Capitaline

Results 27-Jan-22

Analysis

Nippon Life India Asset Management

Mutual fund AUM growth strong at 32%

Nippon Life India Asset Management has posted 18% decline in the net profit to Rs 174.05 crore in the quarter ended December 2021 (Q3FY2022) compared to Rs 211.95 crore in Q3FY2021. However, the company has continued to record strong 26% growth in the revenues to Rs 338.53 crore and strong 44% surge in the operating profit to Rs 212.16 crore.

The other income declined 77% to Rs 30.40 crore in Q3FY2022 from Rs 130.38 crore in Q3FY2021. Interest expense dipped 38% to Rs 0.65 crore. The depreciation declined 17% to Rs 6.45 crore in Q3FY2022. The profit before tax fell 12% to Rs 235.46 crore. The effective tax rose to 26.1% in Q3FY2022 from 21.2% in Q3FY2021. The net profit declined 18% to Rs 174.05 crore in Q3FY2022.

Book value of the company stood at Rs 55.8 per share end December 2021.

Business highlights:

NAM India’s assets under management was Rs 345056 crore end December 2021.

NIMF’s overall AUM market share rose to 7.34% in Q3FY2022- an increase of 22 basis points as against Q4FY2021.

NIMF’s average assets under management was Rs 280601 crore in Q3FY2022- an increase of 32%.

The share of Equity Assets rose to 43% of NIMF’s AUM in Q3FY2022 as against 39% for Q3FY2021.

NIMF has one of the largest retail assets in the Industry, at Rs 77641 crore end December 2021. Retail assets contributed 28% to NIMF’s AUM.

NIMF’s AUM of Rs 48,839 crore (US$ 6.6 billion) end December 2021 came from ‘Beyond the Top 30 cities’ category. This segment forms 18% of NIMF’s AUM against 17% for the Industry.

Individual AUM was Rs 137602 crore end December 2021 and contributed 49% to NIMF’s AUM.

NIMF is one of the largest ETF players with AUM of Rs 52253 crore end December 2021 and a market share of 13%.

NIMF has 1.5 crore investor folios end December 2021, with an annualized systematic book of over Rs 8200 crore.

Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of approx. Rs 4,250 crore end December 2021 across various schemes.

NIMF has geographical presence at over 270 locations pan India end December 2021, and is amongst the highest in the industry.

For Q3FY2022, digital purchase transactions rose to over 7.5 lakh - an increase of 83% as against Q3FY2021. Digital channel contributed 58% to total new purchase transactions.

Sundeep Sikka, ED & CEO, NAM India, said “In Q3, we continued on our path of profitable growth and sustainable value creation amid volatile market conditions, driven by focus on key fundamentals such as investor centricity, strong risk framework, and a robust digitech infrastructure. Overall market share has grown by 22 basis points in 9m FY22. We aim to provide suitable investment avenues to all spectrum of investors and this philosophy has been reflected in our recent fund offerings. We will further build upon this foundation by leveraging our key strengths in the passive and offshore businesses to provide access of differentiated products to millions of existing and prospective investors, in line with their varied individual needs.”

Financial Performance 9MFY2022

Nippon Life India Asset Management has posted 11% increase in the net profit to Rs 569.31 crore in the nine month ended December 2021 (9MFY2022). The operating profit of the company increased 49% to Rs 582.81 crore, while other income declined 35% to Rs 194.52 crore in 9MFY2022. The depreciation declined 22% to Rs 20.33 crore in 9MFY2022. The profit before tax moved up 14% to Rs 754.29 crore. The effective tax was higher at 24.6% in 9MFY2022 from 22.2% in 9MFY2021. The net profit increased 11% to Rs 569.31 crore in 9MFY2022.

Nippon Life India Asset Management: Consolidated Results
	2112 (3)	2012 (3)	Var %	2112 (9)	2012 (9)	Var %	2103 (12)	2003 (12)	Var %
Sales	338.53	268.46	26	968.67	760.24	27	1062.14	1202.98	-12
OPM %	62.7%	54.7%		60.2%	51.5%		52.5%	50.6%
OP	212.16	146.96	44	582.81	391.66	49	557.52	608.50	-8
Other Income	30.40	130.38	-77	194.52	297.14	-35	357.20	-9.77	LP
PBDIT	242.56	277.34	-13	777.33	688.80	13	914.72	598.73	53
Interest	0.65	1.05	-38	2.71	3.48	-22	4.43	5.67	-22
PBDT	241.91	276.29	-12	774.62	685.32	13	910.29	593.06	53
Depreciation	6.45	7.77	-17	20.33	26.17	-22	33.27	33.25	0
PBT	235.46	268.52	-12	754.29	659.15	14	877.02	559.81	57
Tax	61.50	56.99	8	185.76	146.27	27	197.63	144.05	37
PAT	173.96	211.53	-18	568.53	512.88	11	679.39	415.76	63
Minority interest	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Profit/Loss of Associate Company	0.09	0.42	-79	0.78	0.68	15	0.94	-0.51	LP
PAT	174.05	211.95	-18	569.31	513.56	11	680.33	415.25	64
EPS (Rs)*	11.2	13.6		12.2	11.0		11.0	6.7
EPS is annualized on latest equity of Rs 621.82 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 allots 7,980 equity shares under ESOP
( Corporate News - 25-Sep-24 11:56 )

Nippon Life India Asset Management announced change in CIO
( Corporate News - 02-Nov-22 19:07 )

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

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 allots 19,733 equity shares under ESOP
( Corporate News - 22-Jun-22 18:27 )

Board of Nippon Life India Asset Mgt. recommends Interim Dividend
( Corporate News - 20-Oct-22 09:55 )

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

Nippon Life India Asset Management
( Results - Analysis 29-Jul-22 00:35 )

Nippon Life India AIF Management appoints Head of Alternative Assets for its AIF business
( Corporate News - 18-May-23 13:56 )

Nippon Life India Asset Mgt. announces board meeting date
( Corporate News - 01-Apr-22 09:48 )

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