Capitaline

Results 27-Oct-21

Analysis

Nippon Life India Asset Management

Strong AUM growth at 45%

Nippon Life India Asset Management has posted 47% surge in the net profit to Rs 213.72 crore in the quarter ended September 2021 (Q2FY2022) compared to Rs 145.35 crore in Q2FY2021, driven by strong growth in AUM and cost efficiencies.

The operating profit of the company surged 42% to Rs 193.29 crore, while other income jumped 53% to Rs 97.21 crore in Q2FY2022 from Rs 63.70 crore in Q2FY2021.

Interest expense declined 3% to Rs 1.13 crore. The depreciation declined 17% to Rs 6.57 crore in Q2FY2022. The profit before tax moved up 48% to Rs 282.80 crore. The effective tax rose to 24.6% in Q2FY2022 from 23.9% in Q2FY2021. The net profit increased 47% to Rs 213.72 crore in Q2FY2022.

Business highlights:

Assets under management increased 45% to Rs 400800 crore end September 2021 over Rs 276700 crore end September 2020.

Average Mutual Fund assets under management moved up 33% to Rs 265500 crore end September 2021.

Overall AUM market share rose to 7.33% in Q2FY2022 up by 9 basis points from Q1FY2022.

The share of Equity Assets rose to 43% of NIMF’s AUM as against 39% for Q2FY2021

The company is one of the largest retail assets in the Industry, at Rs 77657 crore end September 2021. Retail assets contributed 28% to NIMF’s AUM

NIMF’s AUM of Rs. 48,843 crore (US$ 6.6 billion) from ‘Beyond the Top 30 cities’ category. This segment forms 18% of NIMF’s AUM vis-à-vis 16% for the Industry

Individual AUM was Rs. 137,257 crore and contributed 50% to NIMF’s AUM

IMF is one of the largest ETF players with AUM of Rs. 49,640 crore and a market share of 13%.

NIMF has 1.3 crore investor folios, with an annualized systematic book of over Rs 7800 crore.

Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of approx. Rs 4000 crore across various schemes

NIMF has geographical presence at over 270 locations pan India, and is amongst the highest in the industry.

Digital purchase transactions rose to over 7 lakh - an increase of 55% as against Q2FY2021.

Digital channel contributed 53% to total new purchase transactions.

Extensive distribution and a diversified product suite helped to add over 1.1 million investors vs. 2.8 million for the Industry in Q2FY22.

Sundeep Sikka, ED & CEO, NAM India, said “Q2 was a strong quarter on all important parameters. Higher operating profit (+46%) and wider investor base (+39%) was driven by strong fund performance, robust risk management, and granular distribution network. Overall market share has grown by 21 basis points in H1. We continue to focus on profitable growth, strengthening the digital ecosystem and expanding the overall industry size.”

Financial Performance H1FY2022

Nippon Life India Asset Management has posted 31% increase in the net profit to Rs 395.26 crore in the half year ended September 2021 (H1FY2022). The operating profit of the company increased 51% to Rs 370.65 crore, while other income declined 2% to Rs 164.12 crore in H1FY2022. The depreciation declined 25% to Rs 13.88 crore in H1FY2022. The profit before tax moved up 33% to Rs 518.83 crore. The effective tax was higher at 24% in H1FY2022 from 22.9% in H1FY2021. The net profit increased 31% to Rs 395.26 crore in H1FY2022.

Nippon Life India Asset Management: Consolidated Results
	2109 (3)	2009 (3)	Var %	2109 (6)	2009 (6)	Var %	2103 (12)	2003 (12)	Var %
Sales	327.87	258.66	27	630.14	491.78	28	1062.14	1202.98	-12
OPM %	59.0%	52.7%		58.8%	49.8%		52.5%	50.6%
OP	193.29	136.33	42	370.65	244.70	51	557.52	608.50	-8
Other Income	97.21	63.70	53	164.12	166.76	-2	357.20	-9.77	LP
PBDIT	290.50	200.03	45	534.77	411.46	30	914.72	598.73	53
Interest	1.13	1.17	-3	2.06	2.43	-15	4.43	5.67	-22
PBDT	289.37	198.86	46	532.71	409.03	30	910.29	593.06	53
Depreciation	6.57	7.90	-17	13.88	18.40	-25	33.27	33.25	0
PBT	282.80	190.96	48	518.83	390.63	33	877.02	559.81	57
Tax	69.61	45.73	52	124.26	89.28	39	197.63	144.05	37
PAT	213.19	145.23	47	394.57	301.35	31	679.39	415.76	63
Minority interest	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Profit/Loss of Associate Company	0.53	0.08	563	0.69	0.26	165	0.94	-0.51	-284
PAT	213.72	145.31	47	395.26	301.61	31	680.33	415.25	64
EPS (Rs)*	13.8	9.4		12.7	9.7		11.0	6.7
*EPS is annualized on latest equity of Rs 621.18 crore, face value of Rs 10 each, Source: Capitaline Corporate Database

Previous News

Nippon Life India Asset Management fixes record date for final dividend
( Market Beat - Reports 24-Apr-24 18:19 )

Nippon Life India Asset Management allots 12,962 equity shares under ESOP
( Corporate News - 06-Apr-23 18:47 )

Volumes spurt at Nippon Life India Asset Management Ltd counter
( Hot Pursuit - 20-Dec-23 11:00 )

Board of Nippon Life India Asset Management appoints Head Product
( Corporate News - 24-Apr-24 18:21 )

Nippon Life India Asset Management consolidated net profit rises 73.17% in the March 2024 quarter
( Results - Announcements 24-Apr-24 14:39 )

Nippon Life India Asset Mgt. to discuss results
( Corporate News - 01-Jul-22 10:12 )

Nippon Life India Asset Management allots 2.44 lakh equity shares
( Corporate News - 04-Sep-21 10:33 )

Nippon Life India Asset Management allots 1.30 lakh equity shares under ESOP
( Corporate News - 17-Dec-21 17:17 )

Nippon Life India Asset Management allots 3.69 lakh equity shares under ESOP
( Corporate News - 19-Aug-22 18:45 )

Nippon Life India Asset Management
( Results - Analysis 28-Oct-20 18:42 )

Nippon Life AMC hits record high as Q4 PAT soars 73% YoY
( Hot Pursuit - 24-Apr-24 15:23 )