UTI AMC rallies 3% in early trade on robust Q4 results

UTI Asset Management Company reported a 59 percent growth in net profit at Rs 86 crore in the March quarter.

UTI Asset Management Company Ltd rallied 3 percent in the early trade to Rs 724, a day after reporting net profit growth of 59 percent at Rs 86 crore in the March quarter of FY23, up from Rs 54 crore in the year-ago period.

The fund house has declared a dividend of Rs 22 a share. Revenue from operations in the Janaury-March period was marginally up at Rs 309 crore from Rs 305 crore, while overall expenses were down at Rs 191 crore from Rs 208 crore in the year-ago quarter.

Assets under management were up 15 percent at Rs 15.56-lakh crore. The portfolio management service accounted for 67 percent of AUM at Rs 10.53-lakh crore followed by MF business and retirement solutions services that added up to 16 percent and 15 percent at Rs 2.39-lakh crore and Rs 2.41-lakh crore, respectively.

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The UTI AMC stock has given a return of 34.25 percent since its market debut on October 12, 2020 but has underperformed the benchmark Nifty this year.

The stock has lost 20.59 percent of its value since the beginning of 2023, while the Nifty lost 1.25 percent during the period.

At 10.28 am, the stock was trading at Rs 673.15, up 1.07 percent on the National Stock Exchange.