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Hot Pursuit News

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(25 Oct 2024, 11:24)

Nippon Life gains as Q2 PAT surges 47% YoY to Rs 360 crore

Nippon Life India Asset Management added 1.39% to Rs 682.15 after the company’s consolidated net profit jumped 47.33% to Rs 360.10 crore on 45.59% rise in total income to Rs 692.08 crore in Q2 FY25 over Q2 FY24.


Revenue from operations was at Rs 571.30 crore in Q2 FY25, registering a growth of 43.73% on YoY basis.

Profit before tax (PBT) surged 56.59% to Rs 486.05 crore in the September quarter from Rs 310.39 crore recorded in the corresponding quarter previous year.

Total expenses added 24.88% to Rs 206.03 crore in Q2 FY25 as compared with Rs 164.97 crore in Q2 FY24.

Core operating profit stood at Rs 3,653 crore in Q2 FY25, up 57% from Rs 2,325 crore recorded in Q2 FY24.

As on June 2024, NAM India’s assets under management stood at Rs 6.54 lakh crore ($ 78.1 billion). NIMF’s average assets under management stood at Rs 5.49 lakh crore ($65.5 billion), up 57% YoY in Q2 FY25.

During the quarter, share of equity assets rose to 51.1% of NIMF’s AUM as against 46.8% as on 30 September 2023. Individual AUM (retail + HNI) was at Rs 3.39 lakh crore ($40.4 billion), registering a growth of 14% QoQ. This segment contributed 60% to NIMF’s AUM.

NIMF has one of the largest retail assets in the industry, at Rs 1.74 lakh crore ($ 20.7 billion). Retail assets contributed 31% to NIMF’s AUM as against industry average of 28%.

NIMF is one of the largest ETF players with AUM of Rs 1.48 lakh crore ($17.7 billion) and a market share of 18.17%.

On half year basis, the company’s net profit rallied 44.21% to Rs 692.43 crore on 43.19% rise in revenue to Rs 1076.26 crore in H1 FY25 over H1 FY24.

Meanwhile, the company's board has approved declaration of an interim dividend of Rs 8.00 per equity share. The company has fixed the record date 6 November 2024 for the purpose of ascertaining the entitlement of the shareholders to the interim dividend. Dividend will be paid on and from 14 November 2024.

Sundeep Sikka, ED & CEO, NAM India, said “The trend in overall market share gains sustained, including equity – aided by increasing systematic flows. We are humbled to have the trust of 18.9 mn unique investors i.e. over 1 in every 3 mutual fund investors – highest in the Industry.”

NAM India is the asset manager of Nippon India Mutual Fund (NIMF). The company is involved in managing mutual funds including exchange traded funds (ETFs); managed accounts, including portfolio management services (PMS), alternative investment funds and pension funds; and offshore funds and advisory mandates.

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