Reliance Nippon AMC Q2 net profit rises 12% to Rs 1.14 billion

Reliance Nippon Life Asset Management (RNAM) Wednesday reported a 12 per cent growth in consolidated net profit at Rs 1.14 billion in the three months ended September 30, 2018.

In comparison, the company had a net profit of Rs 1.02 billion in July-September quarter of 2017-18, RNAM said in a regulatory filing to the stock exchanges.

The company's total revenue rose to Rs 3.91 billion in the second quarter ended September 30, 2018 from Rs 3.86 billion in the same period last fiscal.

RNAM's assets under management (AUM) increased by 6 per cent to Rs 4.05 trillion as on September 30, 2018, across mutual funds, pension funds, managed accounts and offshore funds.

Further, the company's mutual fund assets base also climbed 6 per cent to over Rs 2.45 trillion during the period under review.

"We continue to deliver on our strategy of deeper retail penetration and garnering higher flows from 'beyond Top 30 cities' with focus on profitable growth," RNAM Chief Executive Officer Sundeep Sikka said adding SIP (Systematic Investment Plan) flows continue to remain strong, indicating the evolving behavior of retail investors.

"We have strengthened our physical and digital distribution network and are well geared for robust growth in the coming quarters," Sikka added.

As on September 30, this year, the company has about 29 lakh SIP folios, with annualised book of Rs 102 billion.