Capitaline

Results 24-Jan-25

Analysis

Nippon Life India Asset Management

Healthy AUM growth, stable core performance

Nippon Life India Asset Management has posted 4% rise in the net profit to Rs 295.36 crore in the quarter ended December 2024 (Q3FY2025). The income from operation of Nippon Life India Asset Management increased 39% to Rs 587.89 crore in Q3FY2025. Overall OPM has increased to 65.6% in Q3FY2025 from 61.2% in Q3FY2024, leading to 49% jump in operating profit to Rs 385.69 crore.

The employee expenses increased 21% to Rs 106.49 crore, while other expenses moved up 26% to Rs 95.71 crore in Q3FY2025. Other expenditure as a percentage of total income moved down to 16.28% from 17.96% in Q3FY2024. The staff cost as a percentage of total income declined to 18.11% from 20.82%.

Other income dipped 86% to Rs 15.41 crore. Interest cost declined 1% to Rs 1.65 crore. Depreciation moved up 19% to Rs 7.74 crore. PBT moved up 9% to Rs 391.71 crore.

The effective tax rate increased to 24.6% in Q3FY2025 compared to 20.7% in Q3FY2024. Provision for tax was expense of Rs 96.45 crore, compared to Rs 74.05 crore. Profit after tax rose 4% to Rs 295.26 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies decreased 63% to Rs 0.11 crore. Finally, Net profit attributable to owners moved up 4% to Rs 295.36 crore.

Book value of the company stood at Rs 68.9 per share end December 2024.

Business highlights:

NAM India’s assets under management stood at Rs 6.56 lakh crore end December 2024.

For the quarter ended December 2024, NIMF’s average assets under management stood at Rs 5.70 lakh crore - an increase of 51% YoY and 4% QoQ.

For the quarter ended December 2024, share of Equity Assets rose to 51.1% of NIMF’s AUM as against 48.6% end December 2023.

NIMF has one of the largest retail assets in the Industry, at Rs 1.78 lakh crore. Retail assets contributed 31% to NIMF’s AUM vs Industry average of 27%.

High Networth Individual (HNI) AUM at Rs 1.69 lakh crore – up 50% yoy & market share growth of 58 bps yoy.

Individual AUM (Retail + HNI) was Rs 3.47 lakh crore - an increase of 48% yoy. This segment contributed 60% to NIMF’s AUM.

NIMF’s AUM from ‘Beyond the Top 30 cities’ (B-30) stood at Rs 1.18 lakh crore - higher by 79% yoy. This forms 20.4% of NIMF’s AUM vs. 18.5% for the Industry.

NIMF’s quarterly systematic flows rose by 67% yoy to Rs 9910 crore. This increase resulted in an annualised systematic book of Rs 40400 crore.

NIMF is one of the largest ETF players with AUM of Rs 1.50 lakh crore and a market share of 18.14%.

Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of Rs 6980 crore across various schemes.

NIMF has geographical presence at 265 locations pan India and is amongst the highest in the industry.

Digital purchase transactions rose to 4.08 mn in Q3FY25, up from 1.69 mn in Q3FY24. Digital channel contributed 73% to new purchase transactions in Q3FY25.

Financial Performance 9MFY2025

The income from operation of Nippon Life India Asset Management increased 42% to Rs 1664.15 crore in 9MFY2025. Overall OPM has increased to 64.7% in 9MFY2025 from 59.8% in 9MFY2024, leading to 53% rise in operating profit to Rs 1076.46 crore. Other income declined 12% to Rs 266.99 crore. Interest cost increased 6% to Rs 4.94 crore. Depreciation rose 1% to Rs 22.00 crore. PBT moved up 35% to Rs 1316.51 crore.

The effective tax rate increased to 25.0% in 9MFY2025 compared to 21.9% in 9MFY2024. Provision for tax was expense of Rs 329.10 crore, compared to Rs 214.75 crore. Profit after tax increased 29% to Rs 987.41 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies decreased 51% to Rs 0.38 crore. Finally, Net profit attributable to owners increased 29% yoy to Rs 987.79 crore in 9MFY2025.

Nippon Life India Asset Management: Consolidated Results
	2412 (3)	2312 (3)	Var %	2412 (9)	2312 (9)	Var %	2403 (12)	2303 (12)	Var %
Sales	587.89	423.32	39	1664.15	1174.95	42	1643.22	1349.82	22
OPM %	65.6	61.2		64.7	59.8		60.5	58.9
OP	385.69	259.16	49	1076.46	702.99	53	993.74	794.71	25
Other Income	15.41	107.07	-86	266.99	301.82	-12	394.12	166.79	136
PBDIT	401.10	366.23	10	1343.45	1004.81	34	1387.86	961.50	44
Interest	1.65	1.66	-1	4.94	4.64	6	6.24	3.97	57
PBDT	399.45	364.57	10	1338.51	1000.17	34	1381.62	957.53	44
Depreciation	7.74	6.52	19	22.00	21.80	1	29.14	29.79	-2
PBT	391.71	358.05	9	1316.51	978.37	35	1352.48	927.74	46
Tax	96.45	74.05	30	329.10	214.75	53	246.23	204.81	20
PAT	295.26	284.00	4	987.41	763.62	29	1106.25	722.93	53
Minority interest	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Profit/Loss of Associate Company	0.10	0.27	-63	0.38	0.78	-51	1.07	0.40	168
PAT	295.36	284.27	4	987.79	764.40	29	1107.32	723.33	53
EPS (Rs)*	18.6	17.9		20.8	16.1		17.5	11.4
*EPS is annualized on latest equity of Rs 633.74 crore, face value of Rs 10 each, Source: Capitaline Corporate Database

Previous News

Nippon Life India Asset Management consolidated net profit rises 40.99% in the June 2024 quarter
( Results - Announcements 19-Jul-24 17:24 )

Nippon Life India Asset Management allots 3.61 lakh equity shares
( Corporate News - 27-Jun-24 17:47 )

Nippon Life India Asset Management collaborates with DWS
( Corporate News - 12-Sep-22 15:29 )

Nippon Life India Asset Mgt. schedules board meeting
( Corporate News - 27-Sep-24 10:14 )

Nippon Life India Asset Management
( Analyst Meet / AGM - Conference Call 25-Apr-24 13:16 )

Nippon Life India Asset Management allots 27,398 equity shares under ESOP
( Corporate News - 08-Dec-21 12:19 )

Nippon Life India Asset Mgt. to conduct board meeting
( Corporate News - 01-Oct-21 11:45 )

Nippon Life, DWS to launch European-listed Indian Government Bond ETF
( Hot Pursuit - 12-Sep-22 15:42 )

Nippon Life India Asset Management allots 2.43 equity shares under ESOP
( Corporate News - 01-Jan-21 10:43 )

Nippon Life AMC hits 52-week high after Q3 PAT jumps 38% YoY to Rs 284 cr
( Hot Pursuit - 30-Jan-24 11:22 )

Nippon Life India Asset Management consolidated net profit rises 36.34% in the December 2019 quarter
( Results - Announcements 23-Jan-20 15:42 )