Nippon Life AMC jumps on strong Q1 outcome

Nippon Life India Asset Management (NAM India) advanced 3.28% to Rs 279.05 after consolidated net profit rose 24.3% to Rs 156.12 crore on 6.7% decrease in total income to Rs 336.18 crore in Q1 June 2020 over Q1 June 2019.

Consolidated profit before tax (PBT) jumped 10.6% to Rs 199.67 crore in Q1 June 2020 as against Rs 180.54 crore in Q1 June 2019. Current tax expenses for the quarter tanked 39.8% at Rs 35.54 crore as against Rs 59.01 crore in Q1 June 2019. The company's operating expense fell 24% to Rs 137 crore during the quarter. The result was declared after trading hours yesterday, 27 July 2020.

Nippon Life India Asset Management (NAM India) is an asset manager of Nippon India Mutual Fund (NIMF). As on 30 June 2020, NAM India's assets under management was Rs 2,73,701 crore. For the quarter ended 30 June 2020, NIMF's average assets under management was Rs 1,80,061 crore. For the quarter ended 30 June 2020, equity assets contributed 38% to NIMF's AUM.

As on 30 June 2020, Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of over Rs 3,350 crore across various schemes. As on 30 June 2020, NIMF has geographical presence at approximately 290 locations pan India, and is amongst the highest in the industry.

Commenting on the Q1 performance, Sundeep Sikka, the executive director (ED) and chief executive officer (CEO) of NAM India, has stated that: "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," he added.

Nippon Life India Asset Management is one of the largest asset managers in India, managing (directly & indirectly) assets across mutual funds, managed accounts, alternative investments and offshore funds. NAM India is the asset manager of Nippon India Mutual Fund's schemes.The company also acts as an advisor for India focused Equity and Fixed Income funds in Japan (launched by Nissay Asset Management), and in Thailand (launched by BBL Asset Management). It also manages offshore funds through its subsidiaries in Singapore and Mauritius and,also has representative office in Dubai thereby catering to investors across Asia, Middle East, UK, US, and Europe.

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