Nippon Life India's profit rose 42% in December quarter; Income surges 11%

Nippon Life India Asset Management (NAM India) posted the financial results of the December quarter on Wednesday. The company has reported a 42 per cent jump in consolidated profit after tax (PAT) at Rs 211.95 crore for three months ended December 31, 2020. The company had a profit after tax (PAT) of Rs 149.32 crore in the year-ago period.

NAM's revenue from operations declined 11.4% to Rs 268.46 crore in the quarter ended December 2020 as against Rs 303.14 crore posted in the quarter ended December 31, 2019.

Sundeep Sikka, ED and CEO of NAM India said, "In the last six months, global and domestic economic activity has seen a sharp rebound. The Indian mutual fund industry's assets have increased at a strong pace in this period and, are poised to grow exponentially in the next three-five years". He added, "Our priority is to be 'future-ready' and capture this long-term opportunity."

To execute a profitable growth strategy, with the "Investor First" philosophy at its core, we place relentless emphasis on four key pillars viz. superior fund performance in the active category, comprehensive 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 and best-in-class customer service.

Besides, the company's board has approved an interim dividend of Rs 3 per share and has fixed the record date as of February 8, 2021. The dividend will be paid on and from February 22, 2021. A duly completed form being intimation of record date is enclosed for your information and record.

NAM India is the asset manager of Nippon India Mutual Fund's scheme. As of December quarter, NAM India has assets under management of Rs 3.52 lakh crore, including Nippon India Mutual Fund of Rs 2.13 lakh crore. For the quarter ended December 31, 2020, NIMF's average assets under management were Rs 2,13,033 crore (US$ 28.4 billion). Its share of Equity Assets rose to 39.1 per cent of NIMF's AUM on December 31, 2020, as against 38.9 per cent for the quarter ended September 30, 2020.

As on December 31, 2020, NIMF has one of the largest retail assets in the Industry, at Rs. 58,642 crore (US$ 7.8 billion). Retail assets contributed 26% to NIMF's AUM. As on December 2020, NIMF garnered AUM of Rs 38,753 crore (US$ 5.2 billion) from 'Beyond the Top 30 cities' category. This segment forms 17.5% of NIMF's AUM vis-a-vis 16.0% for the Industry.

Nippon Life India Asset Management Limited is one of the largest asset managers in India, managing (directly & indirectly} assets across mutual funds including Exchange Traded Funds, managed accounts, including portfolio management services, alternative investments funds and pension funds; and offshore funds and advisory mandates. NAM India is the asset manager of Nippon India Mutual Fund's schemes.