Capitaline

Results 29-Jul-22

Analysis

Nippon Life India Asset Management

Stable market share

Nippon Life India Asset Management has posted 37% decline in the net profit to Rs 114.08 crore in the quarter ended June 2022 (Q1FY2023). The income from operation increased 4.58% to Rs 316.1 crore as on 30 June 2022. Overall OPM eased to 56.65% in Q1FY2023 from 58.68% in Q1FY2022, leading to 0.96% rise in operating profit to Rs 179.07 crore. Other expenditure as a percentage of total income moved up to 18.65% from 18.28% in Q1FY2023. The staff cost as a percentage of total income increased to 24.70% from 23.05% in Q1FY2023. Other income was debit of Rs 16.73 crore compared to credit of Rs 66.91 crore. Interest cost increased 1.08% to Rs 0.94 crore. Depreciation moved down 6.84% to Rs 6.81 crore. After which, PBT moved down 34.50% to Rs 154.59 crore.

The effective tax rate increased to 26.04% in Q1FY2023 compared to 23.15% in Q1FY2022. Provision for tax was expense of Rs 40.25 crore, compared to Rs 54.65 crore. Profit after tax fell 36.96% to Rs 114.34 crore. Profit attributable to non-controlling interest was nil in both the periods.Finally, Net profit attributable to owners moved down 37.16% to Rs 114.08 crore.

Book value of the company stood at Rs 57.7 per share end June 2022.

Business highlights:

NAM India’s assets under management was Rs 330684 crore end June 2022. For Q1FY2023, NIMF’s overall AUM market share rose to 7.40% - an increase of 16 basis points as against Q1FY2022

For Q1FY2023, NIMF’s average assets under management were Rs 279431 crore - an increase of 16%.

For Q1FY2023, share of Equity Assets rose to 42% of NIMF’s AUM as against 41% for Q1FY2022

As on June 2022, NIMF has one of the largest retail assets in the Industry, at Rs 74101 crore. Retail assets contributed 27% to NIMF’s AUM.

As on June 2022, NIMF’s AUM of Rs 48438 crore from ‘Beyond the Top 30 cities’ (B-30) category. This segment forms 17.8% of NIMF’s AUM vis-à-vis 16.6% for the Industry

As on June 2022, Individual AUM was Rs 136742 crore and contributed 50% to NIMF’s AUM.

For Q1FY2023, NIMF is one of the largest ETF players with AUM of Rs 60091 crore and a market share of 14%.

NIMF has 1.8 crore investor folios end June 2022, with an annualised systematic book of over Rs 9600 crore.

Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of Rs 4719 crore (US$ 597 million) across various schemes end June 2022.

NIMF has geographical presence at 275 locations pan India, and is amongst the highest in the industry

For Q1FY2023, digital purchase transactions rose to over 7.5 lakh - an increase of 25% as against Q1FY2022. Digital channel contributed 55% to total new purchase transactions.

Sundeep Sikka, ED & CEO, NAM India, said “domestic economy as well as the Mutual Fund industry were impacted in Q1 due to macro headwinds. In this dynamic investment environment, “Investors’ interest” continues to be our prime focus. We remain committed in supporting our clients pursue their long-term financial goals and add sustainable value.

Today, NAM India is humbled to have the faith and trust of over 1.8 crore investors, which is the largest investor base in the MF industry. NIMF’s overall market share also improved by 16 basis points. The granularity of our distribution, consistent fund performance, strong governance architecture and de-risked business model have created beneficial opportunities, even in tough macro conditions. With an 100% investor-centric approach, our endeavour is to consistently create a better future for all stakeholders.”

Financial Performance FY2022

Nippon Life India Asset Management recorded 9.38% growth in the net profit to Rs 744.16 crore in FY2022. The income from operation increased 23.02% to Rs 1306.64 crore as on 31 June 2022.

Overall OPM has increased to 60.52% as on 31 June 2022 from 52.49% as on 31 June 2021, leading to 41.83% rise in operating profit to Rs 790.72 crore. Other expenditure as a percentage of total income moved down to 17.27% from 21.96% as on 31 June 2022. The staff cost as a percentage of total income declined to 22.22% from 25.55% as on 31 June 2022.

Other income declined 35.89% to Rs 228.99 crore. There is 13.77% fall in interest cost at Rs 3.82 crore and 18.18% decline in depreciation to Rs 27.22 crore, Profit before tax increased 12.73% to Rs 988.67 crore. There is no extraordinary item. After which, PBT increased 12.73% to Rs 988.67 crore.

The effective tax rate increased to 24.81% as on 31 June 2022 compared to 22.53% as on 31 June 2021. Profit after tax rose 9.42% to Rs 743.37 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies decreased 15.96% to Rs 0.79 crore. Finally, Net profit attributable to owners rose 9.38% yoy to Rs 744.16 crore in FY2022.

Nippon Life India Asset Management: Consolidated Results
	2206 (3)	2106 (3)	Var %	2203 (12)	2103 (12)	Var %
Sales	316.10	302.27	5	1306.64	1062.14	23
OPM %	56.6%	58.7%		60.5%	52.5%
OP	179.07	177.36	1	790.72	557.52	42
Other Income	-16.73	66.91	PL	228.99	357.20	-36
PBDIT	162.34	244.27	-34	1019.71	914.72	11
Interest	0.94	0.93	1	3.82	4.43	-14
PBDT	161.40	243.34	-34	1015.89	910.29	12
Depreciation	6.81	7.31	-7	27.22	33.27	-18
PBT	154.59	236.03	-35	988.67	877.02	13
Tax	40.25	54.65	-26	245.30	197.63	24
PAT	114.34	181.38	-37	743.37	679.39	9
Minority interest	0.00	0.00	-	0.00	0.00	-
Profit/Loss of Associate Company	-0.26	0.16	PL	0.79	0.94	-16
PAT	114.08	181.54	-37	744.16	680.33	9
EPS (Rs)*	7.3	11.7		12.0	10.9
EPS is annualized on latest equity of Rs 622.51 crore, face value of Rs 10 each, PL: Profit to loss, LP: Loss to Profit Source: Capitaline Corporate Database*

Previous News

Nippon Life India Asset Management consolidated net profit rises 106.63% in the June 2023 quarter
( Results - Announcements 27-Jul-23 16:40 )

Nippon Life India Asset Management
( Results - Analysis 27-Jul-23 19:09 )

NAM India Q4 PAT up 13% YoY; AuM at Rs 3.62 lakh crore
( Hot Pursuit - 26-Apr-23 09:47 )

Nippon Life India Asset Management announces resignation of company secretary
( Corporate News - 06-Mar-24 18:03 )

Nippon Life India Asset Mgt. to conduct board meeting
( Corporate News - 27-Mar-24 10:30 )

Nippon Life India Asset Management consolidated net profit rises 13.25% in the March 2023 quarter
( Results - Announcements 26-Apr-23 07:37 )

Nippon Life India Asset Management consolidated net profit rises 17.87% in the December 2022 quarter
( Results - Announcements 31-Jan-23 07:38 )

Nippon Life India Asset Mgt. to hold AGM
( Corporate News - 26-Apr-23 11:37 )

Board of Nippon Life India Asset Mgt. recommends final dividend
( Corporate News - 26-Apr-23 11:37 )

Nippon Life India Asset Management consolidated net profit declines 17.88% in the December 2021 quarter
( Results - Announcements 27-Jan-22 16:51 )

Nippon Life India Asset Management
( Results - Analysis 27-Jan-22 20:32 )