At UTI AMC, we have always endeavoured to create healthy returns for our shareholders. And to improve shareholders’ value, we believe it is essential to build a resilient business model and earn higher profitability through ethical business practices.
We are one of the pioneers of the Indian MF industry. We pride ourselves on our long-term track record of product and solution innovations that endeavour to deliver consistent and stable returns across economic cycles, eventually driving AUM growth.
We have, to our credit, launched many funds in the past, which were first in their respective categories in India. Also, five of our funds have over 25 years of track record.
Over decades, we have been delivering consistent and stable investment performance. Our investment philosophy aims to provide investment outperformance against benchmarks and competitors. Our rigorous investment research processes consider both qualitative and quantitative factors. These are further led by rating systems and proprietary research methodologies emphasising risk mitigation and drive performance through robust investment decisions.
Our strategy entails focussing on high-yielding products like Equity and Fixed Income through active fund management for achieving higher profitability. Thus, we have all the desired levers to move ahead and capture the profitable assets in the market. At the same time, we have also undertaken many initiatives to bring down our costs through investments in technology, process improvements and employee training to improve our bottom-line overall.
Hence, to achieve profitable growth, we focus on the following:
Inputs  |
Outcomes | Capitals Impacted | Stakeholders Impacted |
|
INR 3,226 crore Consolidated Networth Zero Debt |
INR 494 crore Profit after Tax
16.50% Return on Capital Employed 15% Return on Equity (Consolidated) INR 38.97 Earnings Per Share 43.62% Dividend Payout Ratio (Consolidated) 61.28% Dividend Payout Ratio (Standalone) |
Human Service Financial |
Shareholders Employees |
Despite the severe headwinds faced on account of Covid-19 during 2020-21, we made significant progress on delivering against our set targets.
| Matrix | 2019-20 | 2020-21 | Percentage/bps Growth |
| Revenue | 889.96 | 1,198.63 | 34.68% |
| PAT | 271.46 | 494.14 | 82.03% |
| PAT Margins | 30% | 41% | 1,100 bps |
| ROE | 10% | 15% | 500 bps |
| Total AUM | 9,79,847 | 11,61,256 | 18.51% |
| Equity-oriented AUM | 79,376 | 1,28,200 | 61.51% |
| Hybrid-oriented AUM | 62,201 | 70,726 | 13.70% |
| Debt-oriented AUM | 8,38,270 | 9,62,130 | 14.78% |
*PAT: Profit After Tax *ROE: Return on Equity *AUM: Assets Under Management
In order to create robust value for our shareholders, we have constantly been improving our profitability. As we advance, the AUM size, product mix, and our improved cost structures, adopted to manage on an automated and integrated basis, will drive our enhanced profitability. We have also been bringing down our costs while consciously increasing the proportion of more profitable products. With a substantial contribution coming in from B30 cities in higher fee products like Domestic Active Equity and Hybrid Funds, we are likely to improve our profitability in the future while enhancing shareholder value.
