Nippon Life India Asset Management announces stellar Q1FY21 earnings

Nippon Life India Asset Management (NAM India), asset manager of Nippon India Mutual Fund (NIMF), announced its financial results for the quarter ended June 30, 2020.

Financial Highlights

- For the quarter ended June 30, 2020, Total Income was Rs. 336 crore (US$ 45 million)

- For the quarter ended June 30, 2020, Profit after Tax was Rs. 156 crore (US$ 21 million) - an increase of 25%

Business Highlights

- As on June 30, 2020, NAM India's assets under management was Rs. 2,73,701 crore (US$ 36.5 billion)

- For the quarter ended June 30, 2020, NIMF's average assets under management was Rs. 1,80,061 crore (US$ 24.0 billion)

- For the quarter ended June 30, 2020, Equity Assets contributed 38% to NIMF's AUM

- As on June 2020, NIMF has one of the largest retail assets in the Industry, at Rs. 46,029 crore (US$ 6.1 billion). Retail assets contributed 24% to NIMF's AUM

- As on June 2020, NIMF garnered AUM of Rs. 32,923 crore (US$ 4.4 billion) from 'Beyond the Top 30 cities' category. This segment forms 17.3% of NIMF's AUM vis-à-vis 15.4% for the Industry

- As on June 30, 2020, NIMF has over 91 lakh investor folios. Out of these, 34 lakh were SIP and STP folios, with an annualised book of Rs. 8,400 crore (US$ 1.1 billion) - As on June 2020, Individual AUM was Rs. 91,211 crore (US$ 12.2 billion) and contributed 48% to NIMF's AUM

- For the quarter ended June 30, 2020, NIMF is one of the largest ETF players with AUM of Rs. 25,765 crore (US$ 3.4 billion) and a market share of approx. 15%

- As on June 30, 2020, Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of over Rs. 3,350 crore (US$ 448 million) across various schemes

- As on June 30, 2020, NIMF has geographical presence at approx. 290 locations pan India, and is amongst the highest in the industry

- For the quarter ended June 30, 2020, digital purchase transactions rose to 5 lakh - an increase of 43% as against quarter ended March 31, 2020. Digital channel contributed 56% to total new purchase transactions

- For the quarter ended June 30, 2020, NIMF conducted over 30 Investor Awareness Programs, covering more than 1,600 participants

Mr. Sundeep Sikka, ED & CEO, NAM India, said "Even as business activity in most economies gradually resumes, we, at NAM India, have fully adapted to the "New Normal", and have seamlessly executed our operations in the last few months. Post the Covid-related events in March and April, NIMF saw improvement in investor flows and growth in AUMs, in line with the industry. Q1 FY21 saw a rise of 25% in profits, driven by better investor stickiness, strength in the retail segment, and cost efficiencies.

In these turbulent times, I am happy to state that, post transition, our business recovery continues as planned. We have onboarded over 370 institutional investors in the last nine months, and have attracted fresh flows from several HNIs / family offices.

We are garnering rich dividends from our investments in creating a superior digital ecosystem. Over 75 per cent of our overall transactions are being executed on various Zero Touch avenues. As one of the earliest entrants in the ETF business, we have the largest share in investor folios and our volumes far outpace the rest of the industry. Our Gold Fund continues to show tremendous growth and crossed Rs. 4,200 crore in AUM."

Shares of Nippon Life India Asset Management Ltd was last trading in BSE at Rs.270 as compared to the previous close of Rs. 279.75. The total number of shares traded during the day was 46734 in over 2257 trades.

The stock hit an intraday high of Rs. 281 and intraday low of 269.55. The net turnover during the day was Rs. 12713475.

Source : Equity Bulls

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