UTI AMC Q1 Results: Profits jump more than two-fold to Rs 234 cr

On Tuesday, UTI Asset Management Company announced that its profit after tax (PAT) more than doubled to Rs 234 crore in the fiscal year 2024’s June quarter. In the same quarter last year, the firm earned Rs 92 crore in profit. 

According to UTI AMC, the company’s overall revenue from operations increased by 60% to Rs 468 crore in the June quarter of the current fiscal, up from Rs 293 crore in the same time the previous fiscal. In the June quarter, UTI Mutual Fund had an average asset under management of Rs 2.48 lakh crore and a market share of 5.76%. 

Today, the shares of UTI AMC surges over 6% to Rs 862.90 up by 53 points from the previous day’s closing of Rs 809.90. The intraday high and low of the share is Rs 862.90 and Rs 830.25. The share has a 52-week high and 52-week low of Rs 907 and Rs 609.50, respectively. Till now 8,506 shares were traded on the counter. 

UTI AMC manages the investments for UTI Mutual Fund. It features a nationwide branch network as well as a diverse distribution network. UTI Mutual Fund sponsors, including SBI, Punjab National Bank, and Life Insurance Corporation of India, are diluting their interest in India’s oldest fund company. Merchant bankers are advising on share sales. UTI Mutual Fund is promoted by SBI, Life Insurance Corporation of India, Punjab National Bank, and Bank of Baroda, who own 45.21% of the paid-up capital. 

T Rowe Price Group Inc, located in the United States, now owns 23% of UTI Asset Management Company Ltd (UTI AMC) through its wholly-owned subsidiary T Rowe Price Global Investment Services Ltd (UK). These sponsors diluted their stake through an initial public offering (IPO) in 2020 by selling 38,987,081 shares for Rs 2,100 crore. The entire proceeds of the offer went to all the promoters, including T Rowe Price. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.