Results     25-Oct-24
Analysis
Nippon Life India Asset Management
Robust AUM growth, market share improving
Nippon Life India Asset Management has posted strong 47% jump in the net profit to Rs 360.10 crore in the quarter ended September 2024 (Q2FY2025). The income from operation of Nippon Life India Asset Management increased 43.73% to Rs 571.3 crore in Q2FY2025. Overall OPM has increased to 65.53% in Q2FY2025 from 60.73% in Q2FY2024, leading to 55.09% rise in operating profit to Rs 374.36 crore. Other expenditure as a percentage of total income moved down to 15.76% from 19.17% in Q2FY2025. The staff cost as a percentage of total income declined to 18.71% from 20.10% in Q2FY2025.

Other income increased 55.08% to Rs 120.78 crore. Interest cost declined 1.78% to Rs 1.66 crore. Depreciation moved up 3.34% to Rs 7.43 crore. PBT moved up 56.59% to Rs 486.05 crore.

The effective tax rate increased to 25.94% in Q2FY2025 compared to 21.31% in Q2FY2024. Provision for tax was expense of Rs 126.07 crore, compared to Rs 66.14 crore. Profit after tax rose 47.38% to Rs 359.98 crore.

Profit attributable to non-controlling interest was nil in both the periods.The share of profit of associate companies decreased 25% to Rs 0.12 crore. Finally, Net profit attributable to owners moved up 47.33% to Rs 360.10 crore.

Book value of the company stood at Rs 68.3 per share end September 2024.

Business highlights:

NAM India’s assets under management stood at Rs 6.54 lakh crore.

For the quarter ended September 30, 2024, NIMF’s average assets under management stood at Rs 5.49 lakh crore - an increase of 57% YoY and 14% QoQ.

For the quarter ended September 30, 2024, share of Equity Assets rose to 51.1% of NIMF’s AUM as against 46.8% end September 2023.

NIMF has one of the largest retail assets in the Industry, at Rs 1.74 lakh crore. Retail assets contributed 31% to NIMF’s AUM vs Industry average of 28%.

High Networth Individual (HNI) AUM at Rs 1.65 lakh crore – up 15% QoQ & market share growth of 18 bps QoQ.

Individual AUM (Retail + HNI) was Rs 3.39 lakh crore - an increase of 14% QoQ. This segment contributed 60% to NIMF’s AUM.

NIMF’s AUM from ‘Beyond the Top 30 cities’ (B-30) stood at Rs 1.15 lakh crore - higher by 15% QoQ. This forms 20.5% of NIMF’s AUM vs. 18.5% for the Industry.

NIMF’s quarterly systematic flows rose by 19.9% QoQ to Rs 90.3 bn. This increase resulted in an annualised systematic book of Rs 376 bn.

NIMF is one of the largest ETF players with AUM of Rs 1.48 lakh crore and a market share of 18.17%.

Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of Rs 67.7 bn across various schemes.

NIMF has geographical presence at 264 locations pan India and is amongst the highest in the industry.

Digital purchase transactions rose to 3.97 mn in Q2 FY25, up from 1.52 mn in Q2 FY24. Digital channel contributed 70% to new purchase transactions in Q2 FY25.

Financial Performance H1FY2025

The income from operation of Nippon Life India Asset Management increased 43.19% to Rs 1076.26 crore in H1FY2025. Overall OPM has increased to 64.18% in H1FY2025 from 59.05% in H1FY2024, leading to 55.64% rise in operating profit to Rs 690.77 crore. Other expenditure as a percentage of total income moved down to 16.12% from 19.95% in H1FY2025. The staff cost as a percentage of total income declined to 19.70% from 21% in H1FY2025.

Other income increased 29.18% to Rs 251.58 crore. Interest cost increased 10.40% to Rs 3.29 crore. Depreciation moved down 6.68% to Rs 14.26 crore. PBT moved up 49.08% to Rs 924.80 crore.

The effective tax rate increased to 25.16% in H1FY2025 compared to 22.68% in H1FY2024. Provision for tax was expense of Rs 232.65 crore, compared to Rs 140.7 crore. Profit after tax rose 44.31% to Rs 692.15 crore.

Profit attributable to non-controlling interest was nil in both the periodsThe share of profit of associate companies decreased 45.10% to Rs 0.28 crore. Finally, Net profit attributable to owners rose 44.22% yoy to Rs 692.43 crore in H1FY2025.

Nippon Life India Asset Management: Consolidated Results

 

2409 (3)

2309 (3)

Var %

2409 (6)

2309 (6)

Var %

2403 (12)

2303 (12)

Var %

Sales

571.30

397.48

44

1076.26

751.63

43

1643.22

1349.82

22

OPM %

65.5

60.7

 

64.2

59.0

 

60.5

58.9

 

OP

374.36

241.39

55

690.77

443.83

56

993.74

794.71

25

Other Income

120.78

77.88

55

251.58

194.75

29

394.12

166.79

136

PBDIT

495.14

319.27

55

942.35

638.58

48

1387.86

961.50

44

Interest

1.66

1.69

-2

3.29

2.98

10

6.24

3.97

57

PBDT

493.48

317.58

55

939.06

635.60

48

1381.62

957.53

44

Depreciation

7.43

7.19

3

14.26

15.28

-7

29.14

29.79

-2

PBT

486.05

310.39

57

924.80

620.32

49

1352.48

927.74

46

Tax

126.07

66.14

91

232.65

140.70

65

246.23

204.81

20

PAT

359.98

244.25

47

692.15

479.62

44

1106.25

722.93

53

Minority interest

0.00

0.00

-

0.00

0.00

-

0.00

0.00

-

Profit/Loss of Associate Company

0.12

0.16

-25

0.28

0.51

-45

1.07

0.40

168

PAT

360.10

244.41

47

692.43

480.13

44

1107.32

723.33

53

EPS (Rs)*

22.7

15.4

 

21.9

15.2

 

17.5

11.4

 

*EPS is annualized on latest equity of Rs 633.23 crore, face value of Rs 10 each, Source: Capitaline Corporate Database

 



Previous News
  Nippon Life India Asset Management allots 1.01 lakh equity shares under ESOP
 ( Corporate News - 13-Nov-24   19:23 )
  Nippon Life India Asset Management allots 3.63 lakh equity shares under ESOP
 ( Corporate News - 19-May-22   09:06 )
  Nippon Life India Asset Management consolidated net profit rises 47.33% in the September 2024 quarter
 ( Results - Announcements 25-Oct-24   07:34 )
  Nippon Life India Asset Mgt. to discuss results
 ( Corporate News - 08-May-20   10:05 )
  Reliance Nippon Life Asset Mgmt. fixes record date for second interim dividend
 ( Market Beat - Reports 02-May-19   14:58 )
  Nippon Life India Asset Management allots 6.31 lakh equity shares under ESOP
 ( Corporate News - 12-Mar-24   16:10 )
  Nippon Life India Asset Management allots 29,049 equity shares
 ( Corporate News - 13-Jul-22   18:05 )
  Board of Nippon Life India Asset Mgt. recommends interim dividend
 ( Corporate News - 24-Oct-24   19:07 )
  Nippon Life India Asset Management consolidated net profit rises 38.56% in the December 2023 quarter
 ( Results - Announcements 30-Jan-24   07:26 )
  Nippon Life India Asset Management acquires 6.3% stake in AMC Repo Clearing
 ( Corporate News - 21-Sep-21   20:03 )
  AMC shares in demand after SEBI defers decision on TER cut
 ( Hot Pursuit - 30-Jun-23   09:56 )
Other Stories
  Glaxosmithkline Pharmaceuticals
  15-Feb-25   16:05
  Munjal Auto Industries
  15-Feb-25   15:59
  ITL Industries
  15-Feb-25   15:00
  Ingersoll-Rand (India)
  15-Feb-25   14:27
  Rail Vikas Nigam
  15-Feb-25   14:19
  Firstsource Solutions
  14-Feb-25   20:15
  Kalpataru Projects International
  14-Feb-25   11:24
  United Breweries
  14-Feb-25   10:52
  Hindalco Industries
  14-Feb-25   10:28
  Ipca Laboratories
  14-Feb-25   10:20
Back Top