Nippon India MF sees 10% rise in PBT to Rs 199 cr in June quarter

Company had seen business recovery since ownership change, says it has onboarded more than 370 institutional investors after Reliance Capital exited

Nippon India Mutual Fund (NIMF) has seen a 10 per cent jump in profit before tax (PBT) for June quarter, on a year-on-year basis.

The asset management company saw PBT of Rs 199 crore in June quarter. On a standalone basis, the company’s June quarter PBT improved by 7.8 per cent at Rs 192 crore.

The company had seen recovery in its business after Nippon Life took full ownership of the asset manager and Reliance Capital exited the company last year.

The asset manager in its disclosure pointed out that since the shareholding change, it has had more than 370 institutional investors. Of these, 26 are companies in BSE-100, which represents top-100 corporates by market capitalisation.

The company saw its profit after tax (PAT) jump by 25 per cent in June quarter (Rs 156 crore), on a year-on-year basis for the consolidated business. The PAT was up 22 per cent on standalone basis.

The asset manager continued to maintain its leadership position in retail segment, accounting for 24 per cent market share of monthly retail average assets under management.

Digital purchases were up 43 per cent in June quarter, compared to previous quarter.

The company has 6.1 million unique investors out of 21.1 million such investors in the industry, accounting for 29 per cent market share.

The investor folios for exchange traded funds (ETFs) rose by 117,000 in June quarter.  

“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,” said Sundeep Sikka, chief executive officer, NIMF.