UTI AMC LTD.

UTI Mutual Fund

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Introduction
 UTI Asset Management Company Ltd. (UTI AMC) was incorporated on November 14, 2002

 UTI AMC has been promoted by four sponsors, namely, State Bank of India, Life Insurance
Corporation of India, Bank of Baroda, and Punjab National Bank.

 It is the holding company for UTI Venture Funds Management Company which manages venture
funds and UTIInternational Ltd., which markets offshore funds to overseas investors. Another
subsidiary is UTI Retirement Solutions Ltd., which acts as the fund manager to pension fund
schemes.

 UTI AMC is appointed as the portfolio manager by the Government of India for the National
Skill Development Fund, funds of Postal Life Insurance, funds of Employees Provident Fund
(EPFO), funds of Coal Mine Provident Fund (CMPFO) & Employees State Insurance Fund which
are predominantly debt-oriented funds.

 The management fees from domestic mutual funds account for 72.7% of the total income of the
company.

Key Financial Metrics and its

Interpretation
1. Earning per Equity Share
 Basic earnings per share are computed and disclosed using the weighted average number of
equity shares outstanding during the period.

  Earning per share (eps) also showed a decline from rs.31.31cr in 2018 to rs.28.14cr in 2019.

 Earnings per equity share is an important financial measure, which indicates the profitability of
the company.

Yea 2017- 2018-

r 2018 2019

31.31 28.14 
2.Net Profit
 The number of years to recover an investment in a given business is calculated based on
previous net profit records. Investors look at a company's profitability history to assess
the risks of investing in a company A healthy and consistent net profit figure gives
investors the confidence that they will get a return.

  We can see that profit after tax has declined as compared to the previous year which may
not be good for short-term investors and hence it would result in hesitation on the part of
investors to invest in UTI AMC.

YEARS 2018- 2017-

19 18

PROFIT 496.64 539.15

BEFORE TAX

PROFIT AFTER 351.94 396.92

TAX

2. Cash Flows
 The cash flow from operating activities has declined from the previous year which may
not be a good sign for an investor as this shows that the company is not bringing any real
cash flow on the operating line.

 The cash flow from investing activities has increased from the previous year due to the
gain from the sale of investment as well as a decline in the purchase of a property.

 The cash flow from financing activities has declined from the previous year as the
company has paid out more dividends this year and the effects of foreign exchange
fluctuations have declined. Also, we see that the amount has remained negative for both
years which indicates that the company has been paying out dividends constantly.

                  YEARS 2018-19 2017-18

(crores (crores
) )

CASH FLOW FROM OPERATING

ACTIVITIES (104.38 261.22
)
CASH FLOW FROM FINANCIAL
ACTIVITIES (76.40) (37.15)

CASH FLOW FROM INVESTING 155.82 (185.10

ACTIVITIES )