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Nippon Life India Asset Management has posted 42% surge in the net profit to Rs 211.95 crore in the quarter ended December 2020 (Q3FY2021), driven by strong growth assets and cost efficiencies. The company has exhibited sharp 18% decline in the employee expenses and 26% dip in other expense in Q3FY2021. The operating profit of the company came in flat at Rs 145.91 crore, while other income zoomed 127% to Rs 130.38 crore in Q3FY2021.
The depreciation declined 15% to Rs 7.77 crore in Q3FY2021. The profit before tax moved up 39% to Rs 268.52 crore. The effective tax eased to 21.2% in Q3FY2021 from 22.9% in Q3FY2020. The net profit increased 42% to Rs 211.95 crore in Q3FY2021.
Business highlights:
Assets under management of the company were at Rs 352360 crore end December 2020, up 14% over December 2019.
Average assets under management of the mutual fund rose 4% yoy to Rs 213033 crore.
The share of Equity Assets rose to 39.1% of AUM in the quarter ended December 2020 as against 38.9% for the quarter ended September 2020.
The company has one of the largest retail assets in the Industry, at Rs 58642 crore contributing 26% to AUM.
The company has garnered AUM of Rs 38753 crore from 'Beyond the Top 30 cities' category. This segment forms 17.5% of AUM compared with 16.0% for the Industry
Individual AUM was Rs 108182 crore and contributed 49% to AUM.
The company is one of the largest ETF players with AUM of Rs 33939 crore and a market share of 13%.
The company has successfully launched two NFOs in the passive category viz. the Nifty CPSE Bond Plus SOL ETF and the Passive Flexicap FoF in the quarter ended December 2020.
The company has approx. 92 lakh investor folios, with an annualized Systematic book of approx. Rs 8000 crore.
Nippon India AIF offers Category II and Category Ill Alternative Investment Funds and has a total commitment of approx. Rs 3500 crore across various schemes.
NIMF has geographical presence at approx. 290 locations pan India, and is amongst the highest in the industry.
For the quarter ended December 2020, digital purchase transactions rose to over 4 lakh - an increase of 39% as against quarter ended December 2019. Digital channel contributed 52% to total new purchase transactions.
Financial Performance 9MFY2021
Nippon Life India Asset Management has posted 25% increase in the net profit to Rs 513.561 crore in the nine months ended December 2020 (9MFY2021). The operating profit of the company declined 12% to Rs 388.18 crore, while other income zoomed 158% to Rs 297.14 crore in 9MFY2021, driven by mark-to-market gains on the investment portfolio.
The depreciation rose 7% to Rs 26.17 crore in 9MFY2021. The profit before tax moved up 24% to Rs 659.15 crore. The effective tax was lower at 22.2% in 9MFY2021 from 22.7% in 9MFY2020. The net profit increased 25% to Rs 513.56 crore in 9MFY2021.
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