTI AMC – Group Structure
UTI AMC – Group Structure UTI Asset Management Company Limited Investment Manager Support Services Investment Manager PMS (includes EPFO, 100% Subsidiaries to UTI Mutual Fund to SUUTI to Offshore Funds CMPFO, ESIC and PLI Funds) UTI International Ltd. Manager for International (Offshore) Funds UTI A
Slide 11: Group AUM for UTI AMC Increased by ~18.79% YoY
Group AUM for UTI AMC Increased by ~18.79% YoY ₹ crore March 2023 December 2023 March 2024 Total Total Total ₹ 15,55,995 crore ₹ 17,59,150 crore ₹ 18,48,330 crore 2,85,256, 2,72,945, 2,40,709, 2,38,791, 3,02,677, 16.22% 15.52% 2,90,881, 15.47% 15.35% 1,943, 16.38% 15.74% 0.11% 1,974, 1,707, 0.11% 0.
Slide 12: UTI MF - Witnessed AUM Growth in the Quarter & Year
UTI MF - Witnessed AUM Growth in the Quarter & Year Domestic MF Closing AUM as on 31st March 2024 Equity ₹ 85,105 crore ETFs & Index ₹ 1,20,670 crore Cash & Arbitrage ₹ 25,242 crore Hybrid ₹ 26,347 crore Income ₹ 27,192 crore MF Closing AUM ₹ 2,84,557 crore Domestic MF QAAUM for the quarter ended 31
Slide 13: Growth Trajectory – 21.81% YoY QAAUM Growth for UTI MF
Growth Trajectory – 21.81% YoY QAAUM Growth for UTI MF Total MF QAAUM Market Share – Total MF QAAUM 21.81% YoY Mar ‘23 Dec ‘23 5.89% 5.54% 2,90,881 2,72,944 2,38,791 Mar ‘24 5.37% Mar ‘23 Dec ‘23 Mar ‘24 (₹ crore) 12 Source: AMFI, Internal.
Slide 14: Keystones of Growth – Hybrid QAAUM Growth
Keystones of Growth – 26.06% YoY Growth in Hybrid QAAUM Equity QAAUM Market Share – Equity QAAUM (₹ crore) 20.26% YoY Mar ‘23 Dec ‘23 Mar ‘24 80,455 84,777 70,494 4.57% 3.98%* 3.68% Mar ‘23 Mar'23 Dec'23 Dec ‘23 Mar ‘24 Mar'24 Hybrid QAAUM Market Share – Hybrid QAAUM (₹ crore) 26.06% YoY Mar ‘23 Dec
Slide 15: Income QAAUM Market Share seeing Steady Growth
Income QAAUM Market Share seeing Steady Growth Income QAAUM Market Share – Income QAAUM (₹ crore) 22.77% YoY Mar ‘23 Dec ‘23 Mar ‘24 27,760 28,413 3.02% 3.16% 23,144 3.24% Mar ‘23 Dec ‘23 Mar ‘24 Cash & Arbitrage QAAUM Market Share – Cash & Arbitrage QAAUM (₹ crore) (12.99%) YoY Mar ‘23 Dec ‘23 Mar
Slide 16: Passive Funds witnessed 39.31% YoY Growth
Passive Funds witnessed 39.31% YoY Growth Index & ETFs QAAUM Market Share – Index & ETFs QAAUM 39.31% YoY Mar ‘23 Dec ‘23 (₹ crore) 12.81% 13.08%* 1,15,448 1,03,923 82,871 Mar ‘24 13.19% Mar ‘23 Dec ‘23 Mar ‘24 *Market share has changed from Q3 FY24 due to change in classification of funds at indust
Slide 17: Trend in Net Sales
Trend in Net Sales Quarterly Net Sales for ETF & Index Funds witnessed Steady Growth Quarterly Net Sales 3,233 (₹ crore) 2,589 2,227 1,100 1,263 25 181 -141 -134 -23 Q4 FY23 -491 -1,001 -1,130 -1,344 Q3 FY24 Q4 FY24 -4,306 -5,100 -5,246 -6,354 Equity Hybrid ETFs & Index Cash & Arbitrage Income Total
Slide 18: Key Business Focus Areas
Key Business Focus Areas Growth of Consistent Geographical Development International, Spread Across of Human Retirement & the Country Capital Alternate Business Attracting Prudent Right Leveraging Investment Opportunities Digital Management through Adoption Process Partnerships 17
Slide 19: 1. a) Prudent Investment Management Policies
1. a) Prudent Investment Management Policies Risk Identification Control • Stress Testing • Regular Compliance Check • Product Development • Dedicated Risk Management Team Process • Internal & External Audit Team • Risk Control Self Assessment • Control Testing Advisory • Review Mechanism • Equity R
Slide 20: 1. b) Investment Management Process
1. b) Investment Management Process Equity Investment Process Fixed Income Investment Process Investment Process Approach • In-house Research Team • Key objective is Yield and Duration Management • Proprietary Framework – Qualitative & • Achieved through combination of Top-down and Quantitative Bott
Slide 21: 1. c) Embedding ESG in our Investment Decisions
1. c) Embedding ESG in our Investment Decisions Sector-specific framework to understand and manage ESG risk ESG Framework consistently across portfolio holdings Responsible Investment Strategy Integration Helps in evaluating the ESG performance of a company on an ESG Database individual basis and pe
Slide 22: 2. SIP to remain the Cornerstone for AUM Performance
2. SIP to remain the Cornerstone for AUM Performance Long Tenure SIP Book(1) Monthly Gross SIP Inflow (₹ crore) 593 590 590 More than 573 572 10 Years 90% 566 565 558 554 554 550 544 532 More than 5 Years 95% MAR'23 APR'23 MAY'23 JUN'23 JULY'23 AUG'23 SEP'23 OCT'23 NOV'23 DEC'23 Jan'24 Feb'24 Mar'24
Slide 23: 3. a) Enabling Business Digitally
3. a) Enabling Business Digitally 24x7 Digital Channels Assisted Journeys integrated Building Community • Customer service for Product & Investment enquiry- • Active engagement on multiple touch points across Social • Access at your convenience anytime anywhere, New Mobile Inbound, Outbound & Co-bro
Slide 24: 3. b) New Age Digital Channels- #NEWFORYOU
3. b) New Age Digital Channels- #NEWFORYOU New UTI Buddy New Website & Mobile App for Investors- (office-on-the-go) Mobile First, secured & scalable Website & Mobile App for MFDs New state of the Art Contact Paperless & Contactless Digital Centre – Self-service IVR, Call, KYC- riding on Aadhar, Digi
Slide 25: 3. c) Current Digital Ecosystem at UTI AMC
3. c) Current Digital Ecosystem at UTI AMC Riding on Best-in-Class Technology and Partner Ecosystem Front Office Middle Office Back Office (Revenue generating & Customer facing) (Risk & Compliance) (Accounting, Technology, HR, Finance) Research & Human Brand Investment Risk & Fund Resource Message M
Slide 26: 3. d) Growing Online Transactions reflect Acceptance of Digital
3. d) Growing Online Transactions reflect Acceptance of Digital Quarterly Online Gross Sales (as % of Total Gross Sales) 100.00% Number of digital SIP transactions recorded a growth of 20% in Q4 FY24 as compared 96.40% to Q4 FY23 96.00% 95.10% 94.60% 94.80% 94.50% 92.00% 33.09% of total gross sales
Slide 27: 3. e) Our Endeavours to Augment our Digital Presence
3. e) Our Endeavours to Augment our Digital Presence Number of Digital Purchase Transactions (in Lakhs) For Customers • Seamless accessibility through revamped 126.54 digital channels 115.84 • Paperless & digitally enabled KYC process & multiple enablers for seamless digital 93.57 transactions 41.40
Slide 28: 3. f) Developing Digital Resources to be Future Ready
3. f) Developing Digital Resources to be Future Ready New Grow the Optimize Growth Core Cost Avenues • Identified Focus Areas • Tapping Emerging • Digitizing Operations to & Roadmap Segments Reduce Cost • Enabling Sales Force • Driving Digital • Re-imagining Digitally Partnerships & Sales via Operat
Slide 29: 4. a) Geographical Reach across the Country
4. a) Geographical Reach across the Country UTI Financial J&K 193 Centres 1 (UFCs) Chandigarh Himachal 1 Pradesh 1 Uttarakhand 3 Delhi Haryana 6 5 UTI AMC 1474 Employees* Uttar Assam Rajasthan Pradesh 5 10 15 Bihar 7 Meghalaya 1 Gujarat Madhya Pradesh West Bengal Tripura Core Sales 16 7 Chhattisgarh
Slide 30: 4. b) Multi-Channel Distribution Network brings Stability
4. b) Multi-Channel Distribution Network brings Stability Total QAAUM Equity + Hybrid QAAUM (in %) (in %) Direct 33 66 Mar ’23* Direct Mar ’23* MFDs 25 MFDs 55 BND 9 BND 12 Direct 68 Direct 33 Dec ’23* Dec ’23* MFDs 24 MFDs 56 BND 8 BND 11 Direct 68 Direct 33 Mar ’24* Mar ’24* MFDs 24 MFDs 56 BND 8
Slide 31: 4. c) Outpacing the Industry in B30 cities
4. c) Outpacing the Industry in B30 cities Monthly AAUM - March 2024 Improved awareness about investing in financial products vis a vis traditional investment UTI Mutual Fund Our established presence in B30 cities has enabled us to T30 79% attract new clients, and positions us to capitalize on futur
Slide 32: 5. a) UTI International Ltd. – Exploring New Destinations
5. a) UTI International Ltd. – Exploring New Destinations Assets Under Management of ₹ 27,645 crore as of 31st March 2024 4 Office Locations – Singapore, Dubai, London and Paris with a total of 29 staff & Clients spread across 35+ countries with top 5 being Japan, Switzerland, France, UK, Israel and
Slide 33: 5. b) UTI Retirement Solutions Ltd. – Reaching New Heights
5. b) UTI Retirement Solutions Ltd. – Reaching New Heights % 100% subsidiary of UTI AMC Ltd. PFRDA licensed for managing Pension funds Managing Government and non-Government NPS corpus UTI RSL manages 25.8% of the NPS Industry AUM as on 31st March 2024 UTI Retirement Solutions has shown AUM growth o
Slide 34: 5. c) UTI Alternatives Pvt. Ltd. – Expanding the Business Portfolio
5. c) UTI Alternatives Pvt. Ltd. – Expanding the Business Portfolio %% UTI Alternatives (formerly known as UTI Capital Pvt. Ltd.), 100% subsidiary of UTI AMC Ltd. mandated to manage and grow the private capital investment business Currently manages 5 active private debt funds (UTI SDOF I, II & III),
Slide 35: ESG Initiatives
ESG Initiatives • UTI AMC has incorporated ESG Strategy within its business operations and considering the same, the ESG rating agencies have started evaluating the company. The ESG Rating Agency “Sustainalytics” has progressed our score from ‘High Risk’ to ‘Medium Risk’ (from 32.9 in 2021 to 24.1)
Slide 36: Financial Snapshot
UTI Mutual Fund Financial Snapshot
Slide 37: Consolidated Statement of Profit & Loss – Quarterly Earnings
Consolidated Statement of Profit & Loss – Quarterly Earnings Particulars Q4 FY24 Q4 FY23 % (+/-) (₹ crore) Total Revenue from Operations 416 301 38% Other Income 4 8 (50%) Total Income 420 309 36% Fee & Commission Expenses 1 1 - Employee Benefit Expense 117 106 10% Depreciation & Amortization Expens
Slide 38: Consolidated Statement of Profit & Loss – Sequential Quarterly Earnings
Consolidated Statement of Profit & Loss – Sequential Quarterly Earnings Particulars Q4 FY24 Q3 FY24 % (+/-) (₹ crore) Total Revenue from Operations 416 449 (7%) Other Income 4 1 300% Total Income 420 450 (7%) Fee & Commission Expenses 1 1 - Employee Benefit Expense 117 105 11% Depreciation & Amortiz
Slide 39: Consolidated Statement of Profit & Loss – Year End Earnings
Consolidated Statement of Profit & Loss – Year End Earnings Particulars FY24 FY23 % (+/-) (₹ crore) Total Revenue from Operations 1737 1267 37% Other Income 7 23 (70%) Total Income 1744 1290 35% Fee & Commission Expenses 3 3 - Employee Benefit Expense 439 415 6% Depreciation & Amortization Expenses
Slide 40: Standalone Statement of Profit & Loss – Quarterly Earnings
Standalone Statement of Profit & Loss – Quarterly Earnings Particulars Q4 FY24 Q4 FY23 % (+/-) (₹ crore) Total Revenue from Operations 328 264 24% Other Income 3 8 (63%) Total Income 331 272 22% Fee & Commission Expenses 3 2 50% Employee benefit Expense 97 91 7% Depreciation & Amortization Expenses
Slide 41: Standalone Statement of Profit & Loss – Sequential Quarterly Earnings
Standalone Statement of Profit & Loss – Sequential Quarterly Earnings Particulars Q4 FY24 Q3 FY24 % (+/-) (₹ crore) Total Revenue from Operations 328 346 (5%) Other Income 3 1 200% Total Income 331 347 (5%) Fee & Commission expenses 3 3 - Employee benefit expense 97 88 10% Depreciation & Amortizatio
Slide 42: Standalone Statement of Profit & Loss – Year End Earnings
Standalone Statement of Profit & Loss – Year End Earnings Particulars FY24 FY23 % (+/-) (₹ crore) Total Revenue from Operations 1337 1092 22% Other Income 4 9 (56%) Total Income 1341 1101 22% Fee & Commission expenses 11 10 10% Employee benefit expense 368 357 3% Depreciation & Amortization expenses
Slide 43: Details of Consolidated Sale of Services
Details of Consolidated Sale of Services (₹ crore) Particulars Q4 FY24 Q4 FY23 % (+/-) FY24 FY23 % (+/-) MF Fees 247 206 20% 913 872 5% PMS Fees 9 6 50% 29 26 12% SUUTI Support Service Fees 1 2 (50%) 6 10 (40%) POP Fees & others - - - 1 1 - Sale of Services - UTI AMC Standalone 257 214 20% 949 909 4
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ crore) Particulars FY24 FY23 % (+/-) Assets: Financial Assets 4850 3721 30% Non-Financial Assets 491 454 8% Total Assets 5341 4175 28% Liabilities & Equity: Financial Liabilities 272 254 7% Non-financial Liabilities 96 53 81% Equity 4973 3868 29% Total Liabilities & Equ
Slide 45: Standalone Balance Sheet
Standalone Balance Sheet (₹ crore) Particulars FY24 FY23 % (+/-) Assets: Financial Assets 3515 3171 11% Non-Financial Assets 466 447 4% Total Assets 3981 3618 10% Liabilities & Equity: Financial Liabilities 214 225 (5%) Non-financial Liabilities 82 45 82% Equity 3685 3348 10% Total Liabilities & Equ
Slide 46: Operating Profit Margin (bps of AAUM)
Operating Profit Margin (bps of AAUM) Year End FY2021 Year End FY2022 Operating Operating 12 Margin 16 Margin Operating Operating 32 Expenses 25 Expenses Operating Operating Revenue 44 Revenue 41 Year End FY2023 Year End FY2024 Operating Operating 14 Margin 13 Margin Operating Operating Expenses 23
Slide 47: Other Subsidiaries - Financial Highlights
Other Subsidiaries - Financial Highlights (₹ crore) Particulars UTI International UTI Retirement UTI Alternatives Pvt. UTI Venture Funds Ltd. Solutions Ltd. Ltd. Mgmt. Co. Pvt. Ltd. FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 AUM 27,645 21,703 3,02,677 2,40,709 1,974 1,707 - - Sale of Se
Slide 48: Consolidated Ratios
Consolidated Ratios PAT Margin (%) Return on Equity (%) 0.6 24% 0.55 21% 0.5 19% 0.45 42% 44% 18% 16% 16% 40% 0.4 15% 34% 0.35 31% 12% 12% 0.3 10% 0.25 9% FY 20 FY 21 FY 22 FY 23 FY 24 FY 20 FY 21 FY 22 FY 23 FY 24 47
Slide 49: Annexures
UTI Mutual Fund Annexures
Slide 50: Investor Services Key Indicators – Q4 FY24
Investor Services Key Indicators – Q4 FY24 1.9 lakh 0.7 lakh 5 seconds 0.1 lakh Total Call Volume Total Call Volume Average Speed of Live Chats Outbound Inbound Answer offered • Self service IVR for NAV, SOA, Branch Locator etc. • Chat with Live Agent for Assistance Contact Center • Inbound Calls fo
Slide 51: Breakup of Consolidated investments
Breakup of Consolidated investments As on 31st March 2024 (₹ crore) Breakdown of Total Investment Investment in UTI MF Schemes 2,561 Equity 709 Arbitrage 737 8% 11% Liquid & Debt 1,115 Offshore Funds 557 Total Investments: ₹ 3,833 crore Equity 450 15% 66% Debt / Hybrid 107 Venture Funds, Other Equit
Slide 52: UTI AMC Board of Directors - Composition
UTI AMC Board of Directors - Composition UTI AMC is a professionally managed company Geographical Board Women Directors Representation Composition Representation 1 2 3 3 6 7 Independent Directors Women Director Non-Executive Non-Independent Directors Domestic Overseas Managing Director 51
Slide 53: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Dinesh Kumar Mehrotra | Non - Executive Chairman & Independent Director Mr. Dinesh Kumar Mehrotra is the Non - Executive Chairman and an Independent Director of the Company. He has previously served as the Chairman and Managing Director of LIC. He has also s
Slide 54: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Rajeev Kakar | Independent Director Mr. Rajeev Kakar is an Independent Director of the Company. He currently serves on the boards of various banks and financial institutions such as Eurobank Ergasias SA (Greece),Gulf International Bank (GIB Bahrain), Gulf In
Slide 55: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Kiran Kumar Tarania | Non-Executive Nominee Director Mr. Kiran Kumar Tarania is a Non-Executive Nominee Director of the Company. He is currently General Manager – Treasury Division at Punjab National Bank. He is an accomplished finance professional with over
Slide 56: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute a prospectus, an offering circular, an advertisement, a private placement offer letter or offer document or an offer or the recommendation or solicitation of an offer or invitation to purchase or sell any securitie
Slide 57: Glossary
Glossary AUM Asset Under Management KYC Know Your Customer AAUM Average Assets Under Management MFD Mutual Fund Distributor AIF Alternate Investment Funds NAV Net Asset Value AMFI Association of Mutual Funds in India NPS National Pension System B30 Beyond 30 PAT Profit After Tax CMPFO Coal Mines Pro
Slide 58: Thank You
THANK YOU REGISTERED OFFICE: UTI Tower, 'Gn' Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Phone: 022 – 66786666. UTI Asset Management Company Limited (Investment Manager for UTI Mutual Fund) E-mail: [email protected] Mutual Fund investments are subject to market risks, read all scheme re
Slide 59: Press Release: Consolidated Net Profit stands at ₹766 crore for FY2023-24
PRESS RELEASE UTI Asset Management Company Limited Consolidated Net Profit stands at ₹ 766 crore for FY2023‐24; up by 75% YoY Financial Highlights for FY2023‐24 Revenue from opera ons for the financial year 2023‐24 stood at ₹ 1,737 crore, up 37% from FY22‐ 23. The core revenue from opera ons for F
Slide 60: Press Release: Business Highlights for FY2023-24
PRESS RELEASE industry as we collec vely march towards the na onal mission of Vikasit Bharat. UTI will strive to partner in this growth through financial inclusivity and investor awareness.” Business Highlights for FY2023‐24 As on 31st March 2024, UTI MF’s quarterly average assets under management
Slide 61: Press Release: Media contacts
PRESS RELEASE For media queries, please contact: Isha Srivastava @ isha.srivastava@u .co.in, or Ruchi Singh @ [email protected] Corporate Office: UTI Tower, ‘Gn’ Block, Bandra-Kurla Complex, Bandra (East), Mumbai 400 051. Tel: 022 6678 6666 Website: www.utimf.com Information Classification
Uti Asset Management — Q4 FY2023-24 Earnings Presentation on 6ix