ICICI Prudential AMC shares face Q2 reaction after mixed results

what happened

Shares of ICICI Prudential Asset Management Company Ltd. came into focus on Tuesday, October 13, after the company released its second-quarter results a day earlier after market hours. CNBC TV18 reported that the operating performance was broadly in line with estimates. The main concerns were slower assets under management (AUM) growth than the industry, higher redemptions and a decline in market share.

Revenue rose 7% sequentially to ₹1,674 crore from ₹1,564.22 crore, slightly below Bloomberg’s ₹1,689 crore estimate. EBITDA increased 7% to ₹1,215 crore from ₹1,132.62 crore, marginally above the ₹1,206 crore estimate. Profit after tax fell 8% to ₹889 crore from ₹964.6 crore, broadly matching the ₹892 crore estimate. Other income dropped 91% sequentially to ₹17 crore from ₹181 crore.

Mutual fund quarterly average AUM grew 3.9% to ₹11.61 lakh crore, compared with industry growth of 5.1%, reducing the company’s market share by 10 basis points to 13.3%. Equity QAAUM rose 4.4% to ₹6.59 lakh crore versus industry growth of 6.6%, while its share contracted by 30 basis points to 13.7%. Systematic transactions declined 4.1% to ₹4,672 crore. The board declared an interim dividend of ₹30 per equity share and set October 21 as the record date.

HSBC maintained a “buy” rating and a ₹3,530 target, calling the quarter mixed as stronger core profits were offset by lost AUM share. Bernstein retained an “outperform” rating with a ₹3,510 target. Of 19 analysts covering the stock, 16 rate it “buy”, two “hold” and one “sell”. Shares fell 2% to ₹2,969.1 in the previous session.

why it matters

The results highlight a contrast between resilient core operating profit and weaker relative AUM momentum. Market attention is likely to remain on redemptions, systematic flows and the company’s ability to defend its share.

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