Nippon India AMC net up 25 per cent on lower cost

Our Bureau Mumbai | Updated on July 27, 2020 Published on July 27, 2020

Nippon Life India Asset Management Company has reported its net profit increased 25 per cent in June quarter to ₹156 crore against ₹125 crore logged in same period last year, on the back of lower cost and other income.

Revenue from operations was down at ₹233 crore (₹325 crore) while other income jumped substantially to ₹103 crore (₹35 crore). Overall expenses dipped 24 per cent ₹137 crore (₹180 crore) as the fund house trimmed fee and commission expenses to ₹9 crore (₹25 crore) and employees benefit to ₹72 crore (₹82 crore). Lower tax outgo of ₹44 crore (₹55 crore) also helped in boosting profits.

Sundeep Sikka, ED & CEO, NAM India, said the fund house has adapted to the new normal in Covid pandemic and have seamlessly executed operations in the last few months even as economies across global recover from the impact of Covid. Post the Covid-related events in March and April, he said NIMF saw improvement in investor flows and growth in AUMs, in line with the industry. Despite turbulent times, the fund house has onboarded over 370 institutional investors in the last nine months and have attracted fresh flows from several HNIs and family offices, he said.

As one of the earliest entrants in the ETF business, we have the largest share in investor folios and volumes far outpace the rest of the industry. The Gold Fund continues to show tremendous growth and crossed ₹4,200 crore in AUM, he said.

As of June-end, NAM India’s assets under management were ₹2,73,701 crore with equity assets contributing 38 per cent of AUM.

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Published on July 27, 2020
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