Nippon Life India Asset Management conducted a concall on 24 April 2024 to discuss the financial results for the quarter ended March 2024. Sundeep Sikka, ED&CEO of the company addressed the call:

Highlights:

The company has achieved record high operating profit and the net profit for the quarter ended March 2024 as well as for the year ended March 2024.

The asset under management of the company has increased to Rs 5.24 lakh crore with mutual fund asset growing at a strong pace of 14% on qoq basis and 47% on yoy basis to Rs 4.31 lakh crore end March 2024.

The company has witnessed an improvement in the market share by 30 bps in Q4 and 73 bps in FY2024. The market share has increased to 7.97% with strong growth across all fund categories.

The company was also the fastest growing mutual fund among the top 10 mutual funds.

The company has continued to increase market share for the 4th straight quarter.

The market share in the equity segment increased 9 bps in Q4 and 58 bps in FY2024 to 6.76%.

The company has improved two positions to 4th level in terms of the equity mutual fund AUM excluding arbitrage funds.

Individual AUM has increased by 10% qoq to Rs 257800 crore with market share rising by 8 bps to 7.74%.

On the corporate segment, the AUM has also increased by 16% to Rs 184200 crore with improvement in market share by 70 bps to 8.49%.

The company is the fastest growing AMC in the B30 market recording 9% qoq growth in the AUM to Rs 86200 crore. B30 market share has improved by 6 bps in Q4. B30 accounts for 20% of the AUM of the company as against 18% for the industry.

With 16.5 million unique investors, the company serves one out of 3 mutual fund investors in the country.

The company has continue to grow its SIP book for 11 straight quarters with strong incremental market share of 15%. The SIP market share has increased by 305 bps to 9.1% in FY2024.

About 62% of the SIPs have continued for 5 years and above as compared to 28% for the industry.

More than 75-80% of the SIP is less than Rs 10000 category.

The company continues to be the largest player in the ETF segment with AUM of Rs 111500 crore end March 2024. The market share stands at 16.7% with an improvement of 135 bps in Q4FY2024.

The company has a market share of 60% in the ETF folios and 61% in the ETF volumes on BSE and NSE.

The tax rate was lower for the current quarter due to movement of some investment from the short term to long term and reversal of tax provisions for a previous year after completion of the assessment.

The segment wise yield stands at 63 bps for equity, 25 bps for debt, 10-12 bps for liquid and 16 bps for ETF. The overall yield has declined by 1 bps in Q4FY2024.

Excluding the ESOP related expenses, the operating expenses of the company are expected to increase by 8-10% for FY2025.

The company has also approved ESOPs, the cost of which at Rs 85 to 90 crore would be spread over 4 years. Of this 20% would be recognized in FY2025.

On the mutual fund industry fund, the asset under management has increased by 10% on sequential basis and 34% over a year ago to Rs 54.1 lakh crore end March 2024.

The share of equity assets has surged to 58% from 52% last year.