UTI Asset Management Company jumps 4% after firm posts 90% rise in Q4 PAT, 37% growth in revenues

Shares of UTI Asset Management Company jumped over 4% on Friday after the firm reported a 90% year-on-year (YoY) jump in its fourth quarter net profit at ₹163 crore.

Revenue from operations for the quarter rose 37% YoY at ₹416 crore. The company stated that the core revenue from operations consisting entirely of sale of services rose 18% YoY to ₹318 crore.

For the fiscal year 2024, revenue from operations rose 37% to ₹1,737 crore while net profit rose 75% YoY to ₹766 crore. The board of directors of the company proposed a final dividend of ₹24 per share and an additional special dividend of ₹23 per share, taking the overall final dividend to ₹47 per share for FY24.

UTI AMC’s total assets under management stood at ₹18.48 lakh crore.

Imtaiyazur Rahman, Managing Director and Chief Executive Officer at UTI AMC said there has been a significant improvement in financial literacy amongst investors and the growth in the number of SIP investors in the mutual fund industry in the last year is a testament to this. “The measures taken by the regulators have fostered confidence, further contributing to the rising participation of investors in mutual funds,” he said.

The company stated that gross inflow mobilised through systematic investment plans (SIPs) for the quarter stood at ₹1,772 crore. SIP AUM as of March 31, 2024, stood at ₹30,747 crore, registering a growth of 3.67% on a sequential basis. Digital purchase transactions rose by 2.53 lakh, recording an increase of 7.85% as against the second quarter.

Gross inflow mobilised through SIP for FY24 stood at ₹6,767 crore. Total live folios stood at 1.24 crore as of March 31, 2024. Digital purchase transactions rose to 1.26 crore in the count, registering an increase of 9.24% as against the year ended March 31, 2023.

Shares of the company have risen over 13% since the beginning of the year. The stock has gained over 47% in the last one year.