UTI Asset Management Company Earnings Conference Call Summary
Announcement Details
• Date of announcement: May 2, 2024
• Earnings call held on: April 26, 2024
• Focus: Financial performance for the quarter and fiscal year ending March 31, 2024
• Key participants: Managing Director, CEO, CFO, and other executives
• Transcript availability: On the company's website, compliant with SEBI regulations
Financial Performance Highlights
• Strong Performance: Driven by robust capital market and positive consumer sentiment
• Economic Growth: Indian economy projected to grow by 7.5%
• Mutual Fund Inflows: Reached approximately ₹3.54 lakh crore
• Total AUM: Increased to ₹53.4 lakh crore
• Focus Areas: Expansion in tier-2 and tier-3 cities, financial literacy, new product launches (e.g., UTI Balanced Advantage Fund)
Key Financial Metrics
• Total AUM Growth: 19% increase to ₹18.48 lakh crore
• Domestic Mutual Fund Business Growth: 22%
• Q4 Net Profit: ₹163 crore (90% YoY increase)
• Full-Year Profit: ₹766 crore (75% increase)
• Standalone PAT for Q4: ₹151 crore (54% YoY increase)
• FY24 Total PAT: ₹601 crore (41% YoY increase)
Subsidiary Performance
• UTI Retirement Solutions: 25.74% YoY growth in AUM, PAT of ₹54 crore (up 16% YoY)
• UTI International: AUM grew 27.4% YoY to ₹27,645 crore
• UTI Alternatives Pvt. Ltd.: Managed ₹1,974 crore in AUM
Digital Enhancements
• Revamped website and self-service Digital KYC process
Management Insights
• Discussion on yield improvements and expense increases
• Focus on boosting SIP inflows and maintaining distributor relationships
Q&A Highlights
• Distribution Mix: Confirmed similar AUM and flows
• Yield Improvements: Noted in cash, arbitrage, and fixed income
• New Products: Plans for a Multi Cap Fund and innovations in passive and thematic funds
• Tax Rate for FY25: Estimated at 22%-23%
• Dividend Payout Ratio: Minimum 50% policy, current payout around 66%
• Outflows in Liquid Funds: Attributed to banks exiting
Additional Inquiries
• ESOP Expenses: ₹13.14 crore for AMC, ₹16.8 crore consolidated for the past year
• NFO-Related Expenses: Minimal due to soft launches
• Market Performance: Significant increase in net gains on fair value changes
Closing Remarks
• Management emphasized unpredictability of market appreciation and commitment to quarterly updates.

UTI Asset Management Company Earnings Conference Call Summary
Date and Context
• Date of Call: October 19, 2023
• Transcript Release: October 26, 2023
• Period Covered: Quarter and half-year ending September 30, 2023
Economic Outlook
• India's GDP Growth: Projected at 6.3% by IMF.
• Investment Attraction: Inclusion of Indian sovereign bonds in JP Morgan's Emerging Markets Index expected to attract $30 billion.
Financial Performance
• Assets Under Management (AUM):
• Total AUM grew by 16.89% YoY to ₹16.89 lakh crore.
• Domestic mutual fund business increased by 14.22%.
• New Initiatives:
• Launched four new funds.
• Expanded with 29 new offices in Tier II and III cities.
• Market Share:
• Gross sales market share at 7.8%.
• Significant growth in passive investments (35.82% increase in AUM for Index & ETFs).
Financial Results
• Q2 Net Profit: ₹183 crore.
• First Half Net Profit: ₹417 crore (43% YoY increase).
• Revenue:
• Q2 revenue at ₹404 crore.
• First half revenue at ₹872 crore (27% YoY increase).
• SIPs and B30 Participation: Strong growth reported.
Operational Insights
• Concerns Raised:
• Declining equity market share despite net inflows.
• Salary costs impacting operating leverage.
• Net outflows in core equity schemes.
• Strategies Discussed:
• Repositioning equity schemes to regain market share.
• Focus on live SIPs and adjustments in data.
International Investments
• Seed Investments: Current stake in international funds at approximately USD 18 million, with plans to reduce it.
Expense Management
• Equity Yields: Currently around 70-73 basis points, down from 80 basis points.
• Expense Growth Guidance: Confirmed to be on an overall basis.
Regulatory and Market Trends
• Trail Commissions: Structure starts higher in the first year, decreasing thereafter.
• Regulatory Pressures: Concerns about expense ratios and the shift towards passive funds.
• Potential TER Reductions: Expected to pressure margins but support overall revenue growth through increased volume.
Future Outlook
• International Expansion: Focus on expanding presence in global markets, including new offices in Paris and the USA.
• Industry Growth Potential: Positive regulatory environment viewed as an opportunity for growth.
Conclusion
• The call concluded with an invitation for further queries, emphasizing UTI's commitment to maintaining competitive yields and expanding market presence.

UTI Asset Management Earnings Conference Call Summary
Date and Context
• Date of Call: July 26, 2023
• Financial Performance: Quarter ending June 30, 2023
• Key Executives: CEO Imtaiyazur Rahman, CFO Surojit Saha
Financial Highlights
• Assets Under Management (AUM):
• Total AUM grew by 16.8% YoY to ₹16.13 lakh crore.
• Domestic mutual fund business grew by 10.6%, with quarterly average AUM of ₹2.48 lakh crore.
• Net Profit:
• Consolidated net profit of ₹234 crore, up 172% QoQ and 154% YoY.
• Subsidiary Growth:
• UTI Retirement Solutions' AUM increased by 27% YoY.
Business Developments
• New Funds: Launched five new funds and plans to expand in B30 cities.
• UTI Alternatives:
• Manages ₹1,784 crore in AUM with a focus on ESG.
• Active debt funds include UTI Structured Debt Opportunities Fund I, II, III, and UTI Multi Opportunity Fund I.
Challenges and Management Insights
• Equity Asset Growth:
• Concerns over subpar growth attributed to performance issues in a flagship fund.
• Increased other expenses due to IT initiatives and strategic costs.
• Employee Expenses:
• Current flat expense run rate of ₹106 crore expected to continue.
• Employee count increased from 1,377 to 1,491 due to recruitment for new branches.
Market Dynamics
• Yield Improvement:
• Sequential improvement in yields attributed to mark-to-market appreciation.
• No price cuts implemented; lower-fee funds contributed to yield drop.
• SIP Market Share:
• Efforts to diversify AUM and revive SIP sales.
Future Outlook
• Growth and Profitability:
• Optimism about recovery in equity inflows and overall growth.
• Plans for expanding distribution in Europe and Asia.
• Cost Management:
• Anticipated cost savings from retiring employees expected to benefit the bottom line.
Conclusion
• Management's Confidence:
• Positive outlook for the Indian mutual fund industry driven by economic growth and increased investor participation.
• Invitation for Further Inquiries: Call concluded with an open invitation for questions.

Submission Details
• Date of submission: May 4, 2023
• Earnings call date: April 27, 2023
• Compliance: Shared in accordance with SEBI regulations
• Signed by: Arvind Bhagwan Das Patkar, Company Secretary and Compliance Officer
Key Highlights from the Call
• Economic Resilience
• CEO Imtaiyazur Rahman noted resilience in the Indian economy and mutual fund industry.
• 15.4% year-on-year growth in total Assets under Management (AUM) to Rs. 15.56 lakh crore.
• Strategic Objectives
• Focus on governance, human capital, digital transformation, geographical expansion, and ESG compliance.
• Plans to open 29 new offices.
• Performance Metrics
• Q4 FY23: 6.7% year-on-year increase in quarterly average AUM; market share rose to 5.89%.
• SIP contributions in March 2023: Rs. 14,276 crore; total live SIP folios: 25.2 lakh.
• Consolidated net profit for Q4 FY23: Rs. 86 crore (43% QoQ, 59% YoY); total profit for FY23: Rs. 437 crore.
AUM and Fund Performance
• UTI Retirement Solutions Ltd.
• AUM increased by 19.2% to Rs. 2,40,709 crore.
• UTI International Ltd.
• Managed AUM of Rs. 21,703 crore.
• SIP Inflows
• Q4 SIP inflows: Rs. 1,667 crore (12% YoY increase); average SIP ticket size: Rs. 3,262.
Challenges and Market Dynamics
• Redemption Pressures
• India Dynamic Equity Fund faced redemption pressures, particularly from HNI investors.
• Overall redemptions were minimal, influenced by currency depreciation and performance issues.
• Old vs. New AUM
• Less than 20% of the overall book consists of old AUM; 80% is new AUM.
Expansion and Investment Strategy
• Branch Expansion
• Strategy to open 29 new branches with an investment of Rs. 3.2 crore per branch.
• New branches expected to break even in 1.5 to 2 years.
• Digital Strategies
• Investment in digital strategies to cater to market growth.
Market Share and Fund Performance
• Current Market Share
• 8.5% in gross sales; focus on improving fund performance to increase sales and market share.
• Equity Fund Strategy
• Emphasis on enhancing market share through superior performance of select equity funds.
• ETF portfolio: EPFO constitutes about 50% of gross inflows.
Future Outlook
• Cost Management
• Anticipated modest increase in staff expenses; focus on cost optimization.
• New Fund Launches
• Preparing to launch a Balanced Advantage Fund to improve hybrid category inflows.
• Engagement with Distributors
• Active engagement with distributors to boost inflows and improve fund performance.
Conclusion
• Management remains optimistic about regaining market share through strategic product positioning and distribution efforts.

Overview
• UTI Asset Management Company Limited held an earnings conference call on February 2, 2023.
• The call celebrated UTI's Diamond Jubilee and 20 years as a registered mutual fund.
• Key executives, including CEO Imtaiyazur Rahman, discussed financial performance for the quarter and nine months ending December 31, 2022.
Financial Performance Highlights
• Quarterly AUM: Rs. 2,40,841 crore (7.2% YoY increase).
• Market Share: 5.98%.
• Equity AUM: Grew by 5.1% to Rs. 73,631 crore.
• Index and ETFs AUM: Increased by 35.2% to Rs. 81,580 crore.
• Net Sales: Rs. 3,962 crore (8.5% of industry gross sales).
• Total AUM for UTI Group: Rose 14% to Rs. 14.98 lakh crore.
• Net Profit: Consolidated net profit of Rs. 60 crore (down 53% YoY), standalone net profit increased by 4% to Rs. 108 crore.
Strategic Initiatives
• Emphasis on digital initiatives and partnerships to enhance distribution and customer engagement.
• Growth in SIP accounts and inflows noted.
ETF Business Insights
• ETF AUM increased from 31% to 34% of overall AUM.
• Inflows driven by EPFO and institutional clients, leading to slight yield dilution.
Client Retention and Legal Expenses
• UTI International retained all clients despite AUM decline due to market losses and currency impacts.
• One-time legal expenses incurred for opening a new office in Paris.
Employee Costs and Performance Incentives
• Variable pay tied to scheme performance; Rs. 43 crore accrued this financial year.
• Total ESOP cost booked over three quarters: Rs. 15.1 crore, with Rs. 5.7 crore expected for Q4.
Revenue and AUM Growth Discussion
• Revenue decline attributed to mark-to-market depreciation.
• Concerns raised about regulatory changes affecting expense ratios.
Future Outlook
• Optimism about debt inflows as interest rates peak around 6.5%.
• Plans for launching new funds in FY24, with three funds launched in January and five pending regulatory approval.
Employee Cost Management
• Ongoing efforts to rationalize manpower and manage higher employee costs compared to competitors.
• Projected stabilization of employee costs and operational expenses targeted at Rs. 55-56 crore.
Conclusion
• The call concluded with gratitude from CEO Imtaiyazur Rahman for participant support.