Nippon Life India AMC up 42% on lower cost

Nippon Life India Asset Management has reported a 42 per cent increase in December quarter net profit at ₹212 crore against ₹149 crore logged in the same period last year, on the back of lower cost. The fund house will pay a dividend of ₹3 per equity share. The record date was fixed at February 8.

While income from operations was down at ₹268 crore (₹303 crore), other income increased to ₹130 crore (₹57 crore) and pushed up the overall income to ₹399 crore (₹361 crore).

Total expenses were down at ₹130 crore (₹167 crore). Average asset under management was up at ₹2.13 lakh crore against ₹2.04 lakh crore with equity accounting for 39 per cent (44 per cent), debt and liquid adding up to 30 per cent (27 per cent) and 14 per cent (16 per cent). Exchange Traded Fund contribution increased to 15 per cent of AUM (13 per cent)

As of December-end, Nippon India MF has about 92 lakh investor folios with an annualised systematic investment book of ₹8,000 crore. NIMF garnered AUM of ₹38,753 crore from ‘Beyond the Top 30 cities’ category and this segment forms 17.5 per cent of AUM against 16 per cent for the industry. Individual AUM was ₹1.08 lakh crore and contributed 49 per cent to NIMF’s AUM. Nippon India AIF offers Category II and Category III Alternative Investment Funds and has a total commitment of ₹3,500 crore across various schemes.

Growth strategy

Sundeep Sikka, Executive Director & CEO, NAM India, said the Indian mutual fund industry’s assets have increased at a strong pace in the last six months and are poised to grow exponentially in the next 3-5 years.

To execute a profitable growth strategy, the fund house is placing emphasis on performance, product offering in the passive category, business de-risking by increasing share of non-MF segments and a robust digitech architecture that provides wide reach, he added.