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Operating profit up 26%, drop in other income hit bottomline
Nippon Life India Asset Management
29-Apr-2025, 07:31
Nippon Life India Asset Management has posted 13% decline in the net profit to Rs 298.60 crore in the quarter ended March 2025 (Q4FY2025). The income from operation of Nippon Life India Asset Management increased 21% to Rs 566.54 crore in Q4FY2025. Overall OPM has increased to 64.5% in Q4FY2025 from 62.1% in Q4FY2024, leading to 26% jump in operating profit to Rs 365.17 crore. The employee expenses increased 25% to Rs 110.5 crore, while other expenses moved up 2% to Rs 90.87 crore in Q4FY2025. Other income dipped 75% to Rs 23.04 crore. Interest cost increased 13% to Rs 1.80 crore. Depreciation moved up 17% to Rs 8.60 crore. PBT rose 1% to Rs 377.81 crore. The effective tax rate increased to 21.0% in Q4FY2025 compared to 8.4% in Q4FY2024. Provision for tax was expense of Rs 79.49 crore, compared to Rs 31.48 crore. Profit after tax declined 13% to Rs 298.32 crore. Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies declined 3% to Rs 0.28 crore. Finally, Net profit attributable to owners declined 13% to Rs 298.60 crore.
Nippon Life India Asset Management has posted 13% decline in the net profit to Rs 298.60 crore in the quarter ended March 2025 (Q4FY2025). The income from operation of Nippon Life India Asset Management increased 21% to Rs 566.54 crore in Q4FY2025. Overall OPM has increased to 64.5% in Q4FY2025 from 62.1% in Q4FY2024, leading to 26% jump in operating profit to Rs 365.17 crore. The employee expenses increased 25% to Rs 110.5 crore, while other expenses moved up 2% to Rs 90.87 crore in Q4FY2025. Other income dipped 75% to Rs 23.04 crore. Interest cost increased 13% to Rs 1.80 crore. Depreciation moved up 17% to Rs 8.60 crore. PBT rose 1% to Rs 377.81 crore. The effective tax rate increased to 21.0% in Q4FY2025 compared to 8.4% in Q4FY2024. Provision for tax was expense of Rs 79.49 crore, compared to Rs 31.48 crore. Profit after tax declined 13% to Rs 298.32 crore. Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies declined 3% to Rs 0.28 crore. Finally, Net profit attributable to owners declined 13% to Rs 298.60 crore.
Book value of the company stood at Rs 66.4 per share end March 2025.
Business highlights:
NAM India's assets under management stood at Rs 6.54 lakh crore. For Q4FY2025, NIMF's average assets under management stood at Rs 5.57 lakh crore up 29% YoY. The share of Equity Assets rose to 49.8% of NIMF's AUM as against 49.2% end March 2024. NIMF has one of the largest retail assets in the Industry, at Rs 1.64 lakh crore. Retail assets contributed 29% to NIMF's AUM against Industry average of 27%. High Networth Individual (HNI) AUM at Rs 1.66 lakh crore, +34% YoY & market share up 65 bps YoY. Sustained market share gain for 13 successive quarters. Corporate AUM was Rs 2.27 lakh crore, +23% YoY & market share growth of 10 bps YoY. NIMF's AUM from 'Beyond the Top 30 cities' (B-30) stood at Rs 1.11 lakh crore, +29% YoY. This forms 20.0% of NIMF's AUM against 18.2% for the Industry. NIMF's quarterly systematic flows rose by 39% YoY to Rs 97.2 bn. This increase resulted in an annualized systematic book of Rs 38200 crore. NIMF is one of the largest ETF players with AUM of Rs 1.54 lakh crore (US$ 18.0 billion) and a market share of 19.07%. Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of Rs 7410 crore across various schemes. NIMF has geographical presence at 265 locations pan India and is amongst the highest in the industry. Digital purchase transactions rose to 3.54 million in Q4FY25, up from 2.37 million in Q4FY24. Digital channel contributed 74% to new purchase transactions in Q4 FY25. Sundeep Sikka, ED & CEO, NAM India, said 'We witnessed a healthy Equity Net Sales and SIP market share, with both increasing QoQ and remaining above Equity AUM market share. SIP flows remained robust despite adverse market movements. We remain humbled to have the trust of 20.8 mn unique investors i.e. over 1 in every 3 mutual fund investors - highest in the Industry.'Financial Performance FY2025
The income from operation of Nippon Life India Asset Management increased 36% to Rs 2230.69 crore in FY2025. Overall OPM has increased to 64.6% in FY2025 from 60.5% in FY2024, leading to 45% rise in operating profit to Rs 1441.63 crore. Other income declined 26% to Rs 290.03 crore. Interest cost increased 8% to Rs 6.74 crore. Depreciation rose 5% to Rs 30.60 crore. PBT moved up 25% to Rs 1694.32 crore. The effective tax rate increased to 24.1% in FY2025 compared to 18.2% in FY2024. Provision for tax was expense of Rs 408.59 crore, compared to Rs 246.23 crore. Profit after tax increased 16% to Rs 1285.73 crore. Profit attributable to non-controlling interest was nil in both the periods. The share of profit of associate companies decreased 38% to Rs 0.66 crore. Finally, Net profit attributable to owners increased 16% yoy to Rs 1286.39 crore in FY2025.| Particulars | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Sales | 566.54 | 468.27 | 21 | 2230.69 | 1643.22 | 36 |
| OPM % | 64.5 | 62.1 | ' | 64.6 | 60.5 | ' |
| OP | 365.17 | 290.75 | 26 | 1441.63 | 993.74 | 45 |
| Other Income | 23.04 | 92.30 | -75 | 290.03 | 394.12 | -26 |
| PBDIT | 388.21 | 383.05 | 1 | 1731.66 | 1387.86 | 25 |
| Interest | 1.80 | 1.60 | 13 | 6.74 | 6.24 | 8 |
| PBDT | 386.41 | 381.45 | 1 | 1724.92 | 1381.62 | 25 |
| Depreciation | 8.60 | 7.34 | 17 | 30.60 | 29.14 | 5 |
| PBT | 377.81 | 374.11 | 1 | 1694.32 | 1352.48 | 25 |
| Tax | 79.49 | 31.48 | 153 | 408.59 | 246.23 | 66 |
| PAT | 298.32 | 342.63 | -13 | 1285.73 | 1106.25 | 16 |
| Minority interest | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| Profit/Loss of Associate Company | 0.28 | 0.29 | -3 | 0.66 | 1.07 | -38 |
| PAT | 298.60 | 342.92 | -13 | 1286.39 | 1107.32 | 16 |
| EPS (Rs)* | 18.8 | 21.6 | ' | 20.3 | 17.4 | ' |
| *EPS is annualized on latest equity of Rs 634.7 crore, face value of Rs 10 each, Source: Capitaline Corporate Database | ||||||
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