Nippon Life slides as Q3 PAT drops 18% QoQ

Shares of Nippon Life India Asset Management declined 4.97% to Rs 621.70 due to weak sequential numbers.

On a consolidated basis, Nippon Life India Asset Management's net profit slipped 17.97% to Rs 295.36 crore in Q3 FY25 as against Rs 360.10 crore in Q2 FY25. Total income fell 12.83% to Rs 603.3 crore in Q3FY25 over Q2FY25. PBT fell 19.41% to Rs 391.71 crore in Q3FY25 over Q2FY25.

On a year-on-year basis, the company's consolidated net profit rose 3.90% while total income advanced 13.74% in Q3 FY25. PBT climbed 9.40% YoY. Core operating profit stood at Rs 376.3 crore in Q3 FY25, up 49.92% YoY.

Total expenses jumped 22.77% to Rs 211.59 crore in Q3 FY25, compared with Rs 172.34 crore in Q3 FY24.

As on 31 December 2024, NAM Indias assets under management stood at Rs 6.56 lakh crore ($76.7 billion). NIMF's average assets under management stood at Rs 5.70 lakh crore ($66.6 billion), up 51% YoY in Q3 FY25.

During the quarter, share of equity assets rose to 51.1% of NIMFs AUM as against 48.6% as on 31 December 2023.

NIMF has one of the largest retail assets in the industry, at Rs 1.78 lakh crore (US$ 20.7 billion). Retail assets contributed 31% to NIMFs AUM vs. industry average of 27%.

High Networth Individual (HNI) AUM at Rs 1.69 lakh crore (US$ 19.8 billion), up 50% YoY & market share growth of 58 bps YoY.

NIMF is one of the largest ETF players with an AUM of Rs 1.50 lakh crore (US$ 17.5 billion) and a market share of 18.14%. Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of Rs 6,980 crore (US$ 815 million) across various schemes.

Sundeep Sikka, ED & CEO, NAM India, said, "We witnessed a continued increase in overall market share, with key positives being net sales and SIP market share remaining above equity market share, as well as an increase in SIP flows despite adverse market movements. We are humbled to have the trust of 20.0 million unique investors, i.e., over 1 in every 3 mutual fund investorsthe highest in the industry.

Nippon Life India Asset Management (NAM India) is the asset manager of Nippon India Mutual Fund (NIMF). Nippon Life Insurance Company is the promoter of NAM India and currently holds as 72.43% (As on December 31, 2024) ​​ ​of its total issued and paid-up equity share capital.

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