UTI Asset Management Company (UTI AMC) has reported a robust performance for the first quarter, marked by significant growth in passive assets under management (AUM) and record Systematic Investment Plan (SIP) inflows.

Financial Highlights

UTI AMC's consolidated financial results for Q1 show:

• Total revenue increased by 3% year-over-year (YoY) to ₹548.61 crore
• Core revenue (Sale of Services) grew by 12% YoY to ₹379.29 crore
• Profit After Tax (PAT) stood at ₹236.85 crore, down 7% YoY but up 172% quarter-over-quarter (QoQ)
• Core PAT increased by 4% YoY to ₹122.00 crore

Asset Under Management Growth

The company reported impressive growth in its Assets Under Management (AUM):

• Total group AUM reached ₹21,93,215.00 crore, up 13.28% YoY
• UTI Mutual Fund's Quarterly Average AUM (QAAUM) grew to ₹3,60,867.00 crore, a 16.15% YoY increase
• Passive AUM surged by 60% YoY, demonstrating the company's strong focus on this segment

Record SIP Inflows and Digital Transactions

UTI AMC witnessed significant growth in its SIP business and digital transactions:

• SIP AUM increased by 16.90% YoY to ₹42,195.93 crore
• Gross inflow mobilized through SIP for Q1 stood at ₹2,260.98 crore
• Digital purchase transactions rose to 49.14 lakh, a 29.86% increase compared to the same quarter last year

Strategic Focus Areas

The company highlighted its strategic initiatives for growth:

1. Expanding retirement product offerings
2. Enhancing digital presence and Independent Financial Advisor (IFA) network in Bharat markets
3. Focusing on unlocking operating leverage
4. Generating long-term sticky flows

Management Commentary

Mr. Imtaiyazur Rahman, Managing Director & Chief Executive Officer of UTI AMC, stated, "Q1 has offered a strong start to the financial year both for UTI AMC as well as the mutual fund industry. At the Company level, we have seen a notable growth in AUM and steady SIP inflows depicting a progressive curve in the last quarter."

He added, "We are hopeful that we will be able to leverage this positively to aid in building a long-term positive outlook for the overall industry. Despite global triggers and other geopolitical tensions that persisted, the impact on the Indian economy has been well contained."

Market Position and Distribution Network

UTI AMC maintains a strong market position with:

• 5% market share in total Mutual Fund QAAUM
• 24.67% market share in NPS AUM
• 13.18% market share in Passive AUM
• A vast distribution network of ~75,000 mutual fund distributors and 255 UTI Financial Centres

The company's focus on digital adoption is evident, with 42.23% of total gross sales of Equity & Hybrid Funds mobilized through digital platforms in Q1.

UTI AMC's strong performance in Q1, particularly in passive AUM growth and SIP inflows, positions the company well for continued growth in the evolving asset management landscape. The focus on digital initiatives and expansion into Bharat markets aligns with the changing dynamics of the Indian financial services sector.

UTI Asset Management Company Limited (UTI AMC) has reported robust financial results for the first quarter, showcasing significant growth in profits and assets under management (AUM).

Standalone Performance

UTI AMC's standalone profit for Q1 reached ₹216.13 crore, marking a substantial 16% increase from ₹185.81 crore in the same quarter last year. The company's total income rose to ₹438.31 crore, up from ₹390.01 crore year-over-year, indicating strong revenue growth.

Consolidated Results

On a consolidated basis, the company reported a profit attributable to owners of ₹236.85 crore for Q1. While this represents a 7% decrease from ₹254.17 crore in the previous year, it's important to note that the company's core profit after tax increased by 4% year-over-year to ₹122 crore.

Assets Under Management

UTI AMC's total group AUM stood at an impressive ₹21,93,215 crore as of June 30. The company's mutual fund quarterly average AUM (QAAUM) reached ₹3,60,867 crore, reflecting a robust 16.15% year-over-year growth.

Business Highlights

• Equity assets (active + passive) contributed 69% to UTI MF's total average AUM.
• The company maintained a strong presence across 699 districts in India.
• Total live folios stood at 1.35 crore as of June 30.
• Gross inflow mobilized through Systematic Investment Plans (SIPs) for the quarter was ₹2,260.98 crore.
• SIP AUM grew by 16.90% year-over-year to ₹42,195.93 crore.

Digital Initiatives

UTI AMC reported significant progress in its digital initiatives, with digital purchase transactions rising to 49.14 lakh, marking a 29.86% increase compared to the same quarter last year.

Subsidiary Loan Approval

In a strategic move, UTI AMC's Board of Directors approved an unsecured working capital loan of up to ₹45 crore to its wholly-owned subsidiary, UTI Alternatives Private Limited (UTI APL). The loan carries an interest rate based on the 1-year SBI MCLR, with quarterly interest payments and is repayable by March 31, 2028.

Management Commentary

Mr. Imtaiyazur Rahman, Managing Director & Chief Executive Officer of UTI AMC, commented on the results: "Q1 has offered a strong start to the financial year both for UTI AMC as well as the mutual fund industry. At the Company level, we have seen a notable growth in AUM and steady SIP inflows depicting a progressive curve in the last quarter."

Dividend Announcement

The Board of Directors has proposed a final dividend of ₹26 per equity share and an additional special dividend of ₹22 per equity share, subject to shareholder approval at the upcoming Annual General Meeting.

UTI AMC's strong Q1 performance, coupled with its strategic initiatives and robust AUM growth, positions the company well for continued success in the asset management industry.