An AMC's operating leverage

An AMC manages ₹3,00,000 cr of equity AUM at a fee yield of 0.60% and ₹1,50,000 cr of other AUM at 0.20%. Its fixed costs are ₹700 cr a year and its variable costs 10% of revenue. Equity AUM has an elasticity of 1.2 to the market level, including flows; other AUM does not respond to the market (illustrative). (a) Compute revenue, profit and the profit margin. (b) Compute the profit beta (6B.12). (c) The market falls 20%, so equity AUM falls 24%. Compute the new profit and its percentage change, and compare with the beta in (b). Why do they agree exactly here? (d) Using HDFC AMC's FY26 figures (6B.5), explain in three sentences why an AMC's share price can fall more than the market in a bear market even though the AMC takes no credit or market risk on its balance sheet.