UTI AMC - Q1 FY22 first cut - Beat in Revenue & PAT, EBIDTA lower than estimates - YES Securities

- Revenue - Management Fees was at Rs.2.6bn was better than our estimates of Rs2.45bn as AUM and yields both were better than our forecasts. While AUM Management fees were higher by 64% yoy, sequential growth was at 11%.

- Yield on Management fees - The Yield on Management fees was at 0.56%, which was a improvement of 2bps YoY, against our estimate of 0.52%. Increase can be attributed to 1) higher yields on NPS AUM and 2) higher share of equity AUM.

- Operating Profit -Operating profit came at Rs.1,123mn which was 10% lower than our estimates of Rs.1,249mn due to higher than expected operating costs and employee costs. Employee costs in particular was a negative surprise.

- Profits - PAT stood at Rs.1,550mn v/s our estimates of Rs.1,386mn as weaker EBIDTA performance was more than offset by ahead of estimates other income.

- Change in estimates: Q1 FY22 EPS accounted for 30% of our full year estimates.

- Valuations - The stock currently trades at FY23E P/E of 19x.

Source : Equity Bulls

Keywords