Capitaline

Results 25-Apr-24

Analysis

Nippon Life India Asset Management

AUM jumps with market share gains

Nippon Life India Asset Management has posted strong 73% surge in the net profit to Rs 342.92 crore in the quarter ended March 2024 (Q4FY2024). The income from operation increased 34.43% to Rs 468.27 crore in Q4FY2024. Overall OPM has increased to 62.09% in Q4FY2024 from 59.95% in Q4FY2023, leading to 39.22% rise in operating profit to Rs 290.75 crore. Other expenditure as a percentage of total income moved down to 18.98% from 19.23% in Q4FY2024. The staff cost as a percentage of total income declined to 18.93% from 20.82% in Q4FY2024.

Other income increased 132.55% to Rs 92.3 crore. Interest cost increased 37.93% to Rs 1.6 crore. Depreciation moved down 10.05% to Rs 7.34 crore. PBT moved up 56.39% to Rs 374.11 crore.

The effective tax rate declined to 8.41% in Q4FY2024 compared to 17.34% in Q4FY2023. Provision for tax was expense of Rs 31.48 crore, compared to Rs 41.47 crore. Profit after tax rose 73.27% to Rs 342.63 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies increased 3.57% to Rs 0.29 crore. Finally, Net profit attributable to owners moved up 73.17% to Rs 342.92 crore.

Book value of the company stood at Rs 66.6 per share end March 2024.

Business highlights:

NAM India’s assets under management stood at Rs 5.24 lakh crore end March 2024 up 44% over a year ago.

NIMF’s average assets under management stood at Rs 4.31 lakh crore - an increase of 47% yoy and 14% qoq.

The share of Equity Assets rose to 49.2% of NIMF’s AUM as against 44.4% end March 2023

NIMF has one of the largest retail assets in the Industry, at Rs 133500 crore. Retail assets contributed 30% to NIMF’s AUM vs Industry average of 27%.

High Networth Individual (HNI) AUM at Rs 124300 crore – up by Rs 47000 crore yoy, +10% qoq & market share growth of 11 bps qoq

Individual AUM (Retail + HNI) was Rs 2,57800 crore - an increase of 10% qoq. This segment contributed 58% to NIMF’s AUM

NIMF’s AUM from ‘Beyond the Top 30 cities’ (B-30) stood at Rs 86200 crore - an increase of 9% qoq. This forms 19.5% of NIMF’s AUM vs. 17.9% for the Industry

NIMF’s quarterly systematic flows rose by 18% qoq to Rs 7010 crore. This increase resulted in an annualised systematic book of over Rs 28000 crore.

NIMF is one of the largest ETF players with AUM of Rs 111500 crore and a market share of 16.71%

Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of Rs 6190 crore across various schemes

NIMF has geographical presence at 263 locations pan India, and is amongst the highest in the industry

Digital purchase transactions rose to 6.6 mn in FY24, up from 3.3 mn in FY23. Digital channel contributed 60% to new purchase transactions in FY24

Financial Performance FY2024

The income from operation increased 21.74% to Rs 1643.22 crore in FY2024. Overall OPM has increased to 60.48% in FY2024 from 58.88% in FY2023, leading to 25.04% rise in operating profit to Rs 993.74 crore. Other expenditure as a percentage of total income moved up to 19.08% from 18.69% in FY2024. The staff cost as a percentage of total income declined to 20.45% from 22.44% in FY2024.

Other income increased 136.30% to Rs 394.12 crore. There is 57.18% rise in interest cost at Rs 6.24 crore and 2.18% decline in depreciation to Rs 29.14 crore, Profit before tax increased 45.78% to Rs 1,352.48 crore. There is no extraordinary item. After which, PBT increased 45.78% to Rs 1,352.48 crore.

The effective tax rate declined to 18.21% in FY2024 compared to 22.08% in FY2023. Provision for tax was expense of Rs 246.23 crore, compared to Rs 204.81 crore. Profit after tax rose 53.02% to Rs 1,106.25 crore.

Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies increased 167.50% to Rs 1.07 crore. Finally, Net profit attributable to owners rose 53.09% yoy to Rs 1,107.32 crore in FY2024.

Nippon Life India Asset Management: Consolidated Results
	2403 (3)	2303 (3)	Var %	2403 (12)	2303 (12)	Var %
Sales	468.27	348.34	34	1643.22	1349.82	22
OPM %	62.09	59.95		60.48	58.88
OP	290.75	208.84	39	993.74	794.71	25
Other Income	92.30	39.69	133	394.12	166.79	136
PBDIT	383.05	248.53	54	1387.86	961.50	44
Interest	1.60	1.16	38	6.24	3.97	57
PBDT	381.45	247.37	54	1381.62	957.53	44
Depreciation	7.34	8.16	-10	29.14	29.79	-2
PBT	374.11	239.21	56	1352.48	927.74	46
Tax	31.48	41.47	-24	246.23	204.81	20
PAT	342.63	197.74	73	1106.25	722.93	53
Minority interest	0.00	0.00	-	0.00	0.00	-
Profit/Loss of Associate Company	0.29	0.28	4	1.07	0.40	168
PAT	342.92	198.02	73	1107.32	723.33	53
EPS (Rs)*	21.8	12.6		17.6	11.5
*EPS is annualized on latest equity of Rs 630.46 crore, face value of Rs 10 each, Source: Capitaline Corporate Database

Previous News

Nippon Life India Asset Management consolidated net profit rises 17.87% in the December 2022 quarter
( Results - Announcements 31-Jan-23 07:38 )

Nippon Life India Asset Management
( Results - Analysis 25-Apr-24 07:32 )

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

Nippon Life India Asset Management allots 60,499 equity shares under ESOP
( Corporate News - 07-Jun-22 17:43 )

Nippon Life India Asset Management allots 37,704 equity shares under ESOS
( Corporate News - 05-Apr-22 19:00 )

Nippon Life India Asset Management
( Results - Analysis 27-Oct-21 12:07 )

NAM India's Q2 PAT up 19% YoY to Rs 244 crore; share of retail assets in AUM at 30%
( Hot Pursuit - 30-Oct-23 17:35 )

Volumes soar at ICRA Ltd counter
( Hot Pursuit - 15-Jan-21 14:30 )

Nippon acquires additional 21.54% stake in Reliance Nippon Life Asset Management
( Corporate News - 28-Sep-19 15:40 )

Sundaram Clayton Ltd leads gainers in 'A' group
( Hot Pursuit - 16-Jul-21 12:00 )

Reliance Capital receives Rs 5500 cr from sale of stake in Reliance Nippon Life Asset Management
( Corporate News - 28-Sep-19 17:23 )