Nippon Life AMC hits record high as Q4 PAT soars 73% YoY

Nippon Life India Asset Management (AMC) rallied 4.46% to Rs 587.10 after its consolidated net profit surged 73.17% to Rs 342.92 crore in Q4 FY24 as compared with Rs 198.02 crore in Q4 FY23.

Total income jumped 44.47% year on year (YoY) to Rs 560.57 crore in the quarter ended March 2024.

Profit before tax (PBT) grew 56.39% to Rs 374.11 crore in March quarter from Rs 239.21 crore recorded in corresponding quarter last year.

Total expenses spiked 25.29% to Rs 186.46 crore in Q4 FY24 over Q4 FY23. Employee benefit expense was at Rs 88.63 crore (up 22.21% YoY) and other expenses stood at Rs 87.45 crore (up 30.77% YoY) during the period under review.

Operating profit stood at Rs 282 crore in fourth quarter of FY24, registering a growth of 41% YoY.

As on March 2024, NAM Indias assets under management stood at Rs 5.24 lakh crore (US$ 62.8 billion). NIMFs average assets under management stood at Rs 4.31 lakh crore ($51.7 billion), up 47% YoY in Q4 FY24.

During the quarter, share of equity assets rose to 49.2% of NIMFs AUM as against 44.4% as on 31 March 2023. Individual AUM (retail + HNI) was at Rs 2,57,800 crore ($30.9 billion) - an increase of 10% QoQ. This segment contributed 58% to NIMFs AUM.

NIMF is one of the largest ETF players with AUM of Rs 1,11,500 crore ($13.4 billion) and a market share of 16.71%.

On full year basis, the companys net profit jumped 53.09% to Rs 1,107.32 crore on 34.34% rise in total income to Rs 2,037.34 crore in FY24 over FY23.

Meanwhile, the companys board has recommended a final dividend of Rs 11.00 per equity share for the financial year ended 31 March 2024, for the approval of the shareholders. The record date for the same is Friday, 28 June 2024 and the payment date will be on and from 16 July 2024.

Further, based on the recommendation of nomination and remuneration committee, the board of directors approved appointment of Rajesh Jayaram as head product and senior managerial personnel with effect from 1 May 2024.

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.

The counter hit a life time high of Rs 623.40 in todays intraday session.

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