UTIAMC - UTI Asset Management Company Limited Share Price

Here are the major questions and detailed answers from the Q&A section of the earnings transcript:

Question 1: "If I look at hybrid category, which is our main target category, last year we had around 19 billion of net inflows... How can we capture more flows in this category?"

Answer: "We are focused on hybrid strategies. The market conditions have impacted inflows, but we are committed to pushing hybrid products, including our multi-asset and aggressive hybrid funds, through both lump sum and SIP modes. Distributor engagement has been strengthened, and we expect improvements in H2 as we enhance our marketing strategies."

Question 2: "Has there been any activity related to the UTI international business given the AUM decline?"

Answer: "The decline was due primarily to two funds affected by redemptions and mark-to-market impacts. We are optimistic as growth-oriented strategies have shown better performance, and with increased sales efforts, we aim to regain inflows as the appetite for Indian investments improves."

Question 3: "Could you explain the math behind the Rs. 25 crores impact related to the VRS scheme?"

Answer: "The Rs. 25 crores is an actuarial impact due to a family pension revision. The exact impact will depend on VRS acceptance, which ends on 31st October. This one-time expenditure is reflected in this quarter's financials due to accounting policies requiring immediate recognition."

Question 4: "What is the estimated cost if all eligible employees accept the VRS?"

Answer: "There are 479 eligible employees. If all opt for VRS, the average payout would be around 60-65 lakhs per employee. We anticipate needing to replace about 70-75 employees, depending on business requirements."

Question 5: "Regarding SIP market share, which was about 2.9%, how do we plan to improve this?"

Answer: "While our share is down slightly, we've seen growth in SIP numbers, registering 11% YoY. Our emphasis on enhancing digital engagement and partnerships with distributors has been fruitful, especially in smaller cities, and we remain committed to increasing our SIP market presence."

Question 6: "What is the expected normalized employee cost after the VRS?"

Answer: "Post-VRS, normalized employee costs will be assessed once all options are in. We will provide an accurate figure in our Q3 results. Current costs are projected to align within the typical 2.5%-3% guidance as we evaluate workforce requirements."

Question 7: "What are the new pension schemes mentioned and their market opportunity?"

Answer: "We plan to launch two NPS equity schemes and a dynamic asset allocation scheme. These adjustments align with new regulations, allowing more flexible product designs to stimulate the private NPS market, which still has ample growth potential."

This summary encapsulates the major queries raised during the Q&A and the respective detailed answers.