Capitaline

Results 31-Jan-23

Analysis

Nippon Life India Asset Management

AUM up 4% yoy

Nippon Life India Asset Management has posted 18% increase in the net profit to Rs 205.16 crore in the quarter ended December 2022 (Q3FY2023). The income from operation increased 5% to Rs 353.81 crore in Q3FY2023. Overall OPM eased to 60.3% in Q3FY2023 from 62.7% in Q3FY2022, leading to 1% rise in operating profit to Rs 213.28 crore. Other expenditure as a percentage of total income moved up to 18.61% from 15.80% in Q3FY2022. The staff cost as a percentage of total income declined to 21.11% from 21.53% in Q3FY2022.

Other income increased 104% to Rs 61.93 crore. Interest cost increased 66% to Rs 1.08 crore. Depreciation moved up 20% to Rs 7.74 crore. PBT moved up 13.14% to Rs 266.39 crore.

The effective tax rate declined to 23.12% in Q3FY2023 compared to 26.12% in Q3FY2022. Provision for tax was expense of Rs 61.58 crore, compared to Rs 61.5 crore. Profit after tax rose 17.73% to Rs 204.81 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies increased 289% to Rs 0.35 crore. Finally, Net profit attributable to owners moved up 17.87% to Rs 205.16 crore.

Book value of the company stood at Rs 57.0 per share end December 2022.

Business highlights:

NAM India’s assets under management was Rs 360292 crore at end December 2022, up 4% over December 2021

NIMF’s average assets under management was Rs 292803 crore in Q3FY2023- an increase of 4%

The share of Equity Assets rose to 44% of NIMF’s AUM in Q3FY2023 as against 43% for Q2FY2023

NIMF has one of the largest retail assets in the Industry, at Rs 87507 crore end December 2022. Retail assets contributed 30% to NIMF’s AUM

NIMF’s AUM of Rs 56229 crore at end December 2022 from ‘Beyond the Top 30 cities’ (B-30) category - an increase of 15%. This segment forms 19.2% of NIMF’s AUM against 17.1% for the Industry

Individual AUM (Retail + HNI) was Rs 162140 crore end December 2022- an increase of 18%. This segment contributed 55% to NIMF’s AUM

NIMF’s systematic book rose by 50% to Rs 1027 crore end December 2022. This increase results in an annualised systematic book of over Rs 12300 crore

NIMF is one of the largest ETF players with AUM of Rs 68290 crore in Q3FY2023 and a market share of 14%

Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of over Rs 5300 crore end December 2022 across various schemes

NIMF has geographical presence at 270 locations pan India, and is amongst the highest in the industry end December 2022.

The digital purchase transactions rose to 9.0 lakh in Q3FY2023- an increase of 19% as against Q3FY2022. Digital channel contributed 59% to total new purchase transactions

Sundeep Sikka, ED & CEO, NAM India, said “While 9M was a volatile quarter with a positive bias from a macro standpoint, we grew our assets in the desired segments and increased profitability, driven by emphasis on “investors’ interest”, aided by superior fund performance, strong risk management and granular distribution base.

I am happy to state that the last few quarters have seen a continual rise in NIMF’s market share in SIP flows as well as in the Individual and B-30 categories, driving improvement in equity market share. We expect to continue on our journey of regaining our market share across segments, with keen focus on the bottom line. Consistent value addition for all stakeholders remains our key mantra.”

Financial Performance 9MFY2023

The income from operation increased 3% to Rs 1001.48 crore in 9MFY2023. Overall OPM eased to 58.50% in 9MFY2023 from 60.17% in 9MFY2022, leading to 0.53% rise in operating profit to Rs 585.87 crore. Other expenditure as a percentage of total income moved up to 18.61% from 17.56% in 9MFY2023. The staff cost as a percentage of total income increased to 22.89% from 22.27% in 9MFY2023.

Other income declined 35% to Rs 127.1 crore. Interest cost increased 4% to Rs 2.81 crore. Depreciation moved up 6% to Rs 21.63 crore. After which, PBT moved down 9% to Rs 688.53 crore.

The effective tax rate declined to 23.72% in 9MFY2023 compared to 24.63% in 9MFY2022. Provision for tax was expense of Rs 163.34 crore, compared to Rs 185.76 crore. Profit after tax fell 7.62% to Rs 525.19 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies decreased 85% to Rs 0.12 crore. Finally, Net profit attributable to owners fell 8% yoy to Rs 525.31 crore in 9MFY2023.

Nippon Life India Asset Management: Consolidated Results
	2212 (3)	2112 (3)	Var %	2212 (9)	2112 (9)	Var %	2203 (12)	2103 (12)	Var %
Sales	353.81	338.53	5	1001.48	968.67	3	1306.64	1062.14	23
OPM %	60.3%	62.7%		58.5%	60.2%		60.5%	52.5%
OP	213.28	212.16	1	585.87	582.81	1	790.72	557.52	42
Other Income	61.93	30.40	104	127.10	194.52	-35	228.99	357.20	-36
PBDIT	275.21	242.56	13	712.97	777.33	-8	1019.71	914.72	11
Interest	1.08	0.65	66	2.81	2.71	4	3.82	4.43	-14
PBDT	274.13	241.91	13	710.16	774.62	-8	1015.89	910.29	12
Depreciation	7.74	6.45	20	21.63	20.33	6	27.22	33.27	-18
PBT	266.39	235.46	13	688.53	754.29	-9	988.67	877.02	13
Tax	61.58	61.50	0	163.34	185.76	-12	245.30	197.63	24
PAT	204.81	173.96	18	525.19	568.53	-8	743.37	679.39	9
Minority interest	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Profit/Loss of Associate Company	0.35	0.09	289	0.12	0.78	-85	0.79	0.94	-16
PAT	205.16	174.05	18	525.31	569.31	-8	744.16	680.33	9
EPS (Rs)*	13.2	11.2		11.2	12.2		11.9	10.9
*EPS is annualized on latest equity of Rs 623.15 crore, face value of Rs 10 each, Source: Capitaline Corporate Database

Previous News

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

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

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 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
( Analyst Meet / AGM - Conference Call 20-Jul-21 17:28 )

Nippon Life India Asset Management allots 3.69 lakh equity shares under ESOP
( Corporate News - 19-Aug-22 18:45 )

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

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 allots 6.02 lakh equity shares under ESOP
( Corporate News - 18-Jun-21 09:37 )