ABSLAMCNSEQ4 FY25May 2, 2025

Aditya Birla Sun Life AMC Limited

7,233words
91turns
7analyst exchanges
4executives
Management on call
A Balasubramanian
MANAGING DIRECTOR AND CHIEF
Pradeep Sharma
CHIEF FINANCIAL OFFICER – ADITYA BIRLA SUN LIFE AMC LIMITED
Prakash Bhogale
HEAD, INVESTOR RELATIONS – ADITYA BIRLA SUN LIFE AMC LIMITED
A. Balasubramanian
Managing Director and CEO, along with the
Key numbers — 40 extracted
3.3%
ew financial year, suggests a continuation of moderate but uneven growth, with projections around 3.3% for the global economy. Inflation is expected to moderate further, with global headline inflation
4.2%
Inflation is expected to moderate further, with global headline inflation potentially falling to 4.2% and key risks still persist including geopolitical tensions, the potential for increased trade re
6.5%
cing measures. India's macroeconomic outlook remains strong, with GDP growth projected at about 6.5%. This robust expansion is driven by sustained domestic demand, rising government capital expend
4.1%
ed reliance on external markets provides significant insulation. Inflation is expected to average 4.1% for the fiscal year, giving the RBI flexibility for potential rate cuts. The fiscal deficit is ta
4.4%
g the RBI flexibility for potential rate cuts. The fiscal deficit is targeted to decline to about 4.4% of GDP, reinforcing the Government's commitment to fiscal consolidation. Overall, India is poised
Rs. 67.42 lakh crore
l Fund Industry, the Quarterly Average AUM of Mutual Fund Industry as on 31st March 2025 stood at Rs. 67.42 lakh crores as compared to Rs. Rs. 54.1 lakh crores as of March 2024, growing by 25% on a year-on-year basis
Rs. 54.1 lakh crore
M of Mutual Fund Industry as on 31st March 2025 stood at Rs. 67.42 lakh crores as compared to Rs. Rs. 54.1 lakh crores as of March 2024, growing by 25% on a year-on-year basis. Due to recent volatility in the equity
25%
ood at Rs. 67.42 lakh crores as compared to Rs. Rs. 54.1 lakh crores as of March 2024, growing by 25% on a year-on-year basis. Due to recent volatility in the equity markets, Q4 FY25 saw a slowdown i
Rs. 1,21,000 crore
n in equity net sales compared to the previous quarters. Equity net sales for Q4 FY25 were around Rs. 1,21,000 crores v/s Rs. 1,62,000 crores in Q3 FY25. The total NFO collections for Q4 FY25 also experienced a dec
Rs. 1,62,000 crore
mpared to the previous quarters. Equity net sales for Q4 FY25 were around Rs. 1,21,000 crores v/s Rs. 1,62,000 crores in Q3 FY25. The total NFO collections for Q4 FY25 also experienced a decline, totaling to arou
Rs. 12,700 crore
in Q3 FY25. The total NFO collections for Q4 FY25 also experienced a decline, totaling to around Rs. 12,700 crores, with Rs. 8,500 crores coming from equity funds and rest of the money is coming from fixed incom
Rs. 8,500 crore
FO collections for Q4 FY25 also experienced a decline, totaling to around Rs. 12,700 crores, with Rs. 8,500 crores coming from equity funds and rest of the money is coming from fixed income and mainly the equity
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Guidance — 20 items
Meghna Luthra
opening
“On behalf of InCred Equities, I welcome all to Aditya Birla Sun Life AMC 4th Quarter FY25 Earnings Conference Call.”
A. Balasubramanian
opening
“Due to recent volatility in the equity markets, Q4 FY25 saw a slowdown in equity net sales compared to the previous quarters.”
A. Balasubramanian
opening
“Equity net sales for Q4 FY25 were around Rs.”
A. Balasubramanian
opening
“The total NFO collections for Q4 FY25 also experienced a decline, totaling to around Rs.”
A. Balasubramanian
opening
“1,316 crores and we added around 5.43 lakh new SIPs in Q4 FY25.”
A. Balasubramanian
opening
“Our total investor folios stood at 1.06 Crore with around 27 lakh new folios added during FY25.”
A. Balasubramanian
opening
“931 crores in FY25, which is up 19% Y-o-Y.”
A. Balasubramanian
opening
“For FY25, our Operating Revenue is at Rs.”
A. Balasubramanian
qa
“And incentivization also actually sets the target.”
A. Balasubramanian
qa
“Of course, with SIP, I do not want to give the target number given the fact that it becomes a projection.”
Risks & concerns — 10 flagged
The fiscal deficit is targeted to decline to about 4.4% of GDP, reinforcing the Government's commitment to fiscal consolidation.
— A. Balasubramanian
The recent positive turnaround in the Indian stock markets, with indices like the Nifty 50 and Sensex rebounding in March 2025, faces significant headwinds due to the potential impact of newly implemented Trump tariffs.
— A. Balasubramanian
Due to recent volatility in the equity markets, Q4 FY25 saw a slowdown in equity net sales compared to the previous quarters.
— A. Balasubramanian
The total NFO collections for Q4 FY25 also experienced a decline, totaling to around Rs.
— A. Balasubramanian
25,900 crores in March 2025, it witnessed a marginal decline on a quarter-on-quarter basis.
— A. Balasubramanian
And secondly, the other income has seen a significant improvement despite the weak market equity just because of the debt part or what else is there that is helping that the income improved?
— Prayesh Jain
First just on the yields part, there seems to be a Q-o-Q sort of pretty sizable decline.
— Madhukar Ladha
So, Madhukar, if you see quarter-on-quarter there is a marginal decline in the yield which is mainly because of the equity mix has gone down.
— Prakash Bhogale
I don't think I should get worried given the fact that focus on building SIP, remains during the volatile period.
— A. Balasubramanian
So, my question was more, does that add up to your cost pressure be it on sales expansion or scaling up alternate business.
— Dipanjan Ghosh
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Q&A — 7 exchanges
Q
Thanks, Swarnabha Mukherjee. I will take the second question, which is the ESIC mandate. This is a debt-oriented mandate advisory under the portfolio management service. Of course, as you know, this government mandate comes with the lowest possible rate. It is more of a prestigious mandate for us. While we have been in this market for a long time and for a variety of reasons, we have not been participating in this segment. But given the fact that we have people, who can actually provide related services to manage this fund. So, this year what we bid for it, and we got qualified and therefore w
Pradeep Sharma
Yes. So, Mr. Swarnabha Mukherjee's actual employee count, if you see from a quarter-on- quarter basis, has not increased much. It is only in the same range, 1,627 to 1,628 only. However, we are in the process of building our direct team to 30 to 40 additional people. But that is not going to actually impact much on the cost part. Sorry, I missed the 1,620-1,630 number. Sir, you must be talking about the overall expenses. If I have this correctly, the employee expense will move up from around Rs. 88 crores to almost Rs. 99 crores. So, I just wanted to understand that Rs. 10 crores increase. Yes
Q
Hi, good afternoon, everyone. Just a few questions. Firstly, if I look at your yield this quarter sequentially, we basically divide the revenue by your MF AUM that's come off in this quarter. That is primarily because of the share of equity going down or what would you attribute that to? That is first. Secondly you mentioned in your opening remarks that the flow momentum has been strong given the fund performance has improved. Could you just help us understand what has been or directionally what your flow of market share into market share in the last few months has been. Thirdly, in our earlie
A. Balasubramanian
Yes, I think with respect to the revenue drop was on account of equity mix. The equity mix has dropped by about 1.5% compared to the previous quarter. As a result of that equity mix getting reduced the revenue has drop. Therefore, the number what you are saying is derived from that. As far as the final performance impact, across all over the main categories, right from Frontline Equity, Flexicap Fund, Balanced Advantage Fund, Multi Cap Fund and some of these thematic funds, we are seeing improvement coming in and in fact our sales on these funds in fact seeing it today only generally how the n
Q
Hi sir. I have two questions. Firstly, as in the previous quarter we have highlighted that in some of the focused funds we are seeing that the market share in net flows was in the range of about 3% to 4%. So just wanted to understand how those net sales have fared in those particular schemes in the last 3 to 4 months. That was my first question. And the second question is with respect to the alternative side. So, like last quarter we had revenue of about Rs. 34 crores from the alternate assets. So just wanted to understand how much revenue comes from this alternate asset in 4Q FY25?
A. Balasubramanian
I will just ask the second question to answer by Prakash. So, Lalit, the revenue on the alternate side is around Rs. 32 to 33 crores, same as last quarter which is mainly because of the volatility in the equity market. As far as your first question concerned, Lalit, the focused fund, we are seeing an improved gross sales number, both in terms of daily transaction volume coming in as well as an SIP coming in. We are seeing an uptick in the gross sales volume. That is where we measure as one of the parameters for measuring the productivity of individuals. Even the team communications focus as we
Q
Thanks for the opportunity. My first question is that during Quarter 3 you said that you know the debt funds actually had an increase in TER so just wanted to know in Q4 also did we increase TER enough in any of our debt schemes or even equity schemes? I mean if you can just throw any color on that.
Prakash Bhogale
No more or less whatever increase we have seen in Q3 now it is the same for Q4. Okay, so it is basically static, right? Nothing has changed. Yes. Okay. Next is basically in terms of the sir saying about the Equity Innovation Fund. So, if you can just tell me something more about it as to in case of any size or something, that would be helpful. That comes under PMS, Mohit basically, we have about 6-7 products in that, as a flagship fund. One focusing on large cap, as well as, already we have an innovation fund. We are relaunching one of the Innovation Fund, both under the AIF as well as in the
Q
Hi, good evening. Thank you for taking my question. First just on the yields part, there seems to be a Q-o-Q sort of pretty sizable decline. I just wanted to get a sense, have our equity yields remained stable and could you also give us some sense of what is the yield on the alternate and offshore equity and the alternate and other offshore asset classes are. For those two asset classes what is the rough yield that we make of that? Second, in this alternative and other offshore segment there is a pretty good jump in AUM this quarter. So, I am not sure maybe I missed this. But if you could help
A. Balasubramanian
So, on the yield question I will ask Prakash to answer. So, Madhukar, if you see quarter-on-quarter there is a marginal decline in the yield which is mainly because of the equity mix has gone down. So, from around 47% and we are around 45%- 46%. That is the main reason for the yields going down because equity mix has changed. But otherwise, contribution remains the same. Contribution is more or less same, contribution is same. You spoke about alternate assets. On the PMS and AIF side we earn around 1% plus. On the offshore side from GIFT City the yields are in the same line, which is 1% plus a
Q
Good afternoon, everyone. My first question was if you could share what would be the mutual fund revenues for financial year FY25 and a comparable number for last year as well?
Prakash Bhogale
For FY24, it is in the range of around Rs. 1,300 Cr and currently it's in the range of around Rs. 1,600 Cr. Okay. And again, and on the yield front if it's possible to give any indication on the what's the number on the fresh flow versus the older book? We don’t give the yield on the fresh versus the old book. But on a consolidated basis on equity we earn around 68 to 69 basis points. We keep the benchmark, Abhijit. Even normally new assets come little higher cost initially and then gets over a period of 2 to 3 years its adjusted. So, we normally keep a benchmark. I think the ultimate contribu
Q
Thank you everyone for joining and with this we conclude our Q4 FY25 earnings call. Do feel free to reach out to our IR head, Mr. Prakash Bhogale for any queries. Thank you.
Management
Speaking time
A. Balasubramanian
25
Prakash Bhogale
20
Moderator
8
Prayesh Jain
8
Swarnabh Mukherjee
5
Mohit Mangal
5
Abhijit Sakhare
5
Dipanjan Ghosh
4
Lalit Deo
3
Madhukar Ladha
3
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Opening remarks
Meghna Luthra
Thank you, Manav. Good evening, everyone. On behalf of InCred Equities, I welcome all to Aditya Birla Sun Life AMC 4th Quarter FY25 Earnings Conference Call. We have along with us Mr. A. Balasubramanian – Managing Director and CEO, along with the senior management of the company. We are thankful to the management for allowing us this opportunity. I would now like to hand it over to Mr. A. Balasubramanian for his opening remarks. Over to you, sir.
A. Balasubramanian
Thanks, Meghna, for the introduction. Good evening, everyone, and thank you for joining today's investors call. I trust you all had the opportunity to review our earnings presentation, which is available on both the stock exchange and on our website. Let me begin with the economic outlook and an update on the mutual fund industry: The global macroeconomic outlook for the new financial year, suggests a continuation of moderate but uneven growth, with projections around 3.3% for the global economy. Inflation is expected to moderate further, with global headline inflation potentially falling to 4.2% and key risks still persist including geopolitical tensions, the potential for increased trade restrictions, and macroeconomic volatility stemming from unexpected economic shifts or policy changes. Central banks are expected to remain vigilant, calibrating monetary policy cautiously especially in the US, while fiscal policy will need to focus on long-term stability and growth-enhancing measure
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