Capitaline

Results 30-Jan-24

Analysis

Nippon Life India Asset Management

AUM surges 34%

Nippon Life India Asset Management has posted strong 39% increase in the net profit to Rs 284.27 crore in the quarter ended December 2023 (Q3FY2024).

The income from operation increased 19.65% to Rs 423.32 crore in Q3FY2024. Overall OPM has increased to 61.22% in Q3FY2024 from 60.28% in Q3FY2023, leading to 21.51% rise in operating profit to Rs 259.16 crore. Other expenditure as a percentage of total income moved down to 18.12% from 18.61% in Q3FY2024. The staff cost as a percentage of total income declined to 20.66% from 21.11% in Q3FY2024.

Other income increased 72.89% to Rs 107.07 crore. Interest cost increased 53.70% to Rs 1.66 crore. Depreciation moved down 15.76% to Rs 6.52 crore. PBT moved up 34.41% to Rs 358.05 crore.

The effective tax rate declined to 20.68% in Q3FY2024 compared to 23.12% in Q3FY2023..Provision for tax was expense of Rs 74.05 crore, compared to Rs 61.58 crore. Profit after tax rose 38.67% to Rs 284.00 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies decreased 22.86% to Rs 0.27 crore. Finally, Net profit attributable to owners moved up 38.56% to Rs 284.27 crore.

Book value of the company stood at Rs 61.4 per share end December 2023.

Business highlights:

NAM India’s assets under management stood at Rs 4.81 lakh crore end December 2023, up 34% over a year ago.

For Q3FY2024, NIMF’s average assets under management stood at Rs 3.78 lakh crore - an increase of 29% YoY and 8% QoQ

For Q3FY2024, share of Equity Assets rose to 48.6% of NIMF’s AUM as against 44.5% end December 2022

NIMF has one of the largest retail assets in the Industry, at Rs 122500 crore. Retail assets contributed 31% to NIMF’s AUM vs Industry average of 27%

High Networth Individual (HNI) AUM at Rs 112700 crore – up by Rs 38000 crore YoY, +13% QoQ & market share growth of 28 bps QoQ

Individual AUM (Retail + HNI) was Rs 235200 crore - an increase of 12% QoQ. This segment contributed 60% to NIMF’s AUM

NIMF’s AUM from ‘Beyond the Top 30 cities’ (B-30) stood at Rs 79100 crore - an increase of 10% QoQ. This segment forms 20.1% of NIMF’s AUM vis-à-vis 17.8% for the Industry

NIMF’s quarterly systematic flows rose by 26% QoQ to Rs 5930 crore. This increase resulted in an annualised systematic book of over Rs 252 billion.

NIMF is one of the largest ETF players with AUM of Rs 92900 crore and a market share of 15.36%

Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of Rs 6030 crore across various schemes

NIMF has geographical presence at 260 locations pan India, and is amongst the highest in the industry

Digital purchase transactions rose to 4.25 mn in 9MFY24, up from 2.41 mn in the same period last year. Digital channel contributed 58% to new purchase transactions in 9M FY24

Financial Performance 9MFY2024

The income from operation increased 17.32% to Rs 1174.95 crore in 9MFY2024. Overall OPM has increased to 59.83% in 9MFY2024 from 58.50% in 9MFY2023, leading to 19.99% rise in operating profit to Rs 702.99 crore. Other expenditure as a percentage of total income moved up to 19.29% from 18.61% in 9MFY2024. The staff cost as a percentage of total income declined to 20.88% from 22.89% in 9MFY2024.

Other income increased 137.47% to Rs 301.82 crore. Interest cost increased 65.12% to Rs 4.64 crore. Depreciation moved up 0.79% to Rs 21.8 crore. PBT moved up 42.10% to Rs 978.37 crore.

The effective tax rate declined to 21.95% in 9MFY2024 compared to 23.72% in 9MFY2023. Provision for tax was expense of Rs 214.75 crore, compared to Rs 163.34 crore. Profit after tax rose 45.40% to Rs 763.62 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies increased 550% to Rs 0.78 crore. Finally, Net profit attributable to owners rose 45.51% yoy to Rs 764.40 crore in 9MFY2024.

Nippon Life India Asset Management: Consolidated Results
	2312 (3)	2212 (3)	Var %	2312 (9)	2212 (9)	Var %	2303 (12)	2203 (12)	Var %
Sales	423.32	353.81	20	1174.95	1001.48	17	1349.82	1306.64	3
OPM %	61.2	60.3		59.8	58.5		58.9	60.5
OP	259.16	213.28	22	702.99	585.87	20	794.71	790.72	1
Other Income	107.07	61.93	73	301.82	127.10	137	166.79	228.99	-27
PBDIT	366.23	275.21	33	1004.81	712.97	41	961.50	1019.71	-6
Interest	1.66	1.08	54	4.64	2.81	65	3.97	3.82	4
PBDT	364.57	274.13	33	1000.17	710.16	41	957.53	1015.89	-6
Depreciation	6.52	7.74	-16	21.80	21.63	1	29.79	27.22	9
PBT	358.05	266.39	34	978.37	688.53	42	927.74	988.67	-6
Tax	74.05	61.58	20	214.75	163.34	31	204.81	245.30	-17
PAT	284.00	204.81	39	763.62	525.19	45	722.93	743.37	-3
Minority interest	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Profit/Loss of Associate Company	0.27	0.35	-23	0.78	0.12	550	0.40	0.79	-49
PAT	284.27	205.16	39	764.40	525.31	46	723.33	744.16	-3
EPS (Rs)*	18.1	13.1		16.2	11.2		11.5	11.9
*EPS is annualized on latest equity of Rs 627.97 crore, face value of Rs 10 each, Source: Capitaline Corporate Database

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